Bank of Sparks (Sparks, NV)

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GROUP OF BANKS The Wingfield group of banks in Nevada, with combined deposits of about sixteen million dollars and capital of $1,975,000 include: Reno National Bank and Bank of Nevada Savings and Trust Company, with deposits of $7,600,000 and capital of $800,000; Riverside Bank of Reno, capital $50,000, deposits approximately $1,060,000; United Nevada Bank of Reno, capital $400,000, deposits approximately $1,800,000; Tonopah Banking Corporation, capital $50,000, deposits approximately $325,000; Virginia City Bank, capital $25,000, deposits approximately $200,000; Wells State Bank, capital $25,000, deposits approximately $85,000; Henderson Banking Company of Elko, capital $200,000, deposits approximately $1,650,000; Churchill County Bank of Fallon, capital $75,000, deposits approximately $750,000; Carson Valley Bank of Carson City, capital $125,000, deposits approximately $850,000; Bank of Sparks, capital $25,000, deposits approximately $730,000; Winnemucca First National Bank, capital $200,000, deposits approximately $2,000,000.

LEGISLATIVE SESSION Reports were current this morning that the calling of a special session of the Nevada legislature will be discussed with Governor Balzar on his return to the state as a considerable part of the state's funds, as well as the funds of counties, school districts, municipalities and the university are on deposit in the Wingfield banks. The legislative session, however, if one is called would not be held until late this month and during the next twelve days the proposed reorganization of the Wingfield banks may be effected, it was pointed out.

The terms of present members of the legislature, excepting hold-over senators expire on November 8 and if the legislature is called in special session its membership will consist of those elected next Tuesday and the hold-over senators.

GRISWOLD'S STATEMENT Lieutenant Governor Griswold issued a statement in addition to the moratorium proclamation setting forth in detail his reasons for taking the action. The statement follows:

"To the people of the state of Nevada: By proclamation, I have just declared a business and banking holiday to and including the twelfth day of November, 1932. My reason for so doing is the conviction that business, banks, bank depositors and the entire people of the state of Nevada will be best protected by this action.

"While some of our banks are not to be considered as otherwise than sound in all particulars, those of our banking institutions which have particularly supported our agricultural interests are naturally most seriously affected by the collapse in prices of agricultural products, which occurred about three years ago. Only very slight recovery in such prices has been realized and in the meantime and before the price collapse, exceptionally adverse climatic conditions have further destroyed the ability of the livestock raisers and farmers to reduce their obligations to the banks. In fact, these banks, in the hope of carrying over to a period of better conditions, have been obliged to

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WAIVER AND SUBSCRIPTION AGREEMENT OF DEPOSITOR AND OR CREDITOR OF BANK OF SPARKS, INC.

The undersigned, a depositor and/or creditor of Bank of Sparks, Inc., now suspended, in consideration of the execution of like agreements by such of the other depositors of said bank as may execute the same, and for value received and for the purpose of providing for the reorganization of said bank and other banks commonly known as the Wingfield Banks (Wells State Bank, Wells, Nevada; Henderson Banking Company, Elko, Nevada; First National Bank, Winnemucca, Nevada; Churchill County Bank, Fallon, Nevada; Bank of Sparks, Sparks, Nevada; Carson Valley Bank, Carson City, Nevada; Virginia City Bank, Virginia City, Nevada; Tonopah Banking Corporation, Tonopah, Nevada; The Reno National Bank, Bank of Nevada Savings & Trust Company, United Nevada Bank and Riverside Bank, all of Reno, Nevada), does hereby sell, transfer, convey and set over unto the executive committee hereinafter named, his, her or its claim against said suspended Bank of Sparks, Inc., in trust for the uses and purposes hereinafter set forth and hereby agrees as follows:

1. That the assets of each of said Wingfield banks shall be separately appraised by six (6) appraisers who shall be appointed as follows: one by the Receiver of The Reno National Bank, one by the Receiver of the First National Bank of Winnemucca, one by the State Bank Examiner of Nevada, and two (2) others, to be selected by Victor F. Palmer, who acts for certain large corporations interested in the reorganization of the Wingfield Banks and one to be selected by the chairman of the respective depositors' committees of the present closed banks.

