Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1910-04-15

county DanK ana some OF them were
in a worse condition. A strict APP
plication of the new law would have
closed every one of these, and COM
ing as it would on top of what the
state had so recently undergone, fully
one-half the banks of the state
would have gone down, working
untold distress on its citizens and
making Nevada an object of scorn
to the balance of the country.
After much careful consideration,
the board resolved to build up in
stead of tearing down. With the
n exception of he Eureka County
bank, their plans were completely
successful, and that bank today will
pay more to its depositors than if
closed a year ago. AS to the banks
that were saved, they are among the
largest and strongest in the state,
deservedly enjoying the respect and
confidence of their depositors and
reaping the legitimate profits to
which they r entitled.
The Eureka county bank was n
of many in which we found excessive
loans which crippled the institution.
None of the large loans now on the
books of the Eureka county bank
were made subsequent to this board
assuming supervision of the banks
of the state. These loans while
crippling the bank, did not necces-
sarily render them insolvent. The
~solvency or insolvency of the bank
depended upon the goodness or
badness of the securities hypothi-
Gated for the loans. Immediately
after the examiner made his first eX-
animation of the bank the board
earnestly endeavored to determine
the value of these securities and to
that end the examiner made repeated
requests of the Smith brothers to
furnish him with a list OF the assets
of the Eureka County Live Stock CO.,
of the Smith Bullfrog Investment
company and of the Smith Brother
Investment company, whose stock
were pledged for loans and ordered
hat the loans be reduced at once t,
within legal limit. Failing t,
receive a list of the assets of the
companies above named, the boarC
called Mr.. Oscar j. Smith and Mr.
Bert l.. Smith before them at {
meeting in Carson City and demand
ed that these lists be furnished
which the Smith brothers promised
to do at once. Later the following
letter was sent the Smiths:
October 7th, 1909.
I Mr.. Oscar j. Smith, President
l Eureka County Bank, Eureka, New
u Dear Sir:
The state banking board from tn
> examination of the affairs of tn,
Eureka County bank, has found i
: necessary to be specifically advised
! as to the assets and liabilities of tn,
Eureka Livestock company, tn,
. Smith Brothers Investment con
D pany, each of which appears to be
. borrower from the Eureka Count
bank, and whose combined liabilitie
I to the bank are, in the opinion G
, the board, greatly in excess of wha
| the safety of that institution coul
stand, and in excess of the limi
T, prescribed by law.
The affairs of the Eureka Count,
y bank demand that all the assets o
l these companies should be trans
ferred and conveyed to the bank a
security for these loans.
Z In order that there may be n
I misunderstanding between you an
the board, we require to be furnishe
within 10 days from this date a dc
Z tailed statement showing the asset
!" and liabilities of each of the abov
named companies, and in such forr
{ as will apprise the board of tn
/ persons or institutions to whom tn.
/ indebtedness may be due, and tn
J. amount due to each. We requir
> further that you %immediatel
T porcccd to transfer all of the asset
Is of these companies to the bank fc
II its perfection. unless these loans al
Is within that time; otherwise, ampl
c secured to the satisfaction of III
q board. The condition which III
e board seeks TO bring about is not
c be affected by the fact that the deb
70 ors of the bank are individuals II
atraI Of tbpap p~npnnanioc 81 a;