Reno National Bank (Reno, NV)

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NEVADA MERCHANTS BENEFIT BY PLAN

Closing of Banks Causes Surprise Events

RENO. NEV. merchants and discovered unexpected in what started out to round from and spun suits only urged up the closed banks. was and on of citizens. All hoarded suddenly released from sugar and simbegan to rush into circulation. Police Chief M. Kirley feared alert footpads, armed with lengths rubber nose filled with birdshot, would the "holiday. He urged citizens leave their station safe. Thousands dollars was "on deposit" there today. One "holiday victim" was Delbert Hammond, who recently sold little business-a cozy saloonfor $7,000. Today be still had the was locked the Reno Naone "holiday and Hammond his was eating credit. "It's philosophised Ham"Twenty years ago when belonged the club. There were the "George the only one who has his George's 12 are closed."

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(Continued from Page bank in the city to remain open. stacked up $3,000,000 in cash. "Come get invited President Richard Kirnan. "Come again he urged closing time. Others, whose quiet withdrawals in recent weeks was in part responsible for the "moratorium," also found themselves with cash in their pockets or hidden in their sugarbowls. The gambling halls had their thousands of dollars kept pay off winning streaks. $17,000,000 Locked There was at least $17,000,000 locked up in the closed banks. But there was $3,000,000 more in the First National, and thousands on thousands in pockets of citizens. All the cash, so suddenly released from strongholds, began to rush into circulation.

Police Chief Kirkley feared footpads, armed with lengths of rubber hose filled would join the "holiday." He urged citizens to leave their cash in the station safe. Thousands of dollars "on deposit" there today. One "holiday victim." was Delbert Hammond. recently sold his nice little cozy

Today he still had the $7,000. but was locked up in the Reno National. one of the "holiday and Hammond eating his meals on credit.

"It's philosophized Hammond. "Twenty years ago when Tonopah gambler belonged the Elks club. There millionaires in the club Anent Wingfield "George Wingfield the only who still has his George's 12 banks are closed." Ed Voelitti, finishing course international law at the University Ed's over visiting him. Voelitti's partner, for Ed the other Ed's on the Closing of the banks leftfor and order when some $15,000 in election bets cancelled. Betting only form of bling against the law in Unable due to their funds being on "holiday", the wagerers called off their agreements. Due to the tremendous amount of cash in circulation, Reno residents probably will pull through the period moratorium without sufferfor lack of money.

MILD RUN ON BANK DEPOSITS BEGIN Nov. mild on the First National Bank. which started yesterday when Reno's other two banks closed for two weeks' period, ended today and depositors began opennew accounts. Most of the unrest which markannouncement of the banking holiday had settled and business returned to normal basis Fewpeople on the streets. who withdrew Many persons from the First National money yesterday made deposits today.

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Plan of Reopening Banks Through Creation Of Consolidated Institution Will Be Told

The meeting is the forerunner of similar gatherings to be held in all communities where Wingfield banks are located.

The meeting in Sparks will be followed by a gathering of bank depositors of the Henderson Banking corporation in Elko Tuesday noon and of the Wells State Bank Tuesday night. The Winnemucca meeting is likely to be held Wednesday noon.

Three meetings are likely in Reno, one for the depositors of the Reno National and the Bank of Nevada Savings & Trust company, another for the United Nevada and the third for the Riverside Bank. However, the dates of the Reno meetings have not been set.

In each instance depositors will be told of Nevada banking difficulties and of the way out, through the consolidated bank plan.

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Nevada Bank Holiday Is Extended 3 Weeks

Reno, Nev.-A "bank and business holiday" officially proclaimed November for two weeks was extended for the second time by Gov. Fred Balzar. The new debt moratorium will be three weeks. Meanwhile depositors speeded plans to reorganize 12 closed banks owned by the George Wingfield

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W. J. TOBIN BECOMES RENO BANK RECEIVER

Walter J. Tobin, former Billings resident, has taken over his duties as receiver of the Reno National bank at Reno, Nev. His appointment to the position was made because of his experience in banking work at Washington, D. C. While here, Mr. Tobin was manager of the H. B. Lake & Co. He left last summer for Great Falls to assoclated with the Great Falls branch of the same firm.

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BANK'S POSTS NOTICE CONDITION

The Reno National Bank had assets and clusive capital stock, surplus and undivided profits of December when was taken over by the federal bank according to notice posted at the bank this morning. Cash on hand at that time, the port amounted to The other assets included bills receivable amounting to and other assets including the banking house amounted to It was explained by Tobin, federal receiver, that the assets listed included everything turned over to him including items that were considered lost and doubtful in the classification of the assets made by the bank officials when the banking holiday was declared. The unsecured liabilities. including the deposits, amounted to on December the report shows, while the secured deposits amounted to Bills payable amountto and were secured by pledge of assets of the bank aggregating $5,206,516.06.

