Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1908-07-24
THE BANK AFFAIR

The first and partial report by Re
ccivcr Wildcs on the condition of the
State Bank and Trust company, which
appears in this impression of the News
will be read carefully by every creditor
OF the defunct hank and also thousands
of others who have been effected by the
failure of the institution. 1t is the first
thing from this Gomorrah which bears
the seal and impress of authenticity and
Mr.. Wildcs not only makes specific
charges but ~SubstantiatcS them, and
then goes further and says that this is
only the beginning, II partial report.
Throughout the report he dwells upon
the uufamiliarity of the officers of the
institutions with banking and acts
either of omission or commission which
resulted d~isastrously tn the institution.
He then goes further and charges not
only gross betrayal of confidence by
certain officials but grating of the
most approved type. In it all there is
no mincing of words, nothing ambigu.
Gus; it is Il report straight from the
shoulder and written in plain. unmis.
taxable English.
The greatest condemnation is for the
GOldflcld branch of the bank where the
receiver says II find absolute neglect on
all sides. Deeds were ~unrccOrdcd, valid
obligations allowed t o accrue unncccs.
sarily, thousands of shares of mining
stock not Endorsed, carclcsSncsS on
every hand in matter, of vital import
ance, etc" But probably the most seri
Gus charge and one which will rebound
to the benefit of the creditors of til,
institution if followed up, is thai
dividends We're based upon fictitiou:
carnings-carnings which did not exist
and by GOOD bookkeeping tremendous
losses were made to appear rs profits
which later found their way into tn.
dividend account. y q = = and diStrib
uted to the stockholders of the bank.
This is one of the most startling q
the charges made ana under it div
idcnds so paid likely could I've reserve
at law to the benefit of the creditors.
The failing of the bank is laid ut tn
door Of making loans OIL mining stoc
securities by the receiver; especially o
improved securities and he particr
~larizcs the Sullivan loan of 1887. O0t
Also the reckless loans oft-timcs Will
ont any security whatever. AS n
example of the standard of the officer
employed. he cites one instance whcr
one of them carried an account in tn
name of Il friend, making an ovcrdraf
for q large amount ut the bank. An
then the final act in the tragedy wllcr
the receiver states that he is convince
and II substantictc his assertion, tina
certain persons connected with the ban
received Small favOrs for big loans.
In other words persons connected wit
the bank received gifts Of certain stOc
for loans of money from the dcfunct IL
, stitution. Along this line suit has bee
started at Goldiicld by Mr.. Wilde
| against L. b. Hickey. president of til
bank. demanding Il large block ,
Kcanc- Wonder stock which it is allcgc
Mr., Hickey received to make that loar
: Another point which should |
covered, in justice to nll. as Mr.. Wilde
puts it. is the work of the rchabilit;
tion committee. Tho members of tia
] BODY were III the right track in the
work hut it is hardly possible the
realized the hcrculCan and hopeless tus
! undertaken. The work and charg,
have been justified now if not before.
5 Tho mess smells to the high HEAVIER
and every stir and poke makes il wors,
D but let the poking continue. the poop
u are entitled to n full accounting and
: must bc made regardless Of where Il
. chips may fall, If there is II chancc
legal liability, strength to the arm
! Mr.. Wildcs that he may find and cl
7 force It; for he has the power Of Il
;. people behind him and justice ON h
side. Carson News.