The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1910-04-02

OF them came forward to stop the con-
tinuance Of public calamity, and that,
too. in the face Of the following provi-
sions of an act of the Legislature of this
State approved March 13, 1909.
Here the Court read the following
provisions of the statutes:
Section l. Every officer, director, cashier,
managing member, manager. clerk, person.
party or agent OF any bank, banking corpora
tion, association or firm, banking house,
banking exchange. brokerage deposit COM
pany, private bank, and every person, com.
psny or corporation. engaged in whole or in
part in banking, brokerage, exchange or de-
posit business, in any way, who shall accept
or receive on deposit in such bank or banking
institution, as aforesaid, with or without in
terest, from any person. any money, bank
bills or notes. or certificates, or currency, OF
other notes, checks, bills, bonds, stocks,
drafts. or paper circulating as money, when
he knows, or has good reason to know. that
such person. bank, banking corporation. asso-
citation or firm. banking house, banking ex-
change, brokerage deposit company, or pri-
vate bank as aforesaid, is insolvent, and every
person knowing of such insolvency who shall
be accessory to, or permit. or connive at, or
assent to- the accepting or receiving on deposit
therein or thereby any such deposit as afore-
said, shall be guilty of felony, and punished
by imprisonment in the State Prison for not
less than one, nor more than 10 years.
Section 2. If any officer. director. cashier
or manager Of incorporated bank, having au-
thority to close any banking institution or to
prevent the reception of deposits therein. shall
not exercise such authority and prevent the
receipt of deposits therein when he knows
such bank is insolvent or in failing circum-
stances he shall be deemed to have assented
to the reception of any deposits received
therein. and the failure. suspension or invol.
untary liquidation of any such bank or bank
ing corporation within 80 days from and after
the time of receiving any deposit therein shall
be prima facie evidence of knowledge on the
part of such officer. director, cashier or man
ager that such bank was insovent or in
failing circumstances at the time such
deposit was received therein; provid-
ed, that if any director at any meeting
of the directors of any such corpora
tion held during the 80 days next preceding
the failure, suspension or involuntary liquida-
tion of any such bank or banking corpora
tion, shall record his vote to receive no more
dannaffa tbaratr 10 ofnca onch hapk ha ehall
not be deemed to have assented to the recep-
ton of any deposit in such bank, within the
meaning of this section.
Thus it would seem that not only the
Board Of Directors but every official con-
nected with the bank under the Sec
tons of the statutes just read are amen
able to the criminal laws of this State
for failing to give the necessary infor-
nation to the public of the insolvency
Of the institution in question. and it
would seem from the sworn testimony
given here to-day that not only have
the Eureka County Bank officials been
remiss in the performance of their duty
Oae tAot tDC ot0tO D0n hin6 oont0 Oa
Nevada seems to be far from blameless.
Here the Court read section A of the
General Banking Act.
Section A. Whenever it shall appear to
the State Banking Board, from any examina-
tion or report provided for by this Act, that
the capital of any corporation transacting a
hail k,,a cf 10 ift,n airad
or that such corporation is conducting its bust
ness in an unsafe or unauthorized manner, OF
is endangering the interests of its depositors,
or upon the failure of such corporation to
make any of the reports or statements re-
quired by the provisions of this Act or to
respects, the State Banking Board shall COM
municate the facts to the Attorney General,
who shall thereupon cause an application to be
made to the District Court Of the county
where such corporation maintains its bank
and is conducting its business or to any Judge
of said Court, for the appointment of q suit
able person as a receiver TO take charge of the
business assets and property of every kind Of
| said corporation and to wind up its affairs
provided, however, that If the Judge oil
Judges of the District Court of the county
where such application should be made be alb
sent therefrom at the time such application il
to be made, any Judge of the Supreme Court
may appoint such receiver. but all proceedings
in relation to such receivership thereafter
shall be had before the District Court, or q
Judge thereof, which might have appointed
such receiver in the first instance, and the
petition and the order appointing such re-
ceiyer shall be forthwith transmitted to the
Clerk of such District Court. II shall be suf-
6oient to authorize the appointment of . re.
ceiyer il any of the facts herein enumerated
| A. = ground for the application for receiver