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suit growing out of the closure the Reno National Bank, was filed in the district court today, with Slutter seeking to gain possession of $17,000 promissory note he alleges the bank and W. its ceiver, refuse turn over to him. James Boyd Slutter. The note, signed by and Lena Juniper, deposited in the bank in 1929 by Slutter. brother of the plaintiff, to whom was later assigned. "The note deposited the complaint reads, the sole purpose of the bank receiving the payments due that they might be deposited to Slutter's credit." Slutter alleges that both Tobin and the bank assume any responsibility for delivery note to him, and adds that could he gain possession of the note Mr. and Mrs. Juniper would pay balance $7500 still due He asks for the court either to order the bank to turn the note over to him or for an award of $7500 damages plus court costs and interest from November 23, 1932.

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WARNING TO NON-SIGNING DEPOSITORS SIGNING DEPOSITORS

Those opposing the present reorganization plan for the closed Wingfield banks have steadfastly maintained that before that reorganization plan can be put into effect the non-signing depositor must be paid in CASH his pro rata of the fair value of the assets of the bank in which he is a depositor and that he cannot be forced to take stock in either the proposed new bank or mortgage company as part payment for his deposit credit.

A letter recently received from the Comptroller of the Currency at Washington, D. C., supports our contentions. The letter was published in the Gazette June 6th and 7th, and in part said: "As it stands now, in event the reorganization and consolidation becomes operative, it can only be effective as against the depositors of either of the national banks to the extent that they have individually consented". . . "This department has no objection to the reorganization or consolidation if it can be carried out by voluntary agreement, but it has been our policy under all the reorganizations provided for under section 207 of the Bank Conservation Act, to not permit any reorganization which forces the depositors to accept stock in a bank, in lieu of their deposits."

NON-SIGNING DEPOSITORS will receive more CASH than will the signing depositors. Your payments will not be deferred over a period of years and you will not have to take stock in the new bank and mortgage company.

The letter recently received from the Comptroller of Currency, Washington, D. C., proves conclusively that you signing depositors have placed yourselves in a most unfavorable position by signing away your rights to your deposits in the closed Wingfield banks.

Your relief now lies in REFUSING to sign the post card asking for a "reasonable" extension of time. If you refuse to sign the post card, you can demand that you be paid in CASH your pro rata of the fair value of the assets of the bank in which you are a depositor.

If you are a depositor in the Riverside Bank (based on a $1000 deposit) you will not have to take $453.51 in stock in the new bank and mortgage company. You can demand cash in lieu thereof. If you are a depositor in the United Nevada Bank you will not have to take $353.47 in stock of the new bank and mortgage company. You can demand cash in lieu thereof. If you are a depositor in the Reno National Bank you will not have to take $177.49 in stock in the new bank and mortgage company. You can demand cash in lieu thereof. If you are a depositor in the Bank of Nevada Savings & Trust Co. you will not have to take $198.57 in stock in the new bank and mortgage company. You can demand cash in lieu thereof.

REFUSE to sign the post cards. The extension calls for a "reasonable" time, but continues beyond a ninety day period mentioned unless you make a written demand at the end of the ninety day period for the return of your waiver. Read the card you are asked to sign.

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four million to two million. That's not so wonderful."

"Well, then, how much more assets than now pledged to the R. F. C. will be pledged for the additional $2,000,000 R. F. C. loan under the plan?" Kearney asked.

"The assets offered are $3,247,391.56, appraised value," Patrick referred to the plan.

"If they got that two million, then the R. F. C. would hold $7,100,000 security for $5,300,000 loans," Kearney said.

Reno National

The Henderson bank owes the R. F. C. $458,107.86, which is backed by $867,606.28 security (appraised value), or about 100 per cent margin, Kearney brought out.

The United Nevada owed $292,093.45, which is secured by $548,796.23, or a 50 per cent margin. No other closed banks in Nevada owe the R. F. C.

Asked how much the Reno National would be contributing to the new setup, Patrick said that there was one important thing to remember about the Reno National.

"The Reno National holds the underlying security for loans held by other banks. In the provisions of the plan the Reno National would distribute that security in proportion to the notes held by the other banks," Patrick emphasized.

Patrick said that the Reno National would release $163,427.17 to depositors on the day the new bank opened, plus what the Reno National would release to other banks.

