The Eureka Sentinel

SPENCER REYNOLDS APPOINTED RECEIVER
Takes Possession Friday Morning of the Eureka County Bank and Its Assets—Money of Eureka County Turned Over to Its Treasurer

During the week nothing definite has transpired regarding the affairs of the Eureka County Bank, save the appointment of a receiver on Wednesday, his qualifying as such officer on Thursday, the entering upon the duties of his office on Friday morning, the meeting of the Grand Jury Thursday, and the turning over of the money belonging to Eureka County to its Treasurer, all of which is set forth in the following:

District Court Proceedings

Judge Breen convened Court on Wednesday, April 6, for the purpose of appointing a receiver for the Eureka County Bank and other matters.

Evidence was introduced showing the death of the late Bank Examiner M. M. Van Fleet on the 2nd instant, and that the defunct institution had no legal custodian since then; that the Board of County Commissioners, to protect the county and depositors, had ordered the Sheriff of the county to place officers around the bank until the appointment of a receiver, and also that Governor Dickerson had wired C. H. Gorman to take charge of the bank as custodian.

Judge Breen then spoke substantially as follows:

A large number of depositors know of the difficulties that had to be overcome in the selection of a suitable person as receiver for the Eureka County Bank. As you are aware, the application for the appointment only came up for hearing last Monday week. Many present attended the meetings called for the purpose of advice and counsel. The last of those meetings was held in chambers on Friday, the first of this month. The answer to my telegram to the Henderson Banking Company came on the second and was a declination to accept the position. I informed the depositors at the meeting held on the first instant that, should an unfavorable reply come from the Elko people, I would appoint some citizen of our town. I am now prepared to do so. The gentleman who is to be receiver has lived in Eureka some 35 years, or three years longer than myself. During all of the 32 years I have known him I have never heard an ill word of him or of his character. He is a man of strict integrity, good ability, and from his management of the assets of the bank we have a right to expect the best results. I shall appoint Spencer Reynolds of Eureka, Nevada, receiver of the Eureka County Bank, and fix his bond at $50,000.

Judge Breen convened the District Court at 10 o'clock Thursday morning. The Grand Jurors who had been Summoned were in attendance, and after a number had been excused, the following Grand Jury was sworn in and immediately entered upon its duties:

Dennis Keefe, Foreman, Daniel Morrison,
D. E. Nostrosa,
A. P. Mayberry,
William Trembath,
Philip Paroni,
William Zadow,
A. W. Clayton,
C. J. McBride,
Frank Kopp.
Robert D. Bailey,
Oliver Pratt,
George D. Shultes,
Ernest H. Mau,
Fred Crofut.
Otis Fulton,
James H. Jury,

After charging generally in the statutory provisions, Judge Breen instructed them substantially as follows:

Charge to the Jury

And now, gentlemen, to be candid with you, as I have at all times endeavored to be, for a few words on the leading reasons for calling you together to-day. When on the 7th day of last month Court convened for the Spring term there were few judicial officers in this State who felt prouder than the humble District Judge of this district, for there was not a single criminal case on my calendar, nor, for that matter, a civil one either. There had not been for one year necessity for the summoning a Grand Jury. There was a large cash balance to the credit of the county in the possession of the County Treasurer. There was not, up to that date, an idle man in the community, and there was on deposit in our local bank, or supposed to be, the exceptionally large sum of $319,892.36, or a per capita of over $210, counting our population at say, 1500 souls—a per capita rarely exceeded in the most enterprising community. Peace, plenty and prosperity expressed the conditions then existing, with the brightest of prospects ahead of us. Whilst flood and washout somewhat stunned us for the moment, we felt sure their evil effects were but temporary, and that ere long our tremendous mineral resources and native energy would bring back to us once more our temporarily lost affluence. But sudden as a flash of lightning, and unsuspected as a roll of thunder from a sunny sky, or the appearance without warning of a deadly epidemic in a superhealthy community, came the closing of our local bank, to the utter consternation of all. Only those of us who were in the town of Eureka on the 22d day of last month and days following can tell of the mental suffering and otherwise direful effects of this collapse. I shall not dwell on the subject longer than to say that no such heart suffering had been felt here since the first piece of mineralized rock was picked up on the slope of Prospect mountain over 40 years ago. It would almost seem that every man, woman and child had a deposit in the Eureka County Bank, and in many instances the last dollar of a life's savings.

