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

Stock Company will fully pay the indebtedness of the Eureka Live
Stock Company to the bank"
The Appointment of a Receiver
On Tuesday, March 30, Judge Breen called a meeting OF
depositors to assist by suggestion in the matter OF the appoint
ment Of a suitable person for Receiver of the Eureka County BANK
Some 100000 or $780, 900 of deposits were represented at the meet
ing. Judge Breen explained the difficulties before him in conse-
quence of our limited population and the few who could be found
locally who are familiar with banking Judge Breen also set forth that
under the sworn statement of the Bank Examiner, the few who were
available might be Ineligible because Of their neglect to make
known the insolvency of the bank, though having full knowledge oil
such insolvency for months and months that to appoint a man who
had such knowledge, and neglected what would seem to be his duty,
for SO long a time, and thus lead to the loss by depoAtofs' big ana
little. of large sums of money, would be by him and bis Court an
endorsement of illegal methods, al endorsement of a violation OF
the law, and that he would resign his Office before such a charge
could be laid at the door of his Court
Judge Breen's position was unanimously approved, and it was
agreed that he should wire the Scheeline Banking and Trust Com
pany of Reno, Nevada, as to whether it would accept the appoint
ment or not This was done with the result shown by the following
kilograms:
Eureka, Nevada. March as-scheehne Banking & Trust Com
pany, Reno, Nevada: Will scheeine Banking s. Trust Company
accept appointment a receiver of Eureka County Bank If nt'
please suggest two or three reliable and competent persons. Answer.
PETER BREEN
Rem Nevada. March 2e-Hon. Peter Breen. Eureka, Nevada:
Are considering your proposal Will reply early tomorrow.
scHEELNE BANKING & TRUST COMPANY
Reno. Nevada, March so-Hon Peter Brsen, Eureka. Nevada:
How much Of bond will be required and what compensation will the
Court allow. If necessary will leave for Eureka tonight.
Eureka, Nevada, March U-Scheenne bankhng % lruss onhPany
Reno, Nevada: Compensation fixed by State Board. Bond 100000 ito
$4,000. Come at nce. Answer. FETER DhhEN
Reno. Nevada, March so-Hon. Peter Breen. Eureka, Nevada:
Will leave tonight for Eureka NJ scHEEIlSE
Eko, Nevada, March 81-Hon. Peter Breen, Eureka, Nevada:
Regret that after coming SC far that 1 ar unable to get % Eureka.
Means of getting here seem extra hard with high charges from here
Regret that 1 am unable to accept your offer after coming SO lar.
Your confidence fully appreciated. M scHEELNE
But upon ascertaining, unfortunately, that the Scheeline Bank
ing and Trust Company declined the appointment, another meeting
of depostors was at once called in chambers on Friday, April
l. The large room was crowded, and In the nelghborhood Oh
$1,000 was represented.
The situation having been explained to the depostors, a motion
was unanimously adopted that Judge Breen communicate with the
Henderson Banking Company of Eko on the allimportant subject,
and the following wire was sent:
Eureka. Nevada. April Henderson Banking Company. Exc.
Nevada: Dan and will Henderson Banking Company accept appoint
ment as receiver of Eureka County Bank. Bond 1000 o. 10000 If
moi, please suggest two or three reliable persons Answer.
PETER PREEs. Judge
The question came up as to whether the Court could legally
appoint an official OF the insolvent corporation as receiver. The
Judge said it was very doubtful, and read from a leading authority
extracts as follows on the subject:
1.-THE Court will not in general appoint as receiver of a corpora
ton any one who has been officially and responsibility connected with
the Encouragement of the companys affairs, which has rendered
necessary the appointment of a receiver, nor will an officer of a cor
poration whose interest IS an individual may conflict with those of
the body of stockholders, be appointed as receiver"
Citing a great many cases from Federal and State Courts,
again:
"The person appointed receiver should, as a rule, be an indie
pendent and disinterested person, and impartial and Indifferent as
to the parties to The controversy"
Again: "The Court will not appoint a person, however we'll
qualified in other respects, whose interest in the subject matter of
the controversy or relations with the parties might influence the
administration of the trust"
Again: "The Court will not in general appoint a person receiver
who has been engaged in transactions either unlawful or in breach
of trust"
Judge Breen said that if the Bank Examiners sworn statement
be true, which of the officers of the Eureka County Bank is it who
have not been engaged in unlawful transacions-say, in receiving
the money Of depostors for months, when it was known the
bank was insolvent and could not reimburce depositors? And
which of the officers is it that does not come within the foregoing
i~nhibiions?
Our statute provides that the Court shall appoint a suitable
person receiver, and the sound discretion Of the Court should be
called into play in determining who is a suitable person.
Additional Statement of Deputy At percentage o n the dollar than they
tornsy General would have received had the bank been
In an interview with q representative closed . few months ago.