"The Reno National would put $537,000 into the new bank and $4,608,213.30 into the mortgage company out of the Reno National's gross assets of $8,867,929.59," Patrick related.

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Another May Testify

"We have put in practically all of Tobin's testimony that we want," Griswold declared. "As far as we are concerned the only thing left is for the defendant attorneys to cross-examine him."

Judge Guild said that, if for some reason, Tobin could not appear, Griswold could have some other member of the appraisal committee appear as a witness and bring the appraisal of the Reno National bank with him.

Harry H. Scheeline, one of the appraisers of the assets of the closed banks, was put on the stand late Wednesday and 10 volumes of appraisals of the nine state banks were introduced through him as evidence for identification.

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Receiver Cited for Contempt, Jailed

(Associated Press Leased Wire) CARSON CITY, Nev., Sept Tobin. National Bank receiver in charge the Reno National Bank, cited for contempt of court today refusing to give testimony considproposed plan reorganize that and other banks In the closed group Tobin five days in and fined $10 by Judge Clark Guild. the receiver IN going testify will know the reason why."

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Receiver Cited for Contempt

CARSON CITY (Nev.) Sept. Tobin, national bank receiver in charge of the Reno National Bank, cited contempt of court today for to vital proposed plan to that ten other banks in the closed Wingfield group. Tobin was sentenced to five days in jail and fined $10.

ARIZONA GETS RELIEF CASH Sept. $400,000 was granted today by the Federal Relief Arizona Administration meet unemployment relief in that State during September

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U. BANK RECEIVER JAILED

Refused to Give Information to Help Reorganization.

CARSON national bank receiver charge the Reno National bank, was cited for contempt court today for refusing testimony reorganize and other in the closed Wingfield group. Tobin jail $10 Judge the testify reason habeas corpus out in the federal fore could carried out, and returnable before Judge Frank H. today.

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BANK RECEIVER JAILED

Refused to Give Information to Help Reorganization.

CARSON Nev. Sept Tobin, national receiver charge the Reno National bank, contempt court today for refusing testimony considered proposed other banks the Wingfield group Tobin was jail fined $10 Judge Clark advised attorneys for the receiver "Tobin going testify will know reason why habeas corpus sworn in the federal fore sentence could carried out, was Frank H. Norcross later today.

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Habeas corpus proceedings of Walter J. Tobin, Reno National bank receiver, who was cited for contempt of court by Judge Clark J. Guild Friday when he refused to testify in the bank reorganization trial, were disposed of in short order yesterday.

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TOBIN OBTAINS NEVADA WRIT TO KEEP ECORDS

Outcome Of Action Affects Decision In Bank Reorganization

CARSON CITY (Nev.) Sept. restraining order was issued the federal district here yesterday enjoining incourt troduction of national bank records state court hearing on plan reorganize eleven closed banks in Nevada. The Friday, at which time Judge Frank H. will determine whether shall be made Hearings Halted. Issuance of the order brought to halt hearings on the proposed plan, whereby the organization eleven banks, including two nationbe consolidated and reopened under depositor controlled Judge Norcross had held the action of Judge Clark Guild in finding W. Tobin. National Bank guilty contempt for give certain testimony the state court hearing. and had habeas corcommenced Tobin.

Of Much Concern. No sooner Tobin returned to the stand in state court again asked disclose information he considered confidential, his attorneys obtained the temporary restraining How the matter will finally be settled matter much conGuild has said, in effect. that not pass on the plan until facts are placed before him disclosing the condition both Reno National the First National Bank of Winne-

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WALTER J. TOBIN MAKES A HOLE IN ONE AT GLENBROOK

Can a receiver take it? James Peterson, shoe merchant; John Belford, lawyer, and Roy Frisch, banker, say they know one who can.

The trio was playing golf at Glenbrook, Lake Tahoe, yesterday, when Walter J. Tobin, Reno National bank receiver, shot a hole in one. It was on the third hole.

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Nevada Bank Chain Reopening Sought

RENO Tobin. Reno National Bank Barry Tobin's route Wash ington by confer comptroller currency of the closed The plan. drawn by the banks the national banks in the chain can program nine State banks closed tober 1932

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CHARGES FORCE NEW ACTION IS RESIGNATIONS FILED IN RENO OFPETALUMANS BANK LAWSUIT

Mayor, Two Councilmen And State Superintendent Charges City Attorney Quit Illegal Transfer Of Under Attacks Securities

PETALUMA (Sonoma Co.), Jan. climax charges citizens committee, Mayor liam two members of the city council and the city attorney resigned here, counmember he will resign on February Councilmen George Van Bebber and Ludwig Schluckebier, who with Mayor Farrell are accused by the citizens committee of selling merchandise through their private businesses to the city, submitted their resignations special meeting the council Councilman Chris Riewertz announced he officially give his post at the next regular ing the council protest against the action of the citizens City Attorney Louis H. Cromwell submitted his resignation.

