14590. Bank of Manhattan (Manhattan, NV)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 1, 1910*
Location: Manhattan, Nevada (38.539, -117.073)

Metadata

Model: gpt-5-mini
Short Digest: 66a872b2

Response Measures

None

Description

Contemporary articles state the Bank of Manhattan was forced by the board to go into voluntary liquidation and closed its doors; depositors were paid dollar for dollar. No run is described. Closure was voluntary/compelled by the state banking board in April 1910 and the bank remained closed (liquidated).

Events (1)

1. April 1, 1910* Suspension

Cause: Voluntary Liquidation
Cause Details: State Banking Board forced the bank into voluntary liquidation amid shaky condition of Smith-controlled loans and related losses; bank closed and went into liquidation with deposits paid in full or being paid out by May 1910.
Newspaper Excerpt: The Bank of Manhattan was forced by the board to go into voluntary liquidation and the depositors of that institution will get dollar for dollar.
Source: newspapers

Newspaper Articles (7)

1. April 8, 1910 Weekly Independent Elko, NV

Article from Weekly Independent, April 8, 1910

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# OSCAR J. SMITH INTERVIEWED (Continued from page 4.) of them to the extent of fraction of a cent. We have a lease at Pioneer, oil lands in southern California and other properties, any one of which should pull out, not only the banks, but ourselves, and that within a very few months. The affairs of the banks will be closed up without any expense other than that which is absolutely. The failure was due to our investments, particularly in southern Nevada, many of which proved disastrous. We worked in the face of innumerable obstacles, the first being the San Francisco fire, which caused a shrinkage in our securities amounting to a half million dollars. The fall in the price of our Goldfield holdings, due to the labor troubles there, caught us for a couple of hundred thousand dollars more and, the great panic completed the disaster. Since that we have struggled to get our heads above water and I think we should have succeeded in time. But the crash has come now and all we will do the rest of our days, if it requires our remaining years, will be to make everybody square, and this will, we hope, require only a few months. Then, and only then, we will endeavor to repair our individual fortunes. I want to say this, that I am in close touch with the banking institutions throughout the state and all of them are in most prosperous condition, especially those of Reno, which are as strong as the rock of Gibraltar. The First National Bank of Elko, with which my brother and myself were once prominently connected, is as solvent as any other banking institution in Nevada. The Bank of Manhattan, which we controlled has been liquidated without a loss to a single individual. Nearly all accounts have been paid and there is more than enough gold coin in the vaults to pay everything that remains and then some."

2. April 14, 1910 Daily Independent Elko, NV

Article from Daily Independent, April 14, 1910

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its power to the receiver of the bank to this end. As to the charge that the board has been derelict in its duty, it is only necessary to refer to the fact that the Bullfrog Bank & Trust company, which, on first examination, showed to be hopelessly inslvent, with scarecly sufficient assets to pay the depositors one cent on the dollar, the board closed its doors, had its bank examiner, made the trustee for depositors compelled the directors to relinquish all their claims on money they had deposited in the bank, and besides, put up several thousand dollars out of their pockets, and within 60 days paid the depositors 33 1-3 per cent dividend with an assurance that they will receive between 75 and 100 cents on the dollar within the year. The Bank of Pioneer was closed and within 30 days, without the appointment of a receiver, the depositors were paid dollar for dollar. The Bank of Manhattan was forced by the board to go into voluntary liquidation and the depositors of that institution will get dollar for dollar, as was the case with Bank of Mazuma, whose depositors have already been paid in full. With the facts in mind, I can sarcely believe that a fair-minded public will charge the state banking board with dereliction of duty." D. S. Dickerson, Chairman Banking Board.