Now, as to whether or not the collapse of our bank was brought about by wrong doing on the part of any particular persons, I am not in position to say. Personally I know nothing of the facts. All the information in my possession is equally in yours, and is contained in the report of the late Bank Examiner of this State, sworn to in open Court, and which many of you gentlemen doubtless heard given in Court. But it looks to me that the report of the Bank Examiner contains facts of a nature to justify a rigid investigation by you-fully, fairly and impartially made. I have no further comment to make.

The District Attorney and other officials will lay before you all the material facts in their possession. No man is accused of a violation of the law. Investigation alone can tell the tale, and tell it correctly. Hearsay generally is not reliable evidence. It is for you, as it is for me, to do our duty, and do it thoroughly and impartially-do it so that in the days to come we can look back upon the past with calm and clear consciences.

The oath you have taken, that you should present no person through hatred, malice or ill will, nor leave any unpresented through fear, favor or affection, or for any reward or the promise or hope thereof, contains in a few words the full scope of your duties.

I would impress upon you the urgent need of keeping secret all that transpires in the jury room. The law requires and enjoins on you the utmost secrecy; the ends of justice require it. You are

handicapped in your work by the lamentable death of the late Bank Examiner. God of Mercy called him from us, let us hope, to a better world. He was preparing data to aid you.

You should be calm under fire and expect from this hour forward evil criticism-you will get it, whatever course you take. Some of you may have a contemptible personal enemy or two-some half-witted or whole witted creature, as most public officers have who do their duty-so you may be the subject of backbiting and calumny, but such will not harm you. I have had my share, but, thank heaven, I have grown strong, healthy and aggressive for the right, notwithstanding it all. You may retire.

SPENCER REYNOLDS APPOINTED RECEIVER

Spencer Reynolds, receiver of the Eureka County Bank, completed and had filed and approved his bond Thursday afternoon, and took the oath of office. On Friday, April 8, at 9 o'clock a. m., Mr. Reynolds took possession of the bank and its assets, and is now, with his attorney, Charles B. Henderson, of Elko, looking into the affairs of the institution.

EUREKA COUNTY MONEY RELEASED

Regarding the county money in the vault of the Eureka County Bank, which was turned over to the County Treasurer Friday morning, Attorney Henderson stated to the SENTINEL, substantially, that when the bank opened in the morning the three County Commissioners and County Treasurer appeared at the bank with H. W. Clarke, the Deputy County Treasurer, in whose custody the county money was held.

The county money was counted over by H. W. Clarke, and was given into the possession of County Treasurer R. McCharles by his deputy, Mr. Clarke, under whose control and in whose possession it had been. This money was not included in the sworn statement of the late Bank Examiner, M. M. Van Fleet, as an asset for the reason that it was not on the books of the bank nor in its possession, but had been delivered by the bank on March 19, 1910, to H. W. Clarke, the Deputy County Treasurer, and was held by him as shown by the following receipt given by Mr. Clarke to the bank on March 19, 1910:

Eureka, Nevada, March 19, 1910

Received of Eureka County Bank twenty-nine thousand one hundred forty-six and 64-100 Dollars, amount of Eureka County money on special deposit in said bank

H. W. CLARKE,
Deputy County Treasurer Eureka County

In substance, Attorney Henderson further stated that from the above receipt it is clear that the money was not on deposit in the Eureka County Bank, but had been delivered to the County Treasurer's deputy before the bank was closed and was in no sense an asset of the bank, but was held by the county through its proper officer, and was by itself and not mingled with any of the bank money or assets.