The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1921-03-10
TRIAL BEGUN TODAY
TO UNSEAT JUDGE

Speaker Chandler of the house
presided over the first joint session of
the house and senate today when the
resolution to remove Judge Frank p.
Langan from Office came up for
hearing.
A brief resume of the high-lights of
the receivership follows:
The State Bank and Trust Com
pany closed its doors October 23, 1907.
Thereafter rehabilitation committee
was appointed, but 1t likewise failed
On May IS, 1908, in the First Judicial
District, County of Ormsby, Judge
Frank p. Langan appointed Frank L.
Wildes as receiver of the insolyent
company. At that time the bank as
sets appeared to be of sufficient value
to the court to justify fixing the bond
of the receiver at one million dollars,
for which amount a surety bond was
furnished. This amount was later re-
duced to s250,000, and still later to
100000, for which latter amount a
personal bond is now in effect. Ir-
regularities in connection with pre-
MUM on surety bond are referred to
on page of the Report of Investi-
CATION of Receivership of State Bank
and Trust Company" made in pur-
suance OF an act of legislature ap-
proved March 10. 1913, for which an
appropriation of $4,000 has been
made. A copy of said report is hereto
attached, and said report will herein
after be referred to as the Thatcher
report, it having been made by Hon.
George B. Thatcher. while he was at
torney general.
AT the time of its failure, the parent
institution at Carson City had
branches in Tonopah, Manhattan,
Goldfield and Blair While it appears
that the business of the Carson house
may have been conducted in accord
with sound banking principles, it
seems that the branches at Tonopah,
Manhattan, Goldfield and Blair must
have been infected by the speculative
atmosphere which permeated those
camps intheir boom days One in
stance is the loan by the Goldfield
branch to the Sullivan Trust Com
pany of almost 100000. Another in
stance was the construction of five
story bank building at Tonopah.
The actual cash taken over by the
receiver is reported by nim as ap-
proximately $4,000 from the Carson
bank, $33,60O from Goldfield, practi-
cally none from Tonopah, and, with
small amounts from Manhattan and
Blair. making a total of $5S,532.57.
October %. 1907. the books showed
assets and liabilities at 1851, ,707. In
July, 1908, the receiver reported the
book assets at s1,49S,04139, with an
estimated value of 1852, ,354.47, and the
liabilities were reported al approx
mately $1,0S0,000. including deposits
of $9SS,330.S9. The foregoing facts
and figures must subject the presi-
dent of the bank, T. B. Hickey, and
its directors, to much adverse criti-
cism. Incidentally. we find the name
of the present receiver amol & the list
of its directors. Yet the receiver does
not hesitate to report that "the presi-
dent and directors must lie under the
charge of fatal negligence. if nothing
more"
From May IS, 1908, to February s.,
1910, the quarterly reports submitted
by the receiver to the court (unveri-
fled. by the way) shows, starting with
cash and receipts of s66,4S9.22, total
receipts of $2O2. $3.50. and total ex-
penditures of $19S,S75.61, leaving only
S3,652.69 on hand. However, the
above expenditures included $685.
014.35 paid out in dividends Nos. l
and 2, of per cent each. From May
| IS, 1908, to February 1898, accord
ing to Thatcher report, the total re-
ceipts were 1898. S.392.31, and the total
disbursements $3S7,72S.35, leaving
cash on hand $1o.663S6. Said ex-
CONTINUED on Page Four)