2. All assets of this and all of the other Wingfield banks determined by the appraisers to be good and/or good but slow shall be sold, transferred and assigned to a mortgage company so organized and incorporated as to be a qualified borrower from the Reconstruction Finance Corporation, or other governmental loan associations or agencies, and to a NEW BANK, which shall have a capital of $500,000.00 and a surplus of $500,000.00, and which shall have a charter and the right to operate a main bank with branches. The par value of the shares of the new bank shall be $25.00. The capital of the mortgage company shall be approximately $3,131,000, but said capital may vary depending upon the amount of assets transferred thereto under the appraisals and classifications. The par value of the shares of the mortgage company shall be $1.00 each.

The appraisers herein provided for shall determine and fix the specific assets of the Wingfield banks which shall be placed in the "New Bank" and the specific assets which shall be placed in the "Mortgage" company.

The assets so placed in the new bank and/or mortgage company and acquired from the State Bank Examiner in charge of the suspended bank shall equal the liabilities of the suspended bank absolutely assumed and/or paid by the new bank and/or mortgage company pursuant to this agreement and under like agreements executed by other creditors, and under such contract with the State Bank Examiner as shall be entered into in the acquisition of said assets. Said amount of assets so placed and retained in the new bank shall be subject to adjustment in amount so as to equal the sum actually found to be necessary at the time of acquisition, to compensate the new bank and/or mortgage company for the total liabilities to be assumed and/or paid by it. The assets retained by the new bank or mortgage company are to be taken over at face value with adjustment of interest to the date of transfer when the asset is interest bearing, but any asset, whether interest bearing or not, may be taken over at the value fixed by the appraisers if such appraised value be agreed upon by the new bank and the State Bank Examiner.

3. All assets of Bank of Sparks, Inc., which are deemed by the appraisers doubtful or losses shall also be sold, transferred and assigned to the new bank and/or mortgage company but the new bank or mortgage company will transfer all of said items (hereinafter called the Trust Fund) to three liquidating trustees to be appointed by the Judge of the District Court of the District of Nevada having jurisdiction thereof. Said trustees must be depositors. Said Trust Fund shall be held in trust and shall be distributed pro rata from time to time by said trustees to the creditors waiving and contributing the aforesaid portion of claims. The trustees shall make no charge for their services but they shall be entitled

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The undersigned and each creditor entitled to participate in said Trust Fund shall receive a participation certificate representing his or her interest in the trust assets.

Said Trust Fund shall be exclusively for the benefit of the depositors and creditors of Bank of Sparks, Inc., but if and when said depositors are paid in full the amounts of their original claims against said bank, together with interest at the rate of four per cent (4%) per annum from November 1, 1932, then any balance shall be distributed to the stockholders of Bank of Sparks, Inc., or their successors in interest, as their interests may appear.

That the assets of each of said Wingfield banks shall be separately appraised by six (6) appraisers who shall be appointed as follows: one by the Receiver of The Reno National Bank, one by the Receiver of the First National Bank of Winnemucca, one by the State Bank Examiner of Nevada, and two (2) others, to be selected by Victor F. Mueller, who acts for certain large corporations interested in the reorganization of the Wingfield Banks and one to be selected by the chairman of the respective depositors' committees of the present closed banks.

All assets of this and all of the other Wingfield banks determined by the appraisers to be good and/or good but slow shall be sold, transferred and assigned to a mortgage company so organized and incorporated as to be a qualified borrower from the Reconstruction Finance Corporation, or other governmental loan associations or agencies, and to a NEW BANK, which shall have a capital of $500,000.00 and a surplus of $500,000.00, and which shall have a charter and the right to operate a main bank with branches. The par value of the shares of the new bank shall be $100.00. The capital of the mortgage company shall be approximately $500,000, but said capital may vary depending upon the amount of assets transferred thereto under the appraisals and classifications. The par value of the shares of the mortgage company shall be $1.00 each.

