Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1908-07-20
RECEIVER WILDES MAKES FIRST REPORT

AA NO
up with paying tenants makes it
more attractive to possible pur-
chaser than leaving it absolutely
| vacant.
In Goldfield ultimate realization up
on the buildings appear more propi-
tious, unless the times become much
worse than they are at present
which seems improbable-and some
substantial profit is possible there.
A Few Examples
To illustrate some of the charges
have made against the management
of various branches, l cite the fol-
lowing instances which will establish
the points l have sought to make:
AS an example of financiering, and
which is typical of Golddeld and
Tonopah branch methods, is the loan
of about Seventy-five Thousand DOL
lars (s75 ,000.0O) to man in Tonopah
whose friends? rate him as not wor
thy of an individual loan of Five
Hundred Dollars (s500O0). Yet he
was bolstered up and the bank sat
supremely satisfied with security that
would not satisfy the most prodigal
novice 1t is found, that this man is
"A good fellow" and very much of
promoter, and of course, a dis
penser of promotion stock, to those
who can show him small favors in
the way of big loans.
| Throwing good money after bad is
indeed high finance. AS an exempli-
fication of this / will incidentally call
attention to the fact that notwith
| standing the Sullivan Trust Company
! people were hundreds of thousands of
dollars in debt to this concern, a final
| payment of Forty Thousand Dollars
| ($40, 100000 was made, by order of
the President of the bank, on pro-
perty Of the promotion company, and
this additional debt now stands
against the Sullivan Trust Company.
1t may be necessary for the bank to
| pay out reasonable sums of money
for the purpose of protecting inter
ests, such as assessments on stocks,
when such stocks are of greater
value than the assessment calls fol-
but l judge it is not the function of
bank to use its depositors' money
for the purpose of buying mines OF
improved value.
BY this time the important part
the account of the Sullivan Trust
Company played in wrecking this in
stitution should be pretty we'll under
stood One would hardly expect that
after the closing of this bank the
promotion company, which was known
to be hopelessly insolvent, would be
allowed to still further increase its
Indebtedness. Yet l find that such
is the case. On the 10th of January
1908, nearly three months after the
State Bank and Trust Company closed
it's doors, Il honored Sullivan Trust
Company check for Two Thousand
Dollars (S2000.0O), drawn by the
manager of that Company, and ap-
piled the same to the managers per-
sonal account. In other words, 1t ac-
cepted check utterly worthless and
drawn against a hopelessly insolvent
concern, and known by the bank to
be such, and gave up in return valu->
able securities.
An agent of a branch bank desired
to do little speculating. For obv~
ious reasons he could not do so in
his own name, while still employed
in the bank. A way OF avoiding such
a restriction was easy for him. He
simply selected a man who would
have good financial standing and deli
berately carried on the accounts in
sumed large proportions, but as it
all appeared in the name of a re-
sponsible party, and not in that of an
employee, the directors probably saw
no occasion to be alarmed about it.
When I made an effort to collect it
from the individual whose name APP
peared as debtor to the concern
the reply was: "Why, that is not my
account. 1t is So and Sos. He
could not deal in his own name so
used mine. He will acknowledge it
if asked" But he didn't, and as
sured me the account was good, and
that the man was responsible, and
never for one instance acknowledged
any personal interest in the account.
Notes were accepted where the sig
nature was not that of the apparent
borrower, or his authorized agent.
In one case the hank advanced Three
Thousand Dollars ($3,000.00) on such
paper where the name OF the party
who appeared as principal. was writ
ten by a friend, and that, too. one
not authorized to so sign. No objec-
ton was offered to this by the bank
nor did it even take the trouble to
| notify the principal. Instead it ad-
vanced the money. Gladly.
These are but a few many such
examples which could be cited. Veri-
| ly, I now believe firmly in the old
saying. 1T is more blessed to give
than to receive"
Rehabilitation Work.
The work of re-organizing the
bank having been commenced three,
months after the bank closed its
doors, I deem it proper that a partial
statement should appear here con-
| cerning it, which make in justice
| to all.
| From such information as have
been able to gather the Chairman OF
the Committee and the Committee's