RENO (Nev.). suit seeking return of assets of one of the closed Wingfield banks was filed here late yesterday by E. Seaborn, state bank superintendent. against the Reno National Bank, its W. and the Crocker First National Bank of San Francisco. The suit demands return to the Bank of Nevada Savings and Trust Company of assets valued at $931,allegedly transferred illegally from the savings bank to the Reno National and then used by the latter as collateral for loan from the Reconstruction Finance Corporation.

Preference Is Sought. A request is made in the complaint that if the assets cannot be returned that the Bank of Nevada be made preferred creditor. The directors the two banks identical, asserted that the Crocker bank officials took charge the Spring of 1932 of all the Wingfield banks and were the transfer assets made that Crocker bank loans could secured. The Crocker bank paid off before the closing the Wingfield Later when additional RFC loans were made, is asserted, the Reno National did not have security and used the Bank of Nevada assets as collateral.

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RETURN OF SECURITIES IS SOUGHT

Crocker, Tobin, Named Defendants In Action

Bank Superintendent E. born yesterday filed suit against Tobin, Reno National Bank ceiver: the C. and the Crocker National Bank for the return of assets held by them to the Bank of Nevada Savings Trust company.

Harwood & Diskin, Seaborn's tornies, filed the suit in the Washoe district court, demanding that 664.42 of the Bank of Nevada Savings Trust company's assets, now held by the Reno National receiver and the be returned to the savings bank.

Asks Preference

The complaint asks, the return of the savings bank's assets can not that the court declare the Bank of Nevada's claim and entitled to in priority payment out of the assets of the Reno ional. Seaborn took over the affairs the Bank of Nevada Savings Trust December company after the bank holiday was claimed November 1932. According to the complaint, the Bank Nevada had deposit National Bank in April, 1932 the same time the Reno National Bank owed $826,425 to the Crocker First National Bank and indebted to the Federal Reserve Bank $133,500. The amount owed to the Federal serve Bank was secured. Crocker Management Sometime prior to April, 1932, the cashier and assistant cashier of the Crocker bank were invited by officers or an officer of the Reno tional Bank and Bank of Nevada Savings Trust company to manage the business of the Reno National and the savings bank, the complaint asserts. The officers and directors of the Reno National and the Bank of vada were identical, was stated. The Crocker bank officials rected the management of the Reno National and the savings bank from a date prior to April, 1932, to September 1932, the complaint alleges.

Charges No Authority The placing of Crocker officers over the affairs of the two Reno banks was done without the authority of the board of directors of the Reno banks, Seaborn charges. The taking the powers of the board of directors of the Reno banks illegal, it was asserted. Beginning with the month of April, 1932, many depositors of the Reno National Bank were withdrawing their deposits and the Crocker First National Bank was insistent on payment of the debt due by the Reno National. The available sets of the Reno National, due existing economic conditions, were frozen, it was claimed. Loans The Crocker officials assertedly in charge of the Reno banks caused the officers of the Reno National to apply to the for loans and pledged as security for payment of the loans paper and securities delivered to the Reno National by the Bank of Nevada. Seaborn alleges. At the time the Crocker officials purportedly took charge of the Reno National and Bank of Nevada, the owed by the Reno Natmoney ional was not secured. When the Crocker officials legedly took over management of the two banks, they obtained ity for their loans. Crocker Paid Off The borrowing from the was begun and continued to pay off the large sums of money owed by the Reno National to the Crocker institution, the complaint states. Some of the money went to meet the demands of the depositors of the Reno National. In April, 1932, acting under the instructions from the Crocker officials, an application was made to the for loan which was (Continued Page

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COURT REJECTS LIABILITY OFFER BY WINGFIELD

Federal Court Says Com. promise Proffer In Present Form Is Unfair

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$50,000 on deposit in the twp national Tobin Urges Acceptance The value the property offered was given Tobin. receiver the Reno National Bank, when he took stand yesterday, and Tobin offer should accepted. that Wingfield hopelessly Replying questions from said he requested Wingfield shares of Goldfield solidated mining together other free assets, but that Wingfield had declined. Asked Wingfield later the Crock Bank of San Francisco Tobin informed him, Tobin testified felt not turn mining stock he had creditors wanted nucleus rehabilitate his nances.