The appraisers herein provided shall determine and fix the specific assets of the Wingfield banks which shall be placed in the "New Bank" and the specific assets which shall be placed in the "Mortgage company."

The assets so placed in the new bank and/or mortgage company and acquired from the State Bank Examiner in charge of the suspended bank shall equal the liabilities of the suspended bank absolutely assumed and/or paid by the new bank and/or mortgage company pursuant to this agreement and under like agreements executed by other creditors, and under such contract with the State Bank Examiner as shall be entered into in the acquisition of said assets. Said amount of assets so placed and retained in the new bank shall be subject to adjustment in amount equals to equal the sum actually found to be necessary at the time of acquisition, to compensate the new bank and/or mortgage company for the total liabilities to be assumed and/or paid by it. The assets retained by the new bank or mortgage company are to be taken at their face value with adjustment of interest to the date of transfer where the asset is interest bearing, and any asset, whether interest bearing or not, may be taken over at the value fixed by the appraisers which appraised value be agreed upon by the new bank and the State Bank Examiner.

All assets of Bank of Sparks, Inc., which are deemed by the appraisers doubtful or losses shall also be sold, transferred and assigned to the new bank and/or mortgage company but the new bank or mortgage company will transfer all of said items (hereinafter called the Trust Fund) to three liquidating trustees to be appointed by the Judge of the District Court of the District of Nevada having jurisdiction thereof. Said trustees must be depositors. Said Trust Fund shall be held in trust and shall be distributed pro rata from time to time by said trustees to the creditors holding and contributing the aforementioned portion of claims. The trustees shall make no charge for their services but they shall be entitled

Whenever the new bank and/or the mortgage company and the Trust Fund are each interested in any asset or line of credit, the new bank shall have a first lien upon the security, if any, accompanying such asset or line of credit, the mortgage company shall have the second lien thereon, and in such order shall be entitled to receive out of said asset or line of credit or the security therefor, the full amount of their respective interests therein before any part thereof shall be recovered by said trustees.

The new bank and/or mortgage company for a period of two years from and after the organization of the new bank shall have the right to substitute any of the unliquidated assets retained in the new bank and/or mortgage company (or renewals thereof in whole or in part when renewal is made) for any of the trust assets or the proceeds of liquidation of same, said exchange to be limited to bills receivable and to be upon the basis of original purchase price with mutual adjustment of interest to the date of exchange or substitution, that such exchange shall only be made between assets originating (at time of transfer) from the State Bank Examiner in charge of Bank of Sparks, Inc. No distribution shall be made by the trustees until after the expiration of said period of substitution.

At any time after the expiration of said period of exchange or substitution the liquidating trustee or trustees shall, upon the written request of the owners of a majority in amount of said participation certificates sell the remaining trust assets at public sale to the highest bidder for cash after having given such notice of time and place of sale as may be required by the creditors requesting said sale, and said trustee or trustees shall thereupon make final disposition of the proceeds of said trust assets then on hand in the manner and for the purposes hereinabove provided. At such sale the new bank and/or mortgage company may be a purchaser of all or any part of said residue of the trust assets.

During the entire period while said assets are in process of liquidation by said liquidating trustee or trustees, a representative committee of three depositors or their successors shall be conferred with from time to time concerning such liquidation and shall have full access to the books and records of said Trust.

It is understood that said trustee or trustees shall exercise their powers jointly, but a majority thereof, if three trustees be appointed, shall control, and in the event of a vacancy the powers and duties thereof may be performed by the surviving members. A majority in interest of the creditors holding participation certificates in said trust may elect new trustees at any time upon giving thirty days' written notice of such election to each depositor and creditor holding participation certificates.