3. April 15, 1910 Weekly Independent Elko, NV

Article from Weekly Independent, April 15, 1910

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# STATEMENT BY D. S. DICKERSON Respectfully, State Banking Board of Nevada, By D. S. Dickerson, Chairman,. Mr. Van Fleet classed the Smith loans, aggregating $242,294.02, as doubtful, and realizing that it would be impossible for the bank to collect the money in time of stress, was very much alarmed over the situation. Mr. Van Fleet knew and the board knew that the bank was in a shaky condition, but neither he, nor the board could say, without full knowledge of the value of the assets of the companies whose stock and notes were pledged to secure loans, that the bank was insolvent. On the 16th of October, 1909, the board was supplied by Mr. Oscar J. Smith with a list and estimated value of the assets of the Eureka Investment company, which was as follows: Total assets Eureka Livestock Co. . . . . . $ 345,858.96 Total assets Smith Bullfrog Investment Co. 165,042.90 Total assets Smith Bros'. Investment Co. . . .87,986.52 Eliminating the Smith Bullfrog Investment company and Smith Bros.' Investment Company, the assets of the Eureka Livestock company, with which the board was more or less conversant and all of the stock of which company was pledged for the Smiths' notes, the securities seemed ample for the loans. I believed and all the members of the board believe that with improved conditions these securities could be realized on and the bank placed in splendid condition. It was only within the past month that the board began to lose hope of saving this bank. The failure of te First National bank of Rhyolite, some $15,000 of the stock of that bank being held in the Eureka County bank, causing the loss of practically that entire amount, stock held by the Eureka County, aggregating $300,000, and the filing of suits against the Smith interests, compelled the board to take immediate action. As soon as we saw that the capital and suplus of the Eureka County bank was likely to be wiped out entirely, we closed its doors to preserve its assets for depositors. I am convinced that with careful, economical management of the affairs of the defunct bank, the depositors will be paid 100 cents on the dollar, and the board is going to lend every assistance within its power to the receiver of the bank to this end. As to the charge that the board has been derelict in its duty, it is only necessary to refer to the fact that the Bullfrog Bank & Trust company, which, on first examination, showed to be hopelessly insolvent, with scarecly sufficient assets to pay the depositors one cent on the dollar, the board closed its doors, had its bank examiner, made the trustee for depositors compelled the directors to relinquish all their claims on money they had deposited in the bank, and besides, put up several thousand dollars out of their pockets, and within 60 days paid the depositors 33 1-3 per cent dividend with an assurance that they will receive between 75 and 100 cents on the dollar within the year. The Bank of Pioneer was closed and within 30 days, without the appointment of a receiver, the depositors were paid dollar for dollar. The Bank of Manhattan was forced by the board to go into voluntary liquidation and the depositors of that institution will get dollar for dollar, as was the case with Bank of Mazuma, whose depositors have already been paid in full. With the facts in mind, I can sarcely believe

4. April 15, 1910 Weekly Independent Elko, NV

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THE EUREKA BANK BEING DRAGGED INTO POLITICS We may now expect to see all the republican papers of the state, following the lead of the Reno Gazette, lay the blame for the failure of the Eureka County bank*upon Governor Dickerson and the state "banking board, the object being, of [course, to discredit the democratic administration, the governor and the members of the board. An effort will be made to so magnify the incident as to make of it a campaign issue, and the people should be advised in advance. The present board of bank commissioners are in no_wise or_in no degree responsible for the Eureka County bank failure. The new banking law_went into effect, now about a year ago, and the first meeting of the banking board was April 14. The new law under which the board was working made various radical changes in methods and requirements, and it became apparent at once that it would take time for the banks of the state to adjust themselves to the new law. Some of the banks-even those which were doing the largest business and supposedly the strongest were in bad condition, owing to too liberal management, [and the laxity of the old law and the inefficiency of the bank examiner's department. The board, construing the banking law_as an act not only to protect depositors, but in so doing also to help the banks themselves, found it advisable to proceed cautiously but deal firmly with the delinquents. Reports were at once called [for and carefully examined and analyzed. On the board were two bankers beside the bank examiner. The condition of the banks of Nevada as disclosed by these reports was such, that if the board had acted under the strict letter of the new banking law, it would have had to close about 50 per cent of the state banks then doing business. This, in addition to the depressed condition of affairs in Nevada due. to the general panic, would have been a calamity nothing short of a crime, and it would have brought down upon the heads of the banking board just and overwhelming public condemnation. Imperative instructions were at once sent to the delinquent banks and the bank examiner proceeded immediately to check them up. It is not necessary or advisable to go into detail and name these banks, for with the time and assistance given them by the banking board they gradually adjusted their affairs to conform to the new law and placed themselves on a sound footing and are now doing a prosperous business. There were four banks, however that were in a particularly bad way. One of these was a comparatively large bank-the Eureka County bank, a bank at Manhattan and two in the Bullfrog district. The latter two were closed the bank-