Wingfield Never Sued. Tobin explained he had brought against Wingfield, though he had against others, cause secured cluding bank, bring Wingfield was forced into that liability would be offer He testimony length value ranches which Wingfield offered to turn over to the receivTobin that it was his get the greatest for the and but could shown the Wingfield offer was the obtainable that he would be glad to use any other means get Great Liability. the bank and Riverside bank the Crocker holds Goldfield Reno Securities, which owns Riverside Golden Hotels Reno, certificate of Bank Elko valued $100,000. Tobin said he had tried in every action, Wingfield's equities securities pledged the Crocker Wingfield Takes Stand. Wingfield, the stand, he had no assets other than those shown the financial statement of made by the bank receivhis compromise 80 and per his free He nied deeded his home to time deposits shrinking banks. said the deeding home had nothing to with the banking situation 1931.

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GROUNDS ENUMERATED Grounds enumerated to support the charges include an assertion that Tobin made little or no move to liquidate the bank for fourteen months after he took charge but marked time awaiting the fate of the reorganization plan for the Wingfield banks which was sponsored by the Wingfield interests.

"The bank suspended operations on October 29, 1932," says the statement. "On or about five days thereafter (November 3, 1932), officers of the bank withdrew the sum of $30,000 in cash, paying said amount to the Crocker First National Bank of San Francisco, the money to be applied on a debt owing the Crocker bank by the Reno National Bank. Bear in mind this point that Mr. Wingfield owed the Crocker bank personally over $850,000 from a date anteceding the time the bank suspended operations. The withdrawal of cash after the bank closed its doors and the arbitrary move to make the Crocker bank a preferred creditor was illegal. Up to the present writing, Mr. Tobin has failed to bring suit against the Crocker bank for the recovery of this money and has failed to prosecute officers for the withdrawal of the funds after the bank was closed."

NEVADA STOCK FARMS It is charged further than Tobin has been remiss in not bringing suit against the Nevada Stock Farms, a Wingfield owned corporation, to collect $73,000 owed the Reno National

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"The bank suspended operations on October 29, 1932," says the statement. "On or about five days thereafter (November 3, 1932), officers of the bank withdrew the sum of $30,000 in cash, paying said amount to the Crocker First National Bank of San Francisco, the money to be applied on a debt owing the Crocker bank by the Reno National Bank. Bear in mind this point that Mr. Wingfield owed the Crocker bank personally over $850,000 from a date anteceding the time the bank suspended operations. The withdrawal of cash after the bank closed its doors and the arbitrary move to make the Crocker bank a preferred creditor was illegal. Up to the present writing, Mr. Tobin has failed to bring suit against the Crocker bank for the recovery of this money and has failed to prosecute officers for the withdrawal of the funds after the bank was closed."

NEVADA STOCK FARMS

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RENO NATIONAL INQUIRY IS LAID BEFORE GRAND JURY

The presence of James Sloan, special accountant for the department of justice, in the federal court building at Carson this morning, when the federal grand jury went into session, was taken by court attaches as an indication that the jury will be requested to consider certain phases of the Reno National Bank failure which occurred in November, 1932.

Sloan made an audit of the bank's books and an investigation of its affairs several months ago and recently made an additional inspection. His reports were filed in Washington and were later sent to Judge E. P. Carville, United States attorney, who, it is understood, will present the matter to the grand jury.

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The presence of James Sloan, special accountant for the department of justice, in the federal court building at Carson this morning, when the federal grand jury went into session, was taken by court attaches as an indication that the jury will be requested to consider certain phases of the Reno National Bank failure which occurred in November, 1932.

Sloan made an audit of the bank's books and an investigation of its affairs several months ago and recently made an additional inspection. His reports were filed in Washington and were later sent to Judge E. P. Carville, United States attorney, who, it is understood, will present the matter to the grand jury.

Reports were current at Carson this morning that the grand jury would be challenged by attorneys for the Wingfield interests but the report was apparently erroneous as no challenge was filed. George B. Thatcher, attorney for the Wingfield interests, conferred with Carville during the morning before the jury went into session.

In addition to the bank case several whiskey to Indian cases, infractions of the Dyer act and other federal law offenses will be presented to the jury by Carville or his assistant, Miles N. Pike.

Frank Humphrey of Reno is foreman of the grand jury. Other members are: N. P. Anderson, Isle Bair, Steve N. Belli, Jr., Harry C. Benneke, W. T. Donohue, E. W. Fritsch all of Carson; John D. Cameron, Harry Dunseath, L. E. Gunter, George Minor.