Article Text
Offer Wingfield on Set Settlement Be Of to
NORCROSS WILL FIX ACTION
National Bank Receivers Have Given Approval to Assessment Compromise of Others Who Objections Are Interested Are to Be Heard at Hearing
Acting on the request of of the Reno National receiver of and First National Bank Winnemucca. Judge federal court expected the date public hearannounce petitions the compromising the director's liability Wingfield the banks. George which was filed late The by Norman Barry asserts that the two receivers have compromise the claims proposed Wingfield and that the compagainst troller authorized submission court. Wingfield agreed assign certain notes, secured by ranch property, deed stock in the Neranch assign Stock Farm. the receivers settlement all liability The stockholdclaims against amount the Reno National Bank in the bank directors' liability not determined. the petition states. VALUE The property Wingfield proposes transfer two banks determined including mortranch property the vicinity of Fallon, amounting and deed to the Bailey which the compranch near troller's letter. the valued addition Wingfield offers assign shares of Nevada Stock Farm, stock with book value of dollar and the petition. The Nevada to the appraisal report filed cording by the state of banks. various Wingfield banks the $190,791 in addition indebted the Wingfield Trust the indebted to the Nevada Surety Bonding Company for he loan $35,971. Continuing. the report total line unsecured. Only remaining this company the stock miles south Reno on the South Virginia road, valued and few horses. All rest the horses have been sold off and the money applied current LIABILITY Wingfield's proposal calls for stipulation that he will not sued future for directors' liability and such liability termined. The expressly states that none the other directthe two banks are being released from their possible difor rectors' liability by virtue of the proposed compromise with Wingfield. The receivers their approval compromise the ground that Wingfield's financial condition such that any other course would force him into the hands of and that the Crocker National the Banks. the about would particiwhatever liquidation might obtained from the sale of his and "seemed doubtful recovery could made than accepting the cash settlement made the Wingfield but was rejected. the petithe of HEAR ROTESTS Protests against the settlement the made the hearing by any terested persons, according letfrom comptroller's office which filed part of the tition and the court free use its judgment in the matter. petition several exhibits Wingfield's financial his various The except for the introshowing Tobin and Streeter took charge of the two with numerous legal phrases tion follows: STOCK tion the time of the taking Reno National Bank First Bank Winnemucca by the comptroller of rency and the appointment of Tobin as receiver of the Reno field tional Bank and Streeter receiver of the First National Bank George Wingfield prior thereto. been the owner 3521 shares same. capital stock of the Reno der National Bank and 1082 shares of the given capital stock the First Bank shown by thereof, capital stock the par value of $100 per share. "That the time of the to taking of the Reno National Bank and this First National nucca the comptroller the George Wingfield director the Reno National Bank the First National that the present the liability of George Wingfield unknown and cannot ascertained. OFFERED $20,000 immediately after said said comptroller of the Tobin and Streeter commenced negotiations George Wingfield to his director's liability in said banks. thereupon, George Wingfield rendered financial statement to Tobin and Streeter, copy which hereto attached. about the same time George Wingfield offered to pay the sum of 000 cash in full for all said bilities, which offer refused by on the 17th day of June, George Wingfield made an offer follows: "George Wingfield offered: assign Tobin and receivers of said banks. respectively, note of Blair the principal amount accrued interest June making total of assign note and mortBlair Minnie principal $7300 terest to June of making total of property consists proximately well near the Churchill county high school of Fallon, assign real and chattel Sagouspe and Julie Segouspe, cipal amount with to June making total Sagouspe property con1000 miles south Fallon, the vested water right of about 800 acres. notes representing advances Sagouspe dated than the mortgage known the Bailey ranch. located Fallon, of about 200 acres highly improved land with vested water right about 180
LIABILITY said offer conditioned that accepted, said would enter stipulation with George Wingfield the that sued his director's liability either "That the said Streeter and Tobin thereupon had conference for the purpose considering conference was suggestMr. Wingfield execute the spective institutions notes for amount of his liability pledge security such edness his This he refused to stating could never the notes pay would sign them. and that pledged all of his free such indebtedness, them full compromise ment his stockholder's directand he would be forced into receivership his other principal creditor, the First tional Bank which he indebted in the amount upon which indebtedthere due this time approximately $30,000 and there would alternative to file petition bankruptcy. CONSIDERED receivers then discussed matter an attempt to devise way the greatest possible from Mr. Wingfield. The advisability having receiver appointed to take the assets for benefit of creditors considered. this event. the Crocker National Bank would participate in whatever liquidation might from sale free the of would due to the amounts and seemed doubtful better net recovery could made in this manner than accepting the offer of settlement above outlined. your believing acceptance said offer to be for best of the said banks, on the day June, petitioners of vision of insolvent national to the effect that receivers believed that the ceptance of said offer of George Wingfield was the best that could obtained. and was the best to course pursue. "Thereupon, the eleventh day 1933, Tobin Streeter received from the comptroller of the authorizacurrency an accept said offer of George of which attached hereto. RECOMMENDS ACCEPTANCE the opinion your would the best terest and of said trusts accept the said offer George for the reasons hereinabove forth. your petitioners pray that court fixing day for the and that the court further that notice of said hearing by publication in newspaper circulation likely notice parties concerned interested to appear before court on said then and there show cause, they have, any why should not make der compromising the liability and the liability George Wingfield stockholder director of the Reno National Bank the National Bank accordance with the nemucca above taking the assignment Blair in of note including principal and interest to June 16, 1933. taking the assignment of mortgage of Blair note Minnie his wife, in and amount including and interest to June 16, principal taking the assignment of and mortgage of and Julie his wife, in the including and interest June 16, 1933. taking deed to property known Bailey ranch consistacres of highly improved land with vested right for about 180 acres. taking Nevada Stock Farm, Inc., having book value share, and problematical actual value ORDER make order thorizing said receivers sign stipulation with George Wingfield that they will sue account the liability George Wingfield but the reservation none of the other directors of Reno National Bank First National Bank Winnemucca being released thereby any manner from their possible liability, and further ordering that the proceeds ratably between Reno National Bank the Bank upon further hearing, that court make an order authorizing petitioners, each them, accept compromise forth the shall to the seem just and proper, the may make such other and further the premises the court shall seem and proper.'
