Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1910-01-17
Judge Langan Hands Down Import
ant Decision Today and Decides
Action of Receiver WildeS to Re-
cover From Directors of Defunct
Bank is Legal

In the District Court this mornin
Horation Allen. representing Franl
l.. Wildes, receiver of the State Banl
q Trust Company, prsented motion
and a petition asking that the bond o
Receiver Wildes of S250,O0o be reduc
ed to the sum of 100000 on thu
grounds That the present bond is en-
tireiy too high and that the amour
asked for is ample to protect any anC
AL funds handled by the receiver o.
the defunct institution.
Several Of the directors of the State
Bank e. Trust Company were repre-
sented In court by their attorneys
Considerable of an argument arose
over the fact that the depositors OF
tae bank, which are parties in the or
iginal proceedings in the receivrship
matter, had not been served with a
notice Of this action.
G. Il. Mack, of the firm of Mack &
Green. attorneys for the receiver,
stated that they had no knowledge
that their client wished reduction
In his bond until Saturday afternoon.
too late to become familiar with the
conditions. Further than that notice
had been served upon them by Mr..
Allen, attorney for the receiver in this
matter, and that they had not been
consulted regarding the matter by Mr..
wildes.
Judge Massey. representing direct
ors Bender and Mapes of the bank
stated that he considered that his
clients should aave been notified of
the action. After considerable dis
cussion and the statement by Mr..
Allen that he had notified ali parties
that had a legal right to be notified
and explained further that ne was
representing Mr.. Wildes in this act
ion and had no connection whatever
with Mr.. Mack and Green, the receiv-
ers attorneys the court ruled that he
would continue the hearing OF the
motion and petition for five days and
that In the meantime Attorney Allen
should notify the directors OF the
State Bank of his contemplated action
in the matter. The judge stated that
he was Of tae opinion that all parties
interested In the matter should be
notified and be Given chance to OBJ
iect to the reduction in the bond II
they so desired.
This morning in the district court
Judge Frank p. Langan overruled the
demurrers in the case OF F. l.. Wildes'
receiver of the State Bank and Trust
Company VS.. The Directors of the
State Bank.
The action was brought to recover
losses of he bank through the negli'
cence of the directors who are charg'
ed by the plaintiff, F. L. Wildes, with
o,rsmanagemenr OF the funds of the
hank and the conducting of the same
from Jauary I, 1896 in manner un
safe and ruinous.
The plaintiff further asserted that
the directors had failed to exercise
reasonable degree Of skillful and dii-
igent attention as regarded the man
asement OF the institution and tae
superintendency Of the same WHEREBY
numerous and very great losses rusult
cd to the depositors OF the institu
tion.
To this complaint the defendants
the directors OF the bank, filed de
murfers. setting forth that the fact;
sHerein contained were insufiicien
TO constitute a cause Of action ant
that the court had no jurisdiction o
me subject matter OF the action AM
further that the plaintiff, F. l.. WHITES
Receiver OF tae state Bank and Trus
Company, had no legal right to sue
In his decision the Court rule'
that the last two contentious a.
stated above had been decided by tn
Supreme Court Of the State OF Ne
vada and that there Is no defect Il
the title OF the Character in which n
sues
The Court further holds that tn
action brought Is one OF equity agains