Forrest W. Eccles, E. S. Dyer and J. Clarence Kind, are hereby designated as the executive committee of the depositors' committee of said suspended bank and are granted the power and authority and shall, when said new bank and mortgage company have been organized as provided in this agreement, transfer to said new bank and/or mortgage company the undersigned's claim against the suspended bank so as to enable the new bank and/or mortgage company to use the same in part in purchasing and acquiring the assets of said suspended bank from the State Bank Examiner. Said executive committee or the new bank and/or mortgage company as the successor in interest of

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The final form of waiver which deduct from the proceeds depositors the closed Wingfield the actual and banks asked and cost carrying on said The forms together the necessary cost of other than the Bank collections, attorneys fees, court Sparks will be the same costs, and the like, and the said change name. Waivers trustees shall have the right the national banks are very compromise all them, to renew and extend the These waivers will be mailed obligations of debtors to said trust, depositors the and to file suits, foreclose mortpart next and of the gages, purchase foreclosed property reopening banks depend speed foreclosure sale for the benefit which substantial the the trust estate, and take forms returned. such steps they in their ment deem necessary for the liquidation of said assets either lection compromise of same and to in every way with the same as fully as though assets were fully owned by said liquidating trustees in their right. Said trustees shall have the power and at the expense the estate make such expenditures and disbursements out trust estate may necessary the protection and the assets thereof, for such purpose may borrow money and pledge all or any part of the security The undersigned and each entitled to participate in Trust Fund shall receive pation certificate representing her interest the trust assets. Said Trust Fund shall be sively the benefit of the positors creditors of Bank Sparks, but and when depositors paid full the amounts their original claims against said bank, together with terest the rate four per (4%) annum from November then any shall distributed to the stockholders Bank of Sparks, their cessors interest, their interests appear. Whenever the new bank the mortgage company and Trust Fund are each interested any asset line of the bank shall have first the security, any, asset line credit, the mortgage company shall have the second thereon, and such order shall be entitled to receive of said asset or line of credit the security therefor, the amount their respective interests therein before any part thereof shall be recovered by said trustees The bank company for period two and after the organization the bank shall have the substitute any of the assets retained in the mortgage company newals thereof whole renewal made) of the proceeds liquidation said exchange be limited to bills receivable and be upon the basis of original chase price with mutual adjustment interest to the date of exchange substitution, that such exchange shall only be made between originating time transfer) from the State Bank Examiner charge of Bank of Sparks, Inc. No distribution shall be made by the trustees until after the expiration of said period of substitution. At any time after the expiration said period of stitution the liquidating trustee trustees shall, upon the written quest of the owners of majoriy amount said participation tificates the public sale to the highest bidder for cash after having given such notice time place may be required by the said and trustee trustees shall make final disposition the upon proceeds of said trust assets then on hand the manner and the hereinabove purposes such sale new bank company may be mortgage chaser of all any part residue the trust assets. During the entire period while said assets are in process of liquidaby said liquidating trustee trustees, three depositors their shall be conferred with from time time concerning such dation and shall have full books records of Trust. the understood that said trustee trustees exercise their but majority thereof, jointly, three trustees appointed, and in the event control, and duties thereof ancy powers performed by the surviving majority in interest members. creditors holding participation certificates in said trust may trustees any time upon written notice thirty such election each depositor creditor holding participation tificates. Eccles, Dyer and Forrest Clarence Kind, hereby nated the committee of said the depositors' bank and are granted the suspended authority and shall, when power said new bank have been organized pany this agreement, transfer in said bank and undersigned's claim company the suspended bank so against enable the new bank to use the company and acquiring assets of said suspended State Bank Examiner executive the new band mortgage successor in interest the authorized signee the make proof claim its the State Bank Examiner in charge of said suspended bank obtain the customary Receiver's certificate issued favor the new bank mortgage company and said committee said new bank company authorized release, cancel and surrender said Receiver's certificate Bank Examiner part consideration the purchase and acquisition by the bank mortgage pany of the assets suspended bank, and such surrender and cancellation of said certificate said State Bank Examiner shall stand fully released from all claims of the undersigned to participation the assets said suspended bank and delivery of the assets said suspended bank to said bank shall operate in of and final dividend to the undersigned full payment his or her present claim against State Bank Examiner. This agreement shall not waiver stockholders any stockholders Bank of Sparks. but such liability be enforced by the trustees named, and all notes, securities judgments obtained by the said trustees count thereof shall be included the Trust Fund to set for the benefit of depositors Bank Sparks, value the assets Bank of Sparks, classified determined by the appraisals to good but slow the basis net credit of the positor creditor in the bank mortgage company. and each depositor creditor shall be entitled to that proportion said net assets his deposit credit shall bear to the total of the good and good but assets of Bank of Inc. The undersigned, from his said credit, payable only from hereby subscribes thereof to capital stock of and mortgage company thereof to the capital and surplus the bank understood and agreed that the legal title to the entire capital stock the mortgage company shall vested in the bank trust for the subscribers the capital stock but each subscriber to the capital stock mortgage company shall receive participation certificate which shall represent interest in the assets of the mortgage company after its debts, obligations, and have been The assets of have been appraised. and under this plan and agreement and accordance with said the following distribution of assets to the respective banks. made the Trust Fund. the subscription to the capital in mortgage company. the subscription to the capital and plus the New Bank, and the depositor's deposit New will be approximately as using for the illustration:

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WAIVER AGREEMENT OF AND OR OF BANK OF SPARKS,

The depositor and creditor of Bank Sparks, now suspended, tion of execution like ments by such of the other of said bank may and for value received and for the purpose of providing for the of said and other banks commonly known Wingfield Banks State Wells, Nevada; derson Banking Company, Nevada; First Bank, nemucca, Nevada; Churchill Bank, Fallon, Nevada; Bank Sparks, Sparks, Nevada; Carson Valley Bank, Carson, City, Nevada; Virginia City Bank, Virginia City, Nevada; Tonopah Banking poration, Tonopah, Nevada; The Reno National Bank, Bank of vada Savings Trust Company, United Nevada Bank and Riverside Bank, all Reno, Nevada), hereby sell, transfer, convey and over unto the executive committee named, his, her claim said suspended Bank Sparks, Inc., trust for the and hereinafter and hereby agrees follows: That the assets of each of said Wingfield banks shall separately appraised appraisers shall be appointed follows: the Receiver The Reno tional Bank, one the Receiver the First Bank of nemucca, one by State Bank Examiner Nevada, and two others, selected by Victor Palmer, who acts for certain corporations the ganization the Wingfield and one selected the man the respective depositors' committees of the present closed banks. All assets of this and all the other Wingfield banks determined the appraisers to be good good but slow shall be transferred and assigned to company organized and corporated be qualified rower the nance other mental loan and to NEW BANK, which shall have capital and surplus $500,000.00, and which shall have charter and the to operate main bank with branches. The value the par the bank The capital of the mortgage shall approximately company but said capital depending upon the transferred under the appraisals classifications. par value of the shares the shall be mortgage company each. The appraisers herein provided determine and fix the assets of the Wingfield banks which shall be placed and specicic assets which shall placed the company. The assets placed in the band mortgage company and acquired from the State Examiner in charge the pended equal the the suspended bank assumed paid by the lutely bank mortgage pursuant to this pany and under like executed other creditors, and under contract with the State Bank aminer shall entered the acquisition said assets. Said amount of assets placed and tained in the bank shall subject to adjustment amount to equal the sum actually dto be at the time necessary acquisition, compensate the bank mortgage for the total liabilities pany paid by The by the bank assets are to taken company face value with adjustment interest the date transfer of asset interest bearing, when asset, whether interest any may be taken bearing the value fixed by the appraisers appraised value be agreed such the bank and the upon Bank Examiner. assets of Bank of Sparks, which deemed by the losses shall praisers sold, transferred and assigned be the new bank and the bank company will transfer all mortgage company said items (hereinafter called of Trust Fund) to three liquidattrustees to appointed of District Court of the Judge District of Nevada having thereof. Said trustees must Trust Fund shall depositors. trust and shall held tributed rata from time trustees creditors said contributing the and claims. The portion make charge their they

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abilities, $804,807.60; owed to depositors exclusive of public deposits, $508,422.33; waivers signed $278,000.

