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

What was to be done? Was the
bank to be closed forthwith? AS
the result of such a course the de-
positors would have lost practically
every cent. The failure would have
been a complete smash. The Smiths
were called before the board and
instructed as to what they must do
or suffer the bank to be closed. The
demand IA made upon them that
all the securities in the livestock
company they owned - and it
amounted to a very large sum
should be endorsed over to the bank.
The same demand was made as to
other stocks, real estate, etc, in
fact the Smiths were to turn over
to the bank everything they possessed
for the protection of depositors. To
negotiate these, transactions re-
quired time, the calling of stock
holders meetings. etc, With the
understanding and promise that
these demands would be complied
with, the time that seemed necessary
was given. From time to time the
Smiths were called before the board
and always reported progress. In
fact they had a deal under way at
one time that was to realize large
amount of money but time to con-
summate it was necessary.
In the meantime the Smith lease
on the Pioneer at the camp of that
name was arranged, the Eureka
County bank would profit. Then
the cattle selling season was coming
on, when the big loan to the Eureka
cattle company was to be liquidated.
The Smith brothers owned very
large herds of sheep and the wool
crop was also to go to reduce their
Indebtedness to the bank. Alto
gether, the prospects we're good for
a very large reduction of the Smith
brothers obligations to the Eureka
bank, if only sufficient time were
given. The board kept in close
touch with all these affairs and as
sisted the Smiths wherever possible.
The Smiths surrendered to Eureka
County bank 205 shares of stock of
that institution and in time, paid a
large amount from the sale of that
stock, as had been arranged. The
Pioneer lease, however, got into
legal tangles, its dividend, which
had been declared, was enjoined
and the Smiths have to this time
received nothing from their interest
therein.
Before other deals were consum-
mated which the board had in hands,
the national bank examiner closed
the Smiths First National bank at
Rhyolite.. This threatened a run
on their Eureka bank, and the bank
ing board decided to close that in
stitution at once
Judge Peter Breen, in a grand
stand play at Eureka, in receiver
ship proceedings, censured the bank
ing board for not having acted
sooner, saying depositors should
have been warned so that they would
have not made their deposits in the
bank. This statement was entirely
gratuitous and without knowledge
of the facts. The bank examiner
had testified that months before he
had made a statement to the board
showing its insolvency, but he was
not permitted to explain why the
board had delayed in closing the
: bank, and Judge Brcen took this
partial statement as a prctcxt for
%lecturing the banking board. Re-
suits will disclose that the action of
the banking board was not only war
ranted but wise, for depositors will
now receive perhaps 60 to rs per
cent of the amount. Judge Brecn
in making his talk when the people
were aroused and excited, was only
playing to the gallery, and in time
he will realize the injustice he has
done the board.
Every thought and act Of the
banking board was in the interest of
depositors, and the records of the
meetings of the state banking board
will disclose the fact that the board
will do everything in its power to
recover the money of depositors
before forcing the bank into liquid
alton. AS for the Smiths, instead of
protecting them, the board had fully
decided uDOn D~rOSccutinU tbpn, tn