Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-04-23
MANIPULATION IS
CLAIMED IN CASE
Allegations of Misconduct Made
in Suit Growing Out of 1
Bank Transactions
NOTE MAKERS ANSWER CLAIMS
It Is Alleged That Notes to Dr.. George
Click Were Given Only as Security
for His Bank Debt ~ II Charges CoI-'
lateral He Put Up Was Sold, But
81.
Notes Were Not Taken Up.

The answer Of the defendants
against whom suit was brought by
Frank Woodbury., as trustee of the es-
tate of his father Fred j. Woodbury., OF
Pasadena, to collect on notes taken
over by the Woodbury. estate In the
settlement of its interests in the First
National bank, when its controlling in
terest was sold last summer, was filed
this morning.
The answer covers sixty-five type
written pages and sets forth in detail
the contentious Of the defendants why
they are not liable on the notes which
were held by the bank and are now the
property of the Woodbury. estate.
The answers are those of Charles ].
Lander and Charles Click, but in each
instance the contention OF one is the
answer of the other.
Charges Much Manipulation.
When the Woodbury. interests retired
from the First National bank it as
sumed as part settlement certain notes,
totaling $3S,55O, which had been made
by George Click, the Holland Land and
Lot Company, Mrs. Jane Click, wife of
DR.. George Click. Fred and Charles
Click, his sons, and Charles j. Lander.
ar,
these notes.
The answer charges that there was
much manipulation of the banks af-
fairs, In the past, some Of which were
of a shady character, and for the pur-
pose Of defeating the intention of the
banking laws and of evading the bank
examiner. While the giving Of the
notes to DR.. George Click by the de-
PENDANTS is admitted, 1t is declared that
the purpose for which these notes were
given was to secure DR.. Clicks loan,
he being the president of the bank at
that time, and much indebted to It.
DR.. Click, to secure the makers of the
notes, assigned to the bank a large
quantity of stock in the National Lin
seed Oil Company, also stock Of the
bank and a small promissory note.
The contention is made that later the
bank stock, which was assigned by
Click to the bank was released back
to him, without the knowledge OF Lam
der, and also that the other collateral.
put up by Click, was sold by the bank
without Lander knowing it.
Notes Clicks Surety.
At the time