Virginia City Bank — Liabilities, $226,066.11; owed to depositors exclusive of public deposits, $145,519.74; waivers signed, $106,000.

Bank of Sparks—Liabilities $712,254.48; owed to depositors exclusive of public deposits, $634,645.19; waivers signed $387,000.

The essential parts of the complaint which is the same for all banks, follows:

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"That the said Edward J. Seaborn, as acting bank examiner and/or superintendent of banks, has heretofore caused notice to be given by advertisement in one or more newspapers published at ———, —in the County of ———, State of Nevada, for two successive months, notifying and requiring all persons having

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RECEIVERSHIP IN NINE WINGFIELD BANKS IS ASKED

Dividend Of W Cents Is Ordered For Reno Depositors

CARSON CITY (Nev.), Nov. The question of receivership of the closed Wingfield state banks, nine in number, is now formally before the district court here. Judge Clark J. Guild has issued an order to show cause, returnable Novemb 15th, why he should not name receivers for the state banks of the chain. The court order followed one in which he ordered that a dividend of 25 cents be paid to depositors of the Riverside Bank of Reno and a dividend of 10 cents to the depositors the Bank of Sparks. The petition for a dividend for dend.

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Bank Receiver Action Upheld

CARSON CITY, Nev., Feb. 9 (JP)The right of District Judge Clark J. Guild to appoint receivers for seven Neveda state banks, all of which were members of the defunct George Wing. field banking group, was upheld in a unanimous decision of the Nevada supreme court today. Institutions affected by the ruling are the Bank of Nevada Savings and Trust company, the United Nevada bank and the Riverside bank, all of Reno; the Bank of Sparks, the Carson Valley bank at Carson City, the Virginia City bank and the Tonopah Banking corporation.

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Second Dividend Will Be Paid by Bank Today

SPARKS, May 2.—More than $56,000 will be paid to depositors of the closed Bank of Sparks tomorrow. The money represents the second 10 per cent dividend paid by the bank since it closed in 1932.

The dividend checks, of varying amounts, were completed today and will be distributed at the bank tomorrow by E. R. Simms, assistant bank receiver.

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Second Dividend Will Be Paid Bank Today by

SPARKS. May than $56,000 will be paid depositors the closed Bank of Sparks tomorrepresents the ond cent dividend paid by the bank since closed in 1932. The dividend checks, of varying amounts. were completed, today and will be distributed at the bank toby Simms, assistant morrow bank receiver.

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20-CENT DIVIDEND IS ORDERED FOR RIVERSIDE BANK

A twenty-cent depositor dividend, calling for the distribution of $123,354.81 to depositors of the Riverside Bank, was authorized today by Judge Clark Guild at the request of Leo F. Schmitt, receiver.

The dividend checks will be ready for distribution next Friday morning, Schmitt stated.

A dividend of twenty-five cents was paid to depositors of the Riverside bank several months ago at which time nearly $200,000 was distributed.

Depositors of the Bank of Sparks received dividend checks for ten per cent during the past week.

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Much Money Paid Bank Depositors

SPARKS, Aug. 1.—Approximately 85 per cent of the $112,120.86 dividend declared July 10 by the Bank of Sparks has been paid, E. R. Simms, deputy bank receiver, said today.

The bank is very anxious to dispose of funds declared for dividend payments, Simms stated, and he urges depositors to call or send for their money as soon as possible. Money also is on hand to pay depositors for two previously declared dividend payments of 10 per cent each.

Approximately $23,000 remains to be paid of the three dividends declared and depositors may call for it any time, Simms pointed out. Forty per cent of the amount of depositors' money in the bank when it closed has been declared payable since the bank catastrophe in '32.

