The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1910-04-16
Board Issues Statement

tiles of the Eureka Livestock Company, the
Smith Brothers Investment Company, and
Smith Bullfrog Investment Company, each of
which appears to be a borrower from the Eu-
reka County Bank, and whose combined La
bilities to the bank are, in the opinion Of the
Board, greatly 10 excess of what the safety of
that institution could stand, and in excess of
the limit prescribed by law.
The affairs of the Eureka County Bank de-
mand that all the assets of these companies
should be transferred and conveyed to the
bank as security for these loans.
In order that there may be no misunder-
standing between you and the Board, we re-
quire to be furnished within 10 days from this
date a detailed statement showing the assets
and liabilities of each Of the above named
companies. and in such form as will apprise
the Board of the persons or institutions to
whom this indebtedness may be due, aud the
amount due to each. We require further that
you Immediately proceed to transfer all OF the
assets Of these companies to the bank for its
protection, unless these loans are within that
time; otherwise, amply secured to the salts
faction OF the Board. The condition which the
Board seeks to brig about Is not TO be affect
ed by the fact that the debtors Of the bank
are individuals instead Of these c~ompanies-it
still insists that all their assets be turned over
to the bank for the protection and security OF
the bank as to all the loans made either to
Bert l.. Smith. Oscar j. Smith, Minnie ID.
Smith, w. Z. Griffin. or to any of the COM
panies; the purpose of such transfer being to
de vote all Of said assets to the use Ut the bank
as security for any loan made either to the
Smiths, or to any of the above named COM
panies. Respectfully,
STATE BANKING BOARD OF NEVADA.
By d. Q. Dickinson, Chairman.
MIR. Van Fleet classed the Smith loans, ag-
gregating s242, 294. OF, as doubtful, and realiz-
ing that II would be impossible for the bank
to collect the money in time OF stress, was
was very much alarmed over the situation.
Mr.. Van Fleet knew, and the Board knew,
that tine bank was in a shaky condition, but
neither he nor the Board could say, without
full knowledge of the value Of the assets Of
the companies whose stock and notes were
pledged to secure loans, that the bank was in.
solvent. On the 10th Of October, 1909, the
Board was supplied by Oscar j. Smith with q
list and estimated value of the assets Of the
assets of the Eureka Live Stock Company.
the Smith Bullfrog Investment Company,
and the Smith Brothers Investment Com
pany. which was a. ~follows:,
Total assets Eureka Livestock Co. SS45, 1858. 90
Total assets Smith Bullfrog Inv. Co. l65. 042. 90
Total assets Smith Bros. INV. Co. 81, 1856. 50
Eliminating the Smith Bullfrog Investment
Company, and Smith Brothers Investment
Company. the assets of the Eureka Live Stock
Company, with which the Board was more OF
less conversant, and all OF the stock Of which
company was pledged for the Smiths notes,
the securities seemed ample for the loans.
| believed, and all the members Of the Board
believed, that with improved conditions these
securities could be realized on and the bank
placed in splendid condition. 1t was only
within the past month that the Board began
to lose hope Of saving this bank. The failure
Of the First National Bank Of Rhyolite, come
s15. 600 Of the stock Of that bank being held
in the Eureka County Bank, causing the loss
Of practically that entire amount, and the
depreciation of other bank stock held BY the
Eureka County Bank. agRregating SO. 900, and
the filing Of suits against the Smith interests,
compelled the Board to take Immediate action.
As coon as we saw that the capital and sur
plus Of the Eureka County Bank was likely to