Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1893-09-07

Milwaukee, Sept. 2.-Receiyer Becker
was asked what knowledge if any he
had that Mr.. Mitchell was preparing
10 question the constiutionality of the
law making him liable for all claims
against the bank. Mr.. Becker said:
50 Tar as the cOnStituiOnality OF
the law is concerned, | do not think
Mr.. Mitchell has the least idea of or
disposition to fight the claims against
him by raising any question. In my
mind there is no ground for any claims
against it and L believe the law is
perfectly constitutional. SO far as the
notes given by Johnston and Ferguson
and Mitchell to secure the bank are
concerned, there is a good considera-
ton for them, and there is no escape.
They must be paid and they cannot
get out Of it,
1t is said by those in a position to
know that the sole object Of Senator
Mitchell in denying service in certain
suits on the grounds that he was at the
time on his way to Washington in
his capacity as Il senator was to avoid
being forced into trials before the same
steps have been taken against John
Johnston, that is to say, Mr.. Mitchell
proposes to stand UP to the rack, but
that he proposes to have company.
Milwaukee, Sept. I'm Judge john
sons court this morning, when the mo-
ton was reached in reference to the
claim of a preferred creditor by the
city, Attorney 3 X. Miller asked the
court to postpone the hearing for two
weeks
He said that within the past few
days conference of creditors of the
Mitchell bank, representing over ST.
100000 OF deposits had been held, and
it was resolved to ask the court for an
extension Of two weeks in order that
the attorneys representing them could
fully post themselves III the matter.
He said it was a matter of great con-
Germ to the rest Of the creditors if the
claim Of the city was sustained.
Judge johnson extended the time
for the hearing, Of the motion by the
city until one. week from today, but he
decided to go, ON with the hearing of
the motion by Alex d. McDougau ask
ing for more definite statement of
the city funds deposited in the bank.
City Attorney I\rez opened the argu-
ment by reading an affidavit by him
self as to the amount of the different
city funds and their character depos-
tied III the bank.
City Attorney Krez in his affidavit
4tlpOpS at.ll linh
amount to S6,7f0,374O4, and the as
sets 10 S7,OO0yG0O and that the re-
ceiver has now Oh hand over 100000
in cash. He says that when the bank
failed, $4,000 only was at the DISPOSE
tion of the city treasurer, and that the
current expenses, of the city amount to
about 100000 q month, that there is,
now due to owners of property con-
demned for the Sixteenth street via
duct about $4,000, and to the different
persons for work. labor and materials,
about SIT, 900 and that in addition to
the current expenses about 100000
more will be required for each month
until December, and that the city has
received about $4,000 by advance pay
ment of taxes and about $4,000 by
loans on notes.
The security. required of the bank
consists of a bond for S1,5OO,O0O exc
cuted by the bank as principal and
John l.. Mitchell, John Johnston and
David Ferguson as sureties.
John Johnston and David Ferguson
are declared insOlvent and John L.
Mitchell is thus personally liable for
all the debts of the bank to the full
extent of his property, and as senator
Of the United States has claimed and
may claim his immunity from process
for a number of years. That in the
amount claimed as due the city is
S20,69S.25 as interest from March 1,
1893, to the time of the failure.
Arguments On the petition were con-
Guided late this afternoon and Judge
Johnson took the matter under advise
mpnt