The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-08
There IS A CLASH
Receivers of Devlin Properties
and Bank Differ.
Former Want to TakeAll Devlin
Properties.
QUESTION ABOUT 1T.
Mr.. Bradley Thinks That Bank
Can Hold Securities.
A. A. Hurd and Cliff Hfsted, At
torneys for Receivers.

| A A. Hurd and Clifford Histed were
at noon appointed by James E. Hurley
and Cyrus Leland, receivers in bank
ruptcy of C. J. DevIin, as their at
torneys, to advise them. A legal fight
will probably ensue between the re-
ceiver of the First National bank and
| the receivers appointed by Judge Pol
lock for the Devlin properties in the
voluntary bankruptcy proceedings
over the possession of the $1,1SO,334
securities and collateral which Mr..
C. ]. Devlin- turned over to the receiv-
er of the First National
It will be the effort of the receiver
/ of the First National to hold intact
the securities for the depositors and
keep Cyrus Leland and James E. Hur-
| ley, receiver in bankruptcy, from call
| ing those securities into the common
pool. That there will be decided eff
fort on the part of the latter gentle
men to increase the assets of the COM
mon pool there is ne question and one
of the receivers acknowledged that in
tention. 1t was thought yesterday
that there was no question but the
property held in favor of the deposi-
tors at the First National would have
| to be turned over to the receivers in
! dAlkIQpLCy Out temporary 6IeCSlV6T
| Bradley of the First National rather
scouts that idea.
There is considerable question:"
said he, whether the receivers in
| bankruptcy can touch these assets of
the bank The bankruptcy law per-
mitS a man to fulfil his pledges made
and this would be considered in the
nature of a pledge. There is a legal
question involved which will have to
be determined. An effort will doubt
less be made to pool these securities
! held there with the remai44der. The
action of voluntary bankruptcy will
not aid matters here, if anything it will
! tend to hinder, the probabilities being
! that certain assets will be tied up.
From the present rate of progress I
doubt very much whether we can
make any StatementSss5f the condition
of the bank before week after next.
rather think that we will have to work
| the whole of next week before we can
determine how things stand. We can
not make mistakes and the system is
very elaborate"
I Slips will be sent to each depositor
and creditor of the bank giving a full
statement of the conditions when the
| report of the temporary receiver is
finally ready for publication. F. S.
| Oldham, an attorney connected with
the department of justice at Washing
| ton, D. c., will arrive to advise Mr.
Bradley on the legal aspects of the
| situation. Robert Lyons, special agent
OI the government, is the OnlV Oth6r
employe of the United States at work
now on the books of the First Nation
| al, e. F. Ames, bank examiner, having
| left at noon upon orders from WASH
| ington.
A meeting of the creditors and deposi-
tors of the First National will be held
at the Commercial club rooms Monday
evening at o'clock for the purpose of
erecting an organization for their
mutual protection and benefit. A re-
i M ieyT hot oil of ,-,t
creditors be present. Certain questions
which have been agitating the deposit
tors with reference to the bank tvill be
submitted to Receiver Bradley by Sam
Radges at an appointed conference ar
ranged to be held on Sunday. The re-
suit OF this conference will be made
known at the meeting Monday evening
| At the present time there are a number
| of legal questions which are of consid-
erable interest and which will be con-
| sidered in connection with the other
| business which comes up Monday even
| ing.
| City May Not Be Protected.
The $4,000 bond which was signed by
M. Snattinger and Major VIM: Sims to
| secure the $4,000 deposits of the city is
| perfect according to City Attorney
Drenning. The claim that it has lapsed
is denied by him. Dreaming said: There
is no time limit stated in that bond and
| It is as good now as when first signed.
careless in its bonds. 1t should make
the bondsmen sign UP each year."
M. Snattinger said: 81 signed that
| bond eight years ago when i was con-
| nected with the First National. 1 have
no interest in the bank now 1 had for
gotten all about it until it was men
| toned in the papers. I haven't signed
any bond since that time. don't know
whether it would hold good now or
not"
| ssVVe won't commence action to re-
cover the amount of the deposits from
the bondsmen yet awhile" said Dren-
ming. 1--WE will wait and see how
things come out with the First Ma
tional and what sort of statement the
receiver will make before we do any
thing. 1t may be possible that we
won't have to commence action
| That the First National bank n.y.
pothecated most of its best paper is
the general rumor upon the streets.
| City and is now appearing in Topeka
| bankssfor collection. In a great many
! instances these notes were given by
| depositors who had accounts at the
bank which under ordinary circum-
stances would have Offset to a certain
extent, the notes given. But with the
notes in the hands of innocent parties
| the deposits at the First National will
not be considered to offset in any man.
ner the notes which will have to be
paid in full by the signers. The loans
represented 100000 and most of this
it is understood, was hypothecated.
Weather Indications.
| Chicago, July S.-Forecast for Kan
sas: Showers and cooler tonight;
Sunday partly cloudy; fresh northerly
| winds.
Temperatures in Large Cities.
Chicago. July 81 a. m. tempera-
| n.