The Wichita daily eagle., 1894-09-22

The bank wop victory yesterday.
Judge Williams rendered verdict in the
United States court which is of great
value. not only to the depositors of the
Wichita National bank. but TO the citizens
of this city as WELL The decision insures
! the recovery of S24, 0e0 by the bank which
was heretofore placed among the doubtful
assets.
The case was brought by Ottenberger
Bros, against the Wichita National bank
to set aside mortgage given by Corner,
Faruum & Co., To the bank previous to
the assignment OF the firm The plain
| tiffs claim that the mortgage was of no
value, as it bore the same date of the as
signment, and hence the bank could not
be considered as even preferred creditors,
and for these alleged reasons they asked
that the mortgage be set aside.
AT the time of the failure of the spice
mills of Corner, Farnum & Co., .he firm
were indebted TO the bank in the sum OF
S24, 600; this they secured by giving the
bank chattle mortgage on all the goods
and chattels of the firm. When the as
signment became known Ottenberger
Bros, brought an injunction suit in the
ing the bank from disposing of
the property secured by the mortgage, and
this was the case decided yesterday. The
Judge held that the mortgage was valid
and the bank could recover. aud the re-
naming creditors would have to take
what was left of the assets of the firm To
pay their claims.
As result of the suit the receiver, ". s.
Corbett, could not realize from the prop
e. he nd he pgf MI orda
of the court prevented the bank from dis
posing of the property. BY the decision
the bank mortgage will be satisfied first
and the business of the late firm Will be
speedily settled.
There was great rejoicing among the
bank officials and their friends yesterday
over the decision. Mr.. Walker WAS seen
at the bank and said: "The decision is of
great value to us and believe will enable
us TO resume. Heretofore this claim Was
placed among our doubtful assets, and we
could not estimate what would be our por
tion, If the mortgage was set aside and we
had to take our pro rata with the rest of
the creditors. By the decision our claim
will be paid first and l believe it will ed
able us 10 resume at an early date. III the
creditors of the bank could only view the
condition in its true light, and their
own interest we could resume in a few
days As it is a portion have signed the
Wnile large nave
10 do so. lt appears they have an idea
that by holding out they can come in and
draw their full amount as soon as we open.
Now this is the very thing we cannot do
as under the national banking law, and by
instruction Of the comptroller OF the cur
rency there Can be no preferred creditors
If the depositors would consult their own
interest they would readily sea that all
must come in upon equal footing BY re-
suming we would be able Co collect our
assets much more rapidly and all could he
paid at u much earlier Gate than mad in
the agreement. President Levy when
seen said:
THE disposition of this case removes the
principal uncertainty hanging over the
future of the bank. All that is now neces-
sary is the signing of contracts by credi-
tors, who by holding out are eudeavoring
TO secure an advantage of other depOsitors
This, the officials of the bank Will under
no circumst ance permit to be done. All
will and must share alike; no advantage
has ever been given in the past and the
same course will be pursued ia the present
effort iu the direction of resumption"