The Russellville Democrat., 1875-06-24
THE STATE OF ARKANSAS AGAINST STODDARD'S
 BANK.


 BANK.
 In last weeks paper we men, tioned that Chancellor Eakin had delivered an elaborate and inter- estlng opinion in the matter of the state against Stoddard's Bank, for the recovery of some $5s, ,OOO belonging to the state. We had intended to produce the opinion at length, but as it is very exten- sive we will merely give the points touched upon, which are of the greatest interest.
 It appears that the state of Arkansas as complainant in this cause, upon certain state of facts set forth in the bill filed, en- ters complaint and prays that an injunction be issued against said Stoddard Bros. & Co.,, pro- hibiting them from disposing of any of the property, scrip, money or bonds belonging to them until the amount due the state be paid, and that a receiver be appointed for said assetts belonging to said firm.
 In compliance with the prayer of the complainant the order for injunction was made and recelv CT appointed. Said receiver gave the required bond and entered upon the discharge of his duties.
 Subsequently John Stoddard filed a demurrer to the bill filed by the state, on the following grounds: 1st. For want of juris- diction. 2d. For want of equity. 3d. For the reason that there was full and adequate remedy at law. 4th. Because the object ofthe bill was to enforce a trust, the subject of which was commingled and lost. 5th. Because it does not show that the trust fund existed, or was in the control of the de- fendants at the time the suit was commenced. 9th. Because it em- braces in it's object property not embraced in the trust. 7th. Be cause the state having accepted the draft is now estopped from setting up trust. 9th. Be cause the complaint is uncertain and insufficient. Again, subse- quent to the filing of the demurrer of Stoddard, k. w. Parker, assign ee in bankruptcy of the firm of Stoddard Bros. & Co.,, was made a party defendant and filed a mo- tion to dissolve the injunction and vacate the order appointing a re- ceiver. The causes for this mo- tion are the same as those alleged in the 2d, 4th, 5th and 9th clauses of the demurrer.
 The chancellor after an able and exhaustive argument upon both sides, and clear and concise re- view of the case, rules that the demurrer of Stoddard is not well taken. also, that the motion to dissolve the injunction, and vacatc the order appointing a receiver, shall, for the present, be refused. The chancellor takes the posi- tion that the state stands in the attitude of a preferred creditor to- ward Stoddard's bank, and that Stoddard's bank must and shall be held for the sum due the state. But the state, by pursuing this fund and endeavoring to recover the same from Stoddard Bros. x Co.,, releases none of her other se- curities. The treasurer still re- mains liable, with his securities, for any loss to the state, and suit may at any time be instituted against them. Such is the case and the ruling of the chancellor. We see no cause to doubt that the state will yet be made safe and whole. The people of Arkan- sas demand vigorous prosecu- tion of this matter, and that the treasury be reimbursed. It must be done; if it cannot be made out of Stoddard's bank, let it be made out of the treasurer's bond. This is just what official bonds are for, and the people demand that off cials shall be held to strict ac- countability under their bonds.
 RICE IN ARKANsAs.-rhe Clar- enden Age, says: