The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-11-07
All oGher drafts VIII nave to take the SAINT
course as the other claims against the bank.
Banking Company Suits in Chicago.

Banking Company Suits in Chicago.
Inter Ocean of Yesterday.
Judge Anthony heard and decided the attach
ment cases against the late Indiana Banking
Company OF Indiana, yesterday. This bank
was placed in the hands of John Landers as re-
ceiver. On Aug 10, Immediately after the sus-
pension of the Indiana Banking Company, two
attachments against them were sued out by the
Metropolitan Grain and Stock Exchange and
Henry Hayne and he Indiana banks deposits
in the National Bank of America were garn-
isheed. On Aug. "a another attachment was
sued out by Alexander W. Pond for 81, 100, and
the same deposits were garnisheed. Judgments
were had by default against the In0iana bank.
The National Bank of America, in answer to
the interrogatories in the case of the Grain Ex-
change, stated that at the time Of service of the
hrst writ, 1t mad In hand $l3, S7S6l deposits OF
the Indiana bank, and in the next few days re-
ceived So 4O963, making SIG .2SS. "a in all; that
it charged off against the Indiana bank S., $40 60
to meet the first attachments and then went on
paying checks drawn by the Indiana bank, paid
q note for its account, and paid judgm in
attachment before Justice Mech, until it had
left balance on account of So ,644.17, which it
transferred to the account of j. Landers re-
ceiver of the Indiana bank. 1t further set up
that the Indiana bank was guarantOr on note
held by the National Bank of America, which
was not yet due, and claimed the right to retain
the total balance in its hands as security for the
payment of the note when due. The Metropol-
itan Grain Exchange and Mr.. A. B. jerks, It's at
torney. moved for Judgment against
full amount of the deposits through Mr.. Merritt
Starr attorney for Pond in the later suit, APP
peared. move that the Judgment be rendered for
the full amount and stand as a fund for the later
attaching creditor. Mr.. jerks stated the case.
Messrs. Norton and Larned, of Jewett, Norton &
Larned, answered for the bank. and Mr.. Starr re-
piled for the creditors.
Mr.. Isaac G. Lombard, president of the bank,
was present throughout most of the argument.
judge Anthony sustained the motion for judg-
ment and held that under the decisions of the
Supreme Court in Stahl VS. Webster, IL ILL.,,
Sill; Hitchcock VS.. Watson, Is ILL.,, 2S9; Gillian
VS.. Nixon, 26 ILL.,, so, and later cases, the suit
was, in effect, by the Indiana bank, trustee,
against the garnishee, for the use. first, of the
attaching creditors, and for it's use as to any
surplus; that the issue, therefore, was how
much was the Indiana bank entitled to judg-
menJ for at the time of service of the first WRIT
Any disposition of the fund made By the
garnishee after such service was at its own
risk. He also held that under Section 5 OF the
garnisment act and Section 27 of the attach
ment act creditors attaching subsequently to
the first suit but at the same term, were emit
tied to share pro rata in such Judgment for the
full amount due the Indiana bank at the time of
service of the first writ He denied the validity
of the transfer 20 the receiver in Indiana re-
jected the set-Of claimed by the bank, and gave
Judgment for $4,000, which he ordered to stand
as security for the other attaching creditor. Mr..
Norton prayed an appeal to the Supreme Court,
which was allowed.
Under this decision it will he unsafe for banks
whose deposits are garnisheed to pay out any
moneys on checks by the defendant garnisheed
without leave OF court.