The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-03-06
CLAIM FIRST DRAW
SAVINGS BANKS HAVE PLENTY OF
LAW ON THEIR SIDE.

Statutes of Most States Make Them Pre-
ferred Creditors of National Banks
Holding Their Funds on Deposit-Su-
preme Court Hears Argument, i'm a Case
Brought Up from the New York Su-
preme Court, Which VIII Settle "a Null
titude of Similar Cases-Case of Sam
Hickory-Income Tax Case to be Argued
Washington, March 5.-The supreme
court of the United States today heard
arguments in the case of Charles Davis,
plaintiff in error, VS.. the Elmira Saw
ings bank. The case involves the ques-
ton as to whether the claims of savings
banks shall have preference over other
claims on national banks which have
failed and involve large interests. 1t
appears that at the time this case was
in the court in May last there We're
more than s1S,000,0G0 of savings bank
deposits in national banks in New
York alone. Nearly all the states have
laws giving various preferences in the
administration OF the assets Of insolv
ent banks. There are in charge of the
comptroller of the treasury the assets
of more than 100 national banks in pro-
cess of administration. Suits have
been brought in other states upon
such preferential statutes and more are
threatened The monies realized from
the assets of these failed national banks
are in the treasury awaiting distr1bu-
ton by the comptroller to the creditors
of the different banks and the United
States is a creditor. The decision in
the present case will, when made, de-
termine what shall be done in all sim
liar cases with such monies and VIII
not only affect the savings banks but
the depositorS Of the failed natlonal
banks as well. There is apparently
conflict between the state law of New
York and the congressional statute
bearing, on the question as there is be-
tween the national law and laws Oh
various states.
The supreme court of New York and
the appeal courts of that state nave
both held that the state law was valid
and that he savings bank was entitled
to a preference in the settlement OF
the affairs of the Elmira National bank,
in which the funds of the Elnlira say
ings bank were deposited and of which
Davis, the plaintiff in error, is receiver
The case of Sam Downing alias sam
Hickory was revived to the extent that
the hearing on it was postponed Tor
three weeks on the suggestion OF eX-
Attorney General Garland who said 1t
was a very tough case" though he did
not particulariZe. The case comes to
the supreme court from the circuit court
for the western district of kansas,
where it was tried by Judge Parker,
who in this case as in others, appears
TO have FLASHED somewhat with the su-
preme court. This is the second time
the case has been before the supreme
court Hickory is an Indian and was
tried and convicted originally OF muir
der committed in the Indian territory.
The argument in the cases involving
the constitutionality of the income tax
law will be heard tomorrow. There are
three such cases on the court docket,
viz: Those of Judge Moore for an in
junction against the collectors OF inter-
nal revenue; of Charles Pollock VS.. the
Farmers Loan and Trust company ct al
and of Lewis Hyde VS.. the Trust COM
pany, all of which have been advanced
and will be passed upon together.
Attorney General Olney has announc-
ed his intention to represent the govern
ment personally.