Click image to open full size in new tab
Article Text
# 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
