The daily sentinel., 1906-10-10
THAT BANK CASE
Short History of Circumstances Lead
ing up TO Action District Court
Took Yesterday i'm De
funct First Nation
al Bank Case.

ems. in the district court yesterday
afternoons in approving the report
of the referee and practically dismiss
ing the receiver of the old First Ma
tionaI Bank, as announced by the
Sentinel yesterday. has called forth
a great deal of comment. especially
among the people familiar with the
falling of the bank and the details
of the long drawn out fight in the
courts between the stockholders and
the depositors of the institution.
Four years ago Henry w. Ross, the
attorney, representing Col. A.
Grout one of the stockholders in the
bank. appeared before Judge Stew.
ems in the district court and asked
that a receiver be appointed tenn
porarily at least, alleging that they
could not get at the facts in the mat
ter or secure certain information
from the books and papers of the in
stitution and further claiming that
the books were not regular.
Upon the showing of Col. Grout
and his attorney Judge Stevens at
that time. June 1902, appointed W
I S. Sullivan, the county judge, as re-
oeiver and later appointed Frank Il.
Haskell, thu clerk of the district
court as referee.
Matters went along for a year or
/ two, in the meantime the fight of
the depositors to make the stock
holders put up double the amount of
money they had invested in the bank
stock started in the court.
In March 1904. Referee Haskell
made his report as referee. No eX-
ceptions whatever were made to the
report which was in detail at that
time.
In the meantime several of the
stockhplders in the defunct bank
filed disclaimers stating that they did
not agree with Col. Grout and Attor-
ney Ross in making a request for 4
receiver for the old bank.
During the past year or eighteen
months the supreme court handed
down decision holding the stock
holders of the defunct bank liable
for double the amount of money they
had invested in stock. the case hav-
ing gone through the lower courts.
Many of the stockholders have paid
up in compliance with the order of
the highest court. Col. Grout. Gov.
Alva Adams and others being among
those stockholders who had to pay
heavy sums.
Yesterday morning Attorney Sam
uen N Wheeler. representing the old
bank as an institution the defendent
in the complaint made by Attorney
Ross and Col. Grout appeared before
the district court and made mo
tion for the dismissal of the receiv-
er, Walter S. Sullivan. ON grounds
that the plaintiffs, Col Grout and
othdrs, were not substantiated in
their allegations, or that the evidence
or the report of Referee Haskell did
not bear out the complaint.
Also on yesterday morning Attor
ney straud NJ. Logan appeared be-
fore Judge Stevens representing the
plaintiffs and filed objections to ths
findings of the referee, two years af-
ter the report of the referee had been
filed. Attorney Wheeler contended
that under the statute Attorney Lo-
gan conld not, after such a lapse
of time, make such objections.
All day long the matter was argu
ed by the attorneys and late in tn,
afternoon Judge Stevens made rul
ing setting aside the objection filed
by Mr.. Logan and confirming and ap
proving the report of the referee. The
motion of the defendants, represented
by Attorney Wheeler. to have the re.
ceiver dismissed. the court said he
would take under advIsement until
Saturday morning at ten O'Clock In
order to allow certain motions to be
prepared regarding fees of the re-
ceiyer. However. Judge Stevens in
dicated yesterday afternoon that the
receiver would be formally dismiss
ed on Saturday morning.
Receiver Sullivan holds 5000 or
more in trust and under the courts
order this money will have to be paid
back to the stockholders if they com.
ply with the law by recognizing and
appointing officers as if nothing had
ever happened to stop the operation
Of the bank. long since defunct.
1t is an interesting case, one thai
has attracted attention in this see
tion for years. owing to many people
directly Interested, one way or an.
other in the banks failure and ow.
ing to the many sided legal fight
that has been on through the years
in the matter.
There will be n Democratic rally
] at Whitewater on Friday night OF