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

Smith, w. E. Griffin, or to any of
the companies; the purpose of such
transfer 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 companies.
Respectfully.
State Banking Board of Nevada,
By ID. S. Dickerson,
Chairman.
Mr. Wan Fleet classed the Smith
loans, aggregating S242, 294.02, as
doubtful. and realizing that it would
be impossible for the bank to collect
the money in time of stress, was
very much alarmed over the stu
alton. Mr.. Van Fleet knew and
the board knew that the 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 i~nsolvent. On
the 10th of October, 1909, the
board was supplied by Mr.. Oscar
j.. Smith with a list and estimated
value of the assets of the Eureka
Investment company, which was as
follows:
Total assets Eureka Live
= stock Co. ......$ 345, 1886
Total assets Smith Bull
frog Investment Co. . 165, O42.9
|; Total assets Smith Bros.
Investment Co. 81, 1862
Eliminating the Smith Bullfrog
Investment company and Smith
Bros Investment Company. the
assets of the Eureka Livestock COM
pany, with which the board was
more or less conversant and all of
! the stock of which company was
pledged for the Smiths notes, the Sc
5 curities seemed ample for the loans.
, | believed and all the members of
t the board believe that with inn
proved conditions these securities
could be realized on and the bank
d placed in splendid condition. 1t was
o only within the past month that the
o board began to lose hope of saving
this bank. The failure of tie First
d National bank of Rhyolite, some
:. $751; OO of the stock of that bank
being held in the Eureka County
bank, causing the loss of practically
, that entire amount, stock held by
d the Eureka County, aggregating
G $500, 900, and the filing of suits
against the Smith interests, COM
PEELED the board to take immediate
action. AS Don as we saw that the
capital and suplus of the Eureka
County bank was likely to be wiped
out entirely. we closed its doors to
preserve its assets for depositors.
t | am convinced that with careful,
economical management of the
e affairs of the defunct bank, the de-
e positors will be paid 100 cents on
n the dollar, and the board is going
a to lend every assistance within
its power to the receiver of the banl
to this end.
Of As to the charge that the board ha:
1t been derelict in its duty. it is only
d necessary to refer to the fact thai
t the Bullfrog Bank & Trust company
which, on first examination, showed
y to be h~opelessly ~inslvent, with
scarcely sufficient assets to pay the
depositors one cent on the dollar, the
board closed its doors, had its bank
examiner, made the trustee fol-
10 depositors compelled the directors tc
ID relinquish all their claims on none,
ID they had deposited in the bank, an,
e. besides, put up several THOUSAND
is dollars out of their pockets, and with
re in 60 days paid the depositors 33 l.;
m per cent dividend with an assuranc,
he that they will receive between II
is and 100 cents on the dollar within
lie the year.
re The Bank of Pioneer was closeC
" and within 30 days, without tn,
is appointment of a receiver, the de
positors were paid dollar for dollar
re The Bank of Manhattan was force,
Iy by the board to go into voluntar.
ne liquidation and the depositors o
nc that institution will get dollar TO
dollar, rs was the case with Bank o
It Mazuma, whose depositors hav
NJ already been paid in full. With tn
Ill r. a.. ..,aJ ,ap ga~,nI,, InI.a..