Quinn River Bank (McDermitt, NV)

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Bank Examiner Closes Institution In Nevada

WINNEMUCCA (Nev.). Jan. The Quinn River Bank at McDermitt, northern Humboldt Countaken in charge by State Bank Examiner E. Seaborn terday afternoon. The bank remain closed until an audit of the books has been made. The bank was founded in 1918 and is one of the smallest in Nevada. capital $20,000 and surplus $5,000. with deposits of $65,000 loans on hay are understood to caused the financial troubles. The bank was closed after run started, but the bank examiner stated Wednesday afternoon he was hopeful of its early reopening and full payment of depositors.

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13 STATE BANKS STILL OPEN

RENO, Nev., (UP)-Thirteen banks in Nevada are open for business, compared to 31 before the depression, a United Press survey showed. Of the banks open six are national banks, four state banks are operating without limitations and three under restrictions. Thirteen of the 18 closed institutions are in hands of receivers. 4 others have been reorganized into liquidatating companied and one, Bank of, Southern Nevada at Las Vegas, is in voluntary liquidation. Depositors of the closed Battle Mountain State Bank have petitioned for permission to reopen under restrictions. Hearing has been set for June 6 before Judge Edgar Eather at Austin. If the depositors' petition is granted the Batle Mountain institution will be opened for limited business similar to the Lander County Bank, Austin, the Mason Valley Bank at Yerington, and the Wells State Bank. Banks reopening for restricted business under the supervision of State Bank Superintendent E. J. Seaborn are required to freeze all old deposits for a four year period. New deposits must be held in cash, be, deposited with a Federal Reserve bank or invested in federal securities. Banks open for unrestricted business are: Ely National Bank and First National Bank, both at Ely; First National Bank, Lovelock; First National Bank, Elko; First National Bank, Reno: Ruth Bank, Ruth; First State Bank, Las Vegas; First National Bank, Eureka; Farmers Bank of Carson Valley, Minden, and the Bank of Pioche. Those under restrictions are: Lander County Bank, Austin; Wells State Bank, and the Mason Valley Bank. Closed Banks under Leo F. Schmitt as receiver are: Carson Valley Bank, Carson City; Bank of Nevada Savings and Trust, Riverside Bank, and United Nevada Bank, all of Reno; Bank of Sparks; Tonopah Banking Corporation, of Tonopah, and Virginia City Bank. Seaborn is in charge of the following closed institutions: Battle Mountain State Bank; Douglas County Farmers' Bank Gardnerville; The Quinn River Bank, McDermiat; Winnemucka State Bank and Trust Co. The Reno National Bank is in charge of Walter J. Tobin, national bank receiver. Receiver H. S. Streeter is in charge of the First National Bank of Winnemucca.

MRS. JOHN FEENEY, former resident of Wabuska, accompanied by her son John, is spending a short vacation visiting at the home of Mrs. Gelmstedt. She will return to San Francisco on Monday.

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OVER 15 MILLION STILL TIED-UP IN CLOSED BANKS

Payment of $2,305,730 to Depositors Authorized Since Failures

Approximately thirteen per cent of the deposits tied-up in nineteen of the Nevada banks that closed their doors during the past four years or went on a restricted basis have been made available to the depositors of the institutions, according to figures compiled by the state bank superintendent and the receivers of the closed institutions for the period ending December 31.

The deposit liabilities of the nineteen banks totalled $17,319,783 and depositor dividends amounting to $2,305,730 have been authorized by thirteen of the banks, leaving over $15,000,000 still owing depositors. A considerable part of the dividend money has not been called for by the depositors, the reports show.

The first Nevada bank to close, following the 1929 depression, was the Quinn River Bank of McDermitt which was taken over by State Bank Examiner Seaborn on January 28, 1931. On September 21, 1931, the Douglas County Farmers Bank of Gardnerville failed and on January 4, 1932, the Winnemucca State Bank and Trust Company closed its doors. On February 17, 1932, the two banks in Yerington were taken over by Seaborn and on October 31, 1932, the twelve Wingfield owned banks, two of them national banks, went down in the largest bank failure ever recorded in the state.

The Battle Mountain Bank did not open its doors after the Nevada bank holiday of November, 1932, while the Lander County Bank of Austin reopened under restrictions following the national bank holiday of March, 1933.

The deposit liability of the nineteen banks and the depositor dividends authorized to date are as follows:

Bank | Deposit Liability | Depositor Dividends Quinn River ... $52,000 $33,800 Douglas Farmers 102,000 Winnemucca St. 240,000 Mason Valley .. 322,000 64,400 Lyon County ... 399,000 Battle Mt. State 255,000 25,500 Lander County . 215,000 109,650 Churchill County 668,000 43,340 Henderson Bk'ng 1,600,000 Wells State 85,000 21,250 Reno National . 3,823,000 Winnemucca Natl 1,797,000 491,136 Riverside Bank . 822,392 513,984 United Nevada . 1,526,856 458,058 Bank of Sparks. 622,893 286,530 Virginia City ... 195,593 15,629 Carson Valley .. 834,303 Bank Nev. S. & T. 3,215,080 160,754 Tonopah Bkg Co. 544,666 81,699

Total: $17,319,783 $2,305,730

Nine of the closed institutions are being administered by receivers, two are being liquidated by the bank superintendent, four have been taken over by mortgage companies organized by the depositors and four have been reopened under restrictions.

The status of the banks, as far as their present administration is concerned, is as follows:

Quinn River Bank—Being liquidated by bank superintendent and has paid sixty-five per cent of its deposit liability. Another twenty-five per cent payment will probably be made in a few days winding up the receivership.

Douglas County Farmers Bank—Taken over by depositor owned mortgage corporation. No dividends paid.

Winnemucca State Bank and Trust Company—Being liquidated by state bank superintendent. No dividends paid but a ten per cent dividend will probably be available within a short time.

Mason Valley Bank—Reopened under restrictions which permit acceptance of deposits but prohibits loaning money. A depositor dividend of twenty per cent has been authorized.

Lyon County Bank—Taken over by depositor owned mortgage corporation. No dividends paid.

Battle Mountain State Bank—Taken over by depositor owned mortgage corporation and ten per cent depositor dividend authorized.

Lander County Bank—Never closed, except during bank holiday, but reopened after national bank holiday under restrictions and authorized a depositor dividend of fifty-one per cent.

Churchill County Bank—Taken over by depositor owned mortgage corporation and dividend of six and one-half per cent on deposit liability authorized.

Henderson Banking Company of Elko—Taken over by depositor owned mortgage corporation, which is endeavoring to secure an RFC loan to reopen the bank and pay a thirty per cent depositor dividend. It was reported several weeks ago that an RFC loan of over $500,000 had been authorized but it has never been consummated.

Wells State Bank—Reopened under restriction and has authorized a depositor dividend of twenty-five per cent.

Reno National Bank—Being liquidated by federal bank receiver but has paid no dividends and still owes the RFC a large sum of money which is secured by most of the bank's collateral.

First National Bank of Winnemucca—Being liquidated by a federal bank receiver and has authorized depositor dividend payments amounting to $491,136.76. The receiver borrowed $290,000 from the RFC to make part of the dividend payment.

Riverside Bank—Being liquidated by court receiver and has authorized dividend payments amounting to sixty-two and one-half per cent.

United Nevada Bank—Being liqui-