The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-10-07
THE CITY WILL SUE
An Action Against First Nation
al BOndsmen.
City Attorney Thinks There Is
a Chance.
BOND NOT A GOOD ONE.
Would Have to Depend on a
Single Surety.
Mayor Has Little Confidence in
the Action.
BOND NOT A GOOD ONE

The city of Topeka viii probably
bring suit against the signers of the
personal bond which was given to pro-
tect the citys deposits in the First Ma
tional bank, which amount to Sc, 1858.
The bond was given to the city as
surety, May "A, 1887. and was signed by
the officers who We're then connected
with the bank. The bond was for $780,
600 and was signed by P. G. Noel. NJ.
Snattinger, Frank Holiday. Vim. Sims
and VIM. Henderson. OF these, P. G.
Noel is dead, VIM. Henderson is no
longer connected with the bank, VIM.
Sims was a director in the defunct bank.
Frank Holiday long ago severed his
connection and removed to the east and
NJ. Snattinger had but a small holding
when the First National went to the
wall
The security as represented now by
these signatures is not particularly
promising The suit when brought viii
have to depend most largely upon what
may be realized from a judgment
against NJ Snattinger who stands we'll
financially. The bond is indeterminate
and no time is specified as to the
length for which it may be considered
good. This is the feature which makes
it doubtful whether the city could really
collect.
F. G. Dreaming, city attorney. main
tains that the bond is good and that
the fact that it Is indeterminate will rot
materially interfere with securing
favorable judgment. "Of course have
not looked into this at any length and
my opinion is only a surface one.
intend to look it UP and give my opinion
to the city council" said he.
Il think that we should commence a
suit said Councilman S. T. Howe,
chairman of the ways and means COM
mittee. 1.-THE county and the state have
already brought suit; the county long
time ago [ think it is about time that
we were doing something. 1 think that
we should get judgment against the
signers of that surety bond make them
paw up and let them get their pay out
of the surplus left of the city's deposits
after the liabilities of the bank are paid.
City Treasurer Hale presented check
on the bank for the amount Of the
city's deposits and asked them to set
aside that money but they didn't do it."
81 don't believe we can get any
thing now said Mayor Davis. IF
the county and the state have brought
their suit the city doesn't stand very
much of a show. The court will GER
tainly recognize the party first whose
judgment is rendered first and this
would be the one whose suit is
brought first. I don't believe anyway
that there is much to be secured by
this bond
.sWell. we certainly can try it, re-
turned S. r. Howe. why is it that
the state and county are bringing suit?
I would like to know why the attor-
ney. general is taking such an action if
he thought it wouldn't be any use.
There is this about it, they can't hold
the city council dereliet in their duty
if they bring suit. I believe that bond
is all right
Mayor w. H. Davis and Councilman
Howe then had conference with the
city attorney. After this conference
the mayor seemed to take more ia
vorabIe view of bringing a suit.
To protect itself, however, each of
the banks now holding deposits be-
longing to the city will be instructed
to furnish new bonds. The bonds
must meet the approval of the city
attorney.
ssWhat sort of bond would be
prefera bic, personal or surety COM
pany bond ?" inquired the city attor-
new of the mayor and S. T. Howe.
EITHER would meet the approval of
the city council" remarked the mayor.
"I would just as soon have a personal
bond. provided it meets approval.
It's easier to collect on than one signed
by a company" remarked Mr.. s. T.
Howe. He continued: 81 feel perfect
" satisfied with the condition of t1s
banks in the city now 80 did
every one before the First National
broke" was remarked. mo. they
didn't returned Howe. sharply.
well, why didn't they take out the
money on deposit then" came the an
swer. Mr.. Howe said nothing.
The banks which hold city funds on
deposit are the Bank of Topeka. Cen
trail National bank, State Savings
bank. and Merchants National.