5. April 16, 1910 The Eureka Sentinel Eureka, Tonopah, NV

Article from The Eureka Sentinel, April 16, 1910

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be wiped out entirely, we closed its doors to preserve its assets for the depositors. I am convinced that with careful, economical man- agement of the affairs of the defunct bank, the depositors will be paid 100 cents on the dollar, and the Board is going to lend every assistance within its power to the Receiver of the bank to this end. As to the charge that the Board has been derelict in its duty, it is only necessary to re- fer to the fact that the Bullfrog Bank & Trust Company, which, on first examination, showed to be hopelessly insolvent, with scarcely suf- ficient assets to pay the depositors one cent on the dollar, the Board closed its doors, had its Bank Examiner made Trustee for the deposi- tors, compelled the directors to relinquish all their claims on money they had deposited in in the bank, and besides, put up several thou- sand dollars out of their pockets, and within 60 days paid the depositors 33⅓ per cent divi- dend with an assurance that they will receive between 75 and 100 cents on the dollar within the year. The Bank of Pioneer was closed and within 30 days, without the appointment of a Re- ceiver, the depositors were paid dollar for dollar. The Bank of Manhattan was forced by the Board to go into voluntary liquidation and the depositors of that institution will get dollar for dollar, as was the case with the Bank of Mazuma, whose depositors have already been paid in full. With the facts in mind, I can scarcely be- lieve that a fair minded public will charge the State Banking Board with dereliction of duty. D. S. DICKERSON, Chairman Banking Board.

6. May 27, 1910 Weekly Independent Elko, NV

Article from Weekly Independent, May 27, 1910

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# BANK PAYS IN FULL The bank of Manhattan closed its doors the first of the week and Cashier Van Harlingen has about got the affairs of the institution settled up. The bank, which was one of a chain of banks controlled by the Smiths, closed voluntarily and paid up dollar for dollar, the reason for closing being given as lack of patronage. During the financial panic of 1907-1908 the

7. July 19, 1910 Tonopah Daily Bonanza Tonopah, NV

Article from Tonopah Daily Bonanza, July 19, 1910

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MANHATTAN BANK WINS THREE CASES BY'DEFAULT SECURES JUDGMENT ON NOTES DUE TOGETHER WITH INTEREST. The Bank of Manhattan yesterday received judgment in three cases in the fifth judicial district court on notes, the judgments being taken by default. The bank was represented by C. O. Burkert, the Manhattan attorney. In the case against S. S. Williams judgment was awarded the bank for about $14,000, which includes the principal and interest, also attorneys' fees amounting to $1,000. Judgment was secured in the case against D. H. Mordecai for about $3,200, which includes both principal and interest, also the sum of $375 as attorneys fees. In the matter against the Eureka Manhattan Mining company judg1 ment was secured for about $3,500, representing both principal and interest and attorneys' fee. amount1 ing to $375. 1 Attorney Burkert was present in court for the bank, which sent out notice some time ago tha: it would cease to do business. It is believed that all the depositors have d been paid off in full, as the suspension of operations was 'volunf tary.