LETTER The letter from United States comptroller's office authorizing the receivers the banks submit the proposal the court public hearing, follows: "TREASURY DEPARTMENT August 1933. the Reno National Bank, Reno, vada.
Sir: "Further reference made your letter June 1933, settlement offer of Mr. George Wingfield for his stockholder's and tential director's liabilities trust the suspended National Bank WinneNev. Wingfield debted to your trust stock assessment liability the amount and also indebted Winnemucca trust by liability the amount of Mr. Wingfield's offer of comproprovides for the following: Assignment note and mortgage including principal and interest June 1933. "Assignment note and mortgage of Blair and Minnie wife, the amount of principal and interest June 1933. "Assignment real and chattel mortgage of and Julie Sagouspe, his wife, the amount including principal and interest June 16. 1933. "Deed the Bailey ranch consisting of about 200 acres of highly land with vested water right for about 180 "Assignment shares Nevada Stock Farm, Inc., having book value one dollar per share and problematical actual value. Blair property appraised the 000 and Bailey ranch All of derstand, are located near Nev.
LIABILITIES LISTED financial statement of Wingfield reflects liabilities considerably excess assets. You indicate that this debtor has contemplated the filing of tition in bankruptcy. your opinion that the offer Wingfield, in view the the best able recommend its you ceptance, in which recommendation Mr. H. Streeter, receiver the First Bank of Winnemucca, concurs. You suggest that the property to be received this transaction held trust for the benefit the creditors both suspended banks net proceeds pro-rated the basis the stockholder's liabilities determined the director's liabilities to determined. compliance with previous instructions from this office, you advised in telegram gust that Mr. Wingfield would agree court hearing in the premises duly published. consideration of the formation submitted the premises by receiver of the First National of Winnemucca, Nev., on this subject, provided convinced the offer the largest satisfactory obtainable by legal other proper methods and you satisfied the to insolvency of the debtor, to petition authority to compromise the and potential director's to your trust of Mr. George Wingfield terms above outlined. than those of Mr. Wingfield's compromise liability will potential director's of covenant not on the basis must be distinctly to sue none of the understood that Reno Naother Reno, Nev., and tional Bank Bank of Winthe First National being released Nev., from thereby, any liability. their others interested in In order that this matter have an oppormay of the facts tunity apprised the any objeccase, tion the proposed compromise include settlement, request that the your petition time and place court designate thereon. The date for hearing should be not the less than ten after the the petition the presenting the and purpose court thereof should properly published local newspaper general circulation that all have notice of the persons may intention compromise the stockholder's potential rector's liabilities Mr. George Wingfield to your trust and the suspended First National Bank of Winnemucca, Nev. the if any objections the acceptance proposed compromise settlement voiced which, the opinion the sufficient port rejection the offer, delaying its ceptance, you governed by court's instructions this connection advising this fice thereof promptly. event no objections to the promise offer voiced the hearing by the the then may its own issue order authorizing the compromise offer herein You being directed have public hearing your petition in this case, asmuch such sidered advisable, view of the amount of circumstances involvand when the compromise settlement authorized please forward for files the copies the court papers, together with appropriate stipulation. keeping with your suggestion you authorized range for the holding the property under the above compromise settlement in trust for benefit of the itors trust and the pended First Bank Winnemucca, the net proceeds be prorated on the basis of stockholder's liabilities now determined, and the directliabilities determined. your information advised that Mr. Streeter. receiver of the First National Bank of being simiGOUGH, "Deputy Comptroller."
FINANCIAL STATEMENTS Financial statements of Decem1932, petition, exclusive of certain notes to Wingfield by individuals, are follows:
ASSETS
Cash in bank:
Crocker First National Bank Reno National Bank. 2,924.12
Cash (1) Certificates deposit (Henderson Banking Bank Misc. Ranches, Ranch Real Estate, Etc. Mining Stocks. Accounts Receivable Bills Rec. Misc. Assets 8,086.92
Total Assets
Stockholder's 3521 shares Reno Nat'l. Bank 1082 shares First
Bank of Crocker First Bank Riverside Bank
Total Liabilities
Liabilities in excess Assets hands allowance made for possible loss. Certificates deposit are Crocker First National Bank curity for loan. schedules for security.
DECEMBER 1932 Shares 200 Interstate Publishing 5,000 Nevada Signal 2,500 Nevada Surety Bonding Pacific Coast Assoc. Reno Securities Company 2,855 The Realization Company 1.00 12,500 Riverside Realty Francisco Stock Seat