Show BANK OF ITS 0 WHILE auditors report chois capil al impaired but losses to depositors small we read in the salt lake tribune audit of the condition of the defunct state bank of garfield in panguitch as of july 19 when it went into the hands of the state bank examiner seth as receiver discloses that the banks capital was impaired and it was practically t ti 1 C 1 aly therefore insolvent as far b back a C k a as s 1920 since that time the bank has paid some dividends and the auditors are of the opinion that the stockholders of the institution are liable not only to an amount equal to the par value of the stock they own but also for an additional amount for dividends received when none should have been distributed by the directors an 69 while has been voiced af that the state bank department dead rement acted in too great haste in closing the doors of the institution the facts as reported by the audit would not seem to bear out that statement the audit was nas by the lincoln G kelly company of this city it gives a glance statement of the affairs of the bank as of july 19 last that is essentially about the condition as ag given in the first estimate made by the state bank examiner when the institution was taken over and differs from that in the ag regate as pointed out by mr ir yesterday by only about the auditors place the deficit in the bank at the time at just under against this they estimate that about may be recovered under the stockholders liability provisions in the statute and some som e additional amount from recovered dividends this would give a net loss to the depositors when the affairs are finally wound up by the receiver of something less than the dep deposits orits total of which are demand deposits 20 are savings deposits time ti 0 certificates the auditors estimate of course is contingent on the correctness ness of their valuation of the paper now in the bank and in in addition the cost of the receivership proceedings carried on over nhat hat promises to be quite an extended period will be in part offset by the interest collected on the notes outstanding and in the case of the state bank of kane it is noted that the interest has so far paid the costs of the receivership in any event it is quite possible that the greatest loss to the depositors when the banks affairs have finally bean wound up will be the loss of the use of their money tor for the intervening period the audit makes some revelations as to the manner in which the banks affairs have been handled during the past several years since the period ot of the audit extended back to 1919 during the major portion of this time H C tebbs of panguitch now state senator and chairman of the joint committee on appropriations in the last utah legislature was cash ter ler mr tebbs resigned early this year when the place was filled by D 11 todd jr who was at t the time examiner in charge for commissioner paxton for the state bank of kane |