The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1911-04-08

.H. LOOENh I1On ELL.
This demand was expected by the
Receiver. inasmuch as the new Banking
Act provides that the assets of a bank
shall be turned over to the Examiner.
This provision of the new Banking law.
in the opinion Of many able lawyers,
should not have been inserted as it was,
but should have been passed in a separ.
ate Act so as to stand or fall by itself
without affecting the validity Of the
whole Banking law. Such opinions
were based ON the fear that this provi-
sion, which enabled the Examiner to
take possession of banks in the hands Of
Receivers appointed by the courts,
might be of very doubtful force, if not
wholly unconstitutional. The demand
Of the Examiner was clearly in the per-
Torrance of his duty, and was mo- in.
tended to be inimical t. the receiver
ship OF the Eureka County Bank. In
fact, the new Bank Examiner has been
fully infor med of the affairs in Eureka
and elsewhere. or, in other words. he is
a strong, capable man who is giving the
people of this State an actual protection
under the Banking laws. There was no
disposition on his part to interfere I'M.
necessarily with the local bank or its
receiver. provided the creditors of the
bank were being protected aud paid at
a minimum Of expense under an honest
administration. 1t is said that a most
thorough explanation Of the condition
of the management and expenses of the
local bank has been furnished volun-
tarily to the State Banking Board and
the Examiner, and that as a result of
the same. the Receiver has been sent a
letter of instructions as follows:
Bank Examiners Letter
Office of the State Banking Board
Carson City. Nevada. March 81, 1911.
Spencer Reynolds, Eureka, Nevada.
My Dear Mr.. Reynolds
In the Matter of the Eureka County
Bank:
This day l have telegraphed you as
follows: AS State Bank Examiner !
hereby make demand on you as Receiver
of the Eureka County Bank to turn owe
all assets. pursuant to provisions Of An
Act regulating Banking and other mat
ters relating thereto Please be gov
erned by my letter of instructions trans
mitted this day"
You will readily understand that an
der the terms of the new Banking Act
it was necessary for me to make this
formal demand upon you.
Agreeable to my recent conversation
with Judge Breen it is my desire to CO.
operate with you and Judge Breen in
the final contamination of your excel.
lent administration of this matter. /
At to.day's session Of the State Bank
ing Board. l presented all these matters
to the Board, aud they are in accord
with the views herein expressed. 1t was
the sense of the members Of the Board
that, without diverting from the re-.
quirements Of the new Banking Act,
these matters might be finally closed up
by you and Judge Breen. you acting
practically in the capacity of a deputy
or special agent under the Bank Exam
liner.
It is the view of the Board and myself
that an immediate distribution be made
of the funds now in your possession.
understand this likewise accords with
the vie WIS of yourself and Judge Breen.
Therefore, l instruct you to proceed
to make such distribution at
your earliest convenience. II Judge
Breen should hs of the opinion that any
order of the court should be necessary
in this whatever. l apprehsnd he will
make such order as he may deem proper.
Possibly he may entertain the view that
under the provisions of the new Bank
Act no order is necessary on the part OF
the court.
Until such time as the disbursement
has been made by you OF the moneys
and funds in your custody. a bond should
be given by you to me in a sum sufi-
cient to cover such funds. l request
that the bond be approved by Judge
Breen. / understand that q $4,000
bond will be sufficient TO cover the funds
now in your possession.
Ireouest that at your earliest conven-
fence you will transmit to me a brief
report of the property you now have on
hand, both real and personal, together