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SALARY COSTS CUT; DEBTORS FACING SUITS

Lax Borrowers Who Do Not Cooperate Hit by Administrator

The small percentage of persons who are indebted to the seven closed state banks and who, in the opinion of Leo F. Schmitt, receiver for the institutions, are not making the proper effort to liquidate such indebtedness may, in the near future, find such indebtedness reduced to judgment with a levy to issue on any of their assets.

This suggestion was contained in a letter written by Schmitt to Judge Clark J. Guild, and which accompanied his quarterly report of the seven banks, Riverside bank of Reno, United Nevada bank of Reno, Bank of Nevada Savings and Trust company, Reno; Bank of Sparks, Carson Valley bank, Virginia City bank and the Tonopah Banking corporation.

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Soon Is Likely

SPARKS, Nov. who had money in the Bank of Sparks when closed in 1932 will per cent payment on their money before Christmas, bank receivers stated today. If the dividend declared, will bring the total payments up to 40 per cent, excluding the initial payment of 10 per cent which was declared soon after the bank was closed. Depositors who have not called for former payments declared on their money are urged to da so immediately. More than $10,000 on hand to pay depositors for the payments declared the three different intervals.

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has strongly indicated that a solvent banking institution can at any and at all times be maintained in this city and this fact is very evidently indicated in the statement of the present bank receiver where it shows that one of the largest, if not the largest, dividends that has been declared has been made by the Bank of Sparks, and;

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Petitions For Bank Sparks for Ready

SPARKS, Nov for the proposed bank in Sparks distributed to few stores here toand several signatures were tained to start the list of residents who would do their banking in Sparks bank were established Reactions toward the petitions reported very favorably and no refused to sign the document person The petitions be more distributed tomorrow and day and all residents are urged them Members of the banking headed by Fodrin, and mittee, representatives various tions will circulate the petitions clubs, churches, service among and churches canganizations of the town from house to vass also be made, Fodrin house may stated. submitted to the The petition idents follows. To the Directors of the First Bank of Reno Gentlemen: tional "Whereas the people of the of Sparks, county Washoe, have been without bankof Nevada, facilities since November first, ing 1932 and have been unable at any since the above mentioned time, transact the ordinary banking business this community, and, "Whereas the history of banking of Sparks since the the city stallation of the Bank of Sparks has indicated that strongly vent banking institution can at any and at all times be maintained this city and this fact very indicated the statement dently the present bank receiver where shows that one of the largest, dividends that has not the largest, been has been made by the Bank of Sparks, and, "Whereas the present system of Southern Pacific employes, well business and other residents, being compelled to do their banking business Reno direct detriment to the of Sparks and takes city from the city of Sparks away volume of business to which large justly entitled, and; "Whereas the business interests and the residential interests and the people generally believe that the tablishment of bank in the city of Sparks would be of mutual fit to those who organize the bank and to the hundred residents the city Sparks: "Therefore, the undersigned citizens, tax payers and residents the city of Sparks petition your bank establish branch in the city of Sparks and promise to you that if you do and will establish such branch that they will transany and all banking business through your agency and that we will do everything in our power to secure the aid and assistance of those with whom we come in tact to transact their banking business through your institution."

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Depositors Paid $43,000 by Bank

SPARKS, Dec. 29.—More than $43,000 of the recent dividend declared by the Bank of Sparks has been collected by depositors during the last two weeks, bank officials stated today.

The balance of the $56,000 which is on hand to meet the payments is slightly less than $13,000.

Nearly $23,000 is still at the bank to be paid depositors on dividends declared prior to the recent 10 per cent payment, E. R. Simms, bank receiver, stated. The greatest portion of this sum consists of small deposits and out-of-town claims.

It is urgent that all depositors entitled to money from the dividend payments call for it immediately in order to avoid unnecessary expense in handling the money, Simms said.

