The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1910-04-16
nICKERSON DEFINES THE
WORK OF THE BANKING
COMMISSION AT EUREKA

named companies, and in such form
as will apprise the board of the per.
sons or institutions to whom this in
d~ebtedness may be due, and the
amount due to each. We require fur
Their that you Immediately proceed to
transfer all of the assets of these com.
panies to the bank for Its protection,
unless these loans are within that
time; otherwise, amply secured tn the
satisfaction of the board. The condi-
ton which the board seeks to bring
about is not to be affected by the fact
that the debtors of the bank are in
%dividuais instead of these companies
lit still insists that all their assets be
turned over to the bank for the pro-
lection and security of the bank as
to all the loans made either TO Bert
l.. Smith, Oscar j. Smith, Minnie d.
Smith, w. F.. Griffin, or to any of the
companies; the purpose of such trans
fer being to devote all of said assets
to the use of the bank as security for
any loan made either to the Smiths,
or to any of the above named CON-
panies.
Respectfully,
STATE BANKING BOARD OF Ne
VADA.
By d. s. DICKERSON, Chairman.
Mr.. Van Fleet classed the Smith
loans, aggregating $242, 294.02, as
doubtful, and realizing that it would
be impossible for the bank to collect
the money in time of stress, was very
Van Fleet knew and the board knew
that the bank was in a shaky con-
dition, but neither he nor the board
could say, without full knowledge of
the value of the assets of the COM
panies whose stock and notes were
pledged to secure loans, that the bank
was insolvent. On the 9th of Dc
tober, 1909, the board was supplied
by Mr.. Oscar J. Smith with a list and
estimated value of the assets of the
Eureka Livestock company, the Smith
Bullfrog Brothers Investment company,
which was as follows:
Total assets Eureka Live
stock Co. .....--------$345,oo o.9o
Total assets Smith Bullfrog
Investment Co. ..-..--..---- 165,042.09
assets Smith Bros. In
vestment Co. .------.- S7,9S6.o2
: Eliminating the Smith Brothers In
vestment company and Smith Brothers
company, the assets of the
Livestock company, with
which the board was more or less con
and all of the stock of which
company was pledged for the Smiths
the securities seemed ample for
the loans. 1 believed and all the men,
bers of the board believed that with
improved conditions these securities
could be realized on and the bank placed
in splendid condition. Tt was only
the past month that the board
began to lose hope of saving this bank.
failure of the First National bank
of Rhyolite, some $15 900 of the stock
of that bank being held IN the Eureka
county bank, causing the loss IT prac-
tically that entire amount, and the de-
preciation of other bank stock held by
the Eureka county, aggregating $30,Ooo,
- IL Gl,,-, Of SrIfG AGAINST Inc l.
Smith interests, compelled The board
to take immediate action. AS soon
as we saw that the capital and sur
plus of the Eureka county bank was
likely to be wiped out entirely, we
closed its doors to preserve rs as
sets for the depositors. ] am con-
v;nced that with careful, economical
of the affairs OF the de-
funct bank, the 6epositors VIII be pald
100 cents on the dollar, and the board
is going to lend every assistance win
in its power to the receiver OF the
bank to this end.
AS to the charge that the board mas
been dereilct III ltS uuty, -
to refer to the fact that the
Bailfrog Bank & Trust company
which. on first examination, showed
to be hopelessly insolvent, with scarce
" sufficient assets TO pay the depositors
one cent on the dollar, the board ciosea
it's doors. had it's bank examiner MADE
trustee for the depositors, compelea
the directors to ~relinquish all Their
claims on money they had deposited IN
the bank, and besides, put up severai
thousand dollars out of their pockets
and within 60 days paid the depositors
SO Is per cent dividend with an as
surance that they will receive between
~ III uNAhln