The daily journal. (Salem, Or.) 1899-1903, 1901-12-17
SUIT
TO STOP
INTEREST
On Money Loaned By
State Treasurer
In Direct Violation of the
Laws of Oregon
To a Private Bank for His
Own Benefit and EmOlu-
ment.

Snit was brought in the Circuit Court
last Saturday to enjoin the receiver OF
the Williams and England Bank from
paving to Phil Metschan, ex-State
Treasurer, w. II. Odell, ex-Clerk Of the
State Land Board; T. j. Swafford, ex-
City Treasurer Of Salem, aud Il. 9. Gilt
ner, agent, the balances due upon their
claims against the bank The suit was
commenced by Theodore Noli, a credi-
tor Of the deiunct bank. Nolf alleges
that Giltner deposited $4,000 o etate
funds in the bank for Metschan, then
State Treasurer, and that the money
thus deposited was at all times state
funds. II is also alleged that Phil Nets
chan deposited in the bank in his own
name $s,6l3.GO OF state funds, and $3.50.
.73, which was interest upon state funds
wrongfully and unlawiully deposited in
The bank. The complaint continues:
The said plaintiff alleges that the sew
eral deposits Of $4,000 aud SS6l3.6O
were unlawfully aud corruptly deposited
with the said Williams & England Bank
ing Company, through the trustee alore'
said, with the understanding that the
said Metschan should receive on account
of the use Of the said money by the said
Williams & England Banking Company,
A rate Of interest thereon for his own
use and profit.
The said plaintiff alleges that there
has been paid from time to time to the
said E. q. Giltner, as trustee OF the said
Metschan, divers sums OF morey
amounting in the aggregate to 80 per
cent Of the principal sum 30 Wrongiully
and unlawiully deposited with said
banking company by the said Metschan,
in additien to the t7S9.73 Wrongiully
paid to him on account OF the earnings
Of said money, and as interest thereon,
which has been hereinbeiore specifically
mentioned.
Corresponding allegations are made
regarding the claim Of Odell for $5,O4I21
and Of Swafford for 7,349.33
1t is alleged that the plaintiff had no
knowledge OF the unlawful nature OF the
claims Of these depositors atthe time his
claim was presented, nor at any time
prior to November. 1901 that the funds
of the bank are not sufficient to pay al
the creditors in full, aud that the de-
iendants ought rot Oe allowed TO receive
interest upon money unlawiully deposit
ed in the bank. The plaintiff asks that
the Receiver, W. 4 Slater, be restrained
from making any further payments 10
the defendants, and that he be directed
TO bring suit against any of the defend
ants 10 recover any funds nnlaW Wlully re-
ceiyed by them.
This suit has the same purpose as
proceeding brought some some time ago
by Bar ker A, Bush against the defend
ants, Metschan, Odell and swaiiord.
The contest made by Blsh Was by way
of an objection in the original receiver
ship suit. Judge Boise held that since
theclaims objected 10 had been eilo~ed
by Judge Of competent jurisdiction, he
could not, in the same suit, disallow the
the claims. This suit was therefore
brought by Noli 10 impeach the
decree OF the court in the re-
ceivership ease on the ground that
the facts we're not presented b'tore the
court and the Illegal nature Of the claims
Was not knoWD. The present suit II