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SPARKS, Dec. than $43,000 of the recent dividend clared by the Bank of Sparks has been collected by depositors durthe weeks, bank officials stated today. The balance of the $56,000 which on hand to meet the payments slightly than Nearly still the bank to be paid depositors on dividends declared prior to the recent 10 cent payment, Simms, bank receiver, stated. The greatest tion of this sum consists of small deposits and claims. It is urgent that all depositors entitled to money from the dend payments for immediately in order to avoid sary expense in handling the money, Simms said.

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RFC Loan to Reno National Is Called Depositors' Blow

Had the Reconstruction Finance corporation not loaned money to the Reno National bank in 1932 depositors in at least four closed banks would have benefitted, Leo F. Schmitt, receiver of the bank, testified in the federal court last week.

The testimony was taken in Schmitt's suit against the RFC for an accounting and judgment for $188,000. The suit was brought by Schmitt in behalf of five of the closed banks that hold split loans, the security for which was pledged the RFC for part of the $3,500,000 loan made to the bank.

The receiver testified that subordination agreements executed by the officers of the banks were unlawful. He held that the banks received nothing in return for subordinating their notes in order to make it possible for the Reno National to borrow the money and, therefore the RFC has no legal right to hold the paper and deprive the other banks of their equity in it.

In support of his theory he testified that the banks gained nothing from the RFC loans. He stated that as a result of the loans to the Reno National, the action of the Reno National in transferring bad paper to several of the other banks, and the transferring of cash from certain banks to the Reno National, there were net losses or gains between March and November, 1932, to the depositors of the several closed banks. These banks follow:

Bank of Nevada Savings and Trust company, loss $1,044,767.30.

Tonopah Banking corporation, loss $86,531.51.

Carson Valley Bank, loss $134,142.58.

Virginia City Bank, loss $50,476.27.

Bank of Sparks, gain $41,082.64.

The United Nevada bank and the Riverside bank are not parties to the suit against the RFC as they did not participate in the split loans subordinations. Split loans are the ones in which the Reno National bank made the original loan to the borrower and then parceled out the paper to other banks of the chain.

P. L. Nelson and Schmitt were witnesses for the plaintiff while George Wingfield, Jerry Sheehan, R. C. Agnew, Allard Calkins and E. J. Seaborn testified for the RFC.

Sam Platt represented Schmitt at the hearing and the RFC was represented by A. M. Dreyer of San Francisco, Brobeck, Phleger & Harrison of San Francisco and W. M. Gardiner of Reno. Briefs will be submitted by the attorneys soon.

Aim Was Too Accurate

PORTERVILLE, Cal. (UP) — Too accurate aim with his .22 rifle brought painful injuries to John Champion, 13. Using a cartridge as a bull's eye, John hit his target. The cartridge exploded and a piece of the missile struck him in the forehead, cutting him deeply, and leaving a piece of metal lodged against his skull.

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SPARKS RESIDENTS WILL OBSERVE BANK OPENING

Sparks residents tonight will observe the reopening of the Bank of Sparks with a dinner at Masonic Temple at which more than 150 persons are expected to be present. members of the Sparks Lions club, including Robert W. Baker, F. E. Steiner, A. L. Blundell, H. J. Gazin and Harry Gray arranged the banquet and this afternoon anticipated it will be a complete success.

Program numbers will include violin selections by Anna Blundell, accompanied by Lula Grimmer; reading by Mrs. George Brady, and piano numbers by Stewart Brady. The dinner, which will commence at 6:30 p m. will be served by ladies of the Baptist church. The Rev. P. H. Willis will be master of ceremonies.

The address of welcome will be delivered by E. C. Mulcahy, while other speakers will include Joseph J. Sbragia, manager of the bank. Carl Wente, president of the First National Bank of Reno, L. T. Fife, general foreman of the Southern Pacific Company shops at Sparks, J. C. Goodfellow, superintendent of the Southern Pacific Company, Salt Lake division.

The bank, a branch of the First National Bank of Reno, will open for business tomorrow morning. Staff members to serve under Sbragia have not yet been selected. Sparks residents who have not been able to do their banking at home since October of 1932 have anticipated the reopening of the bank and are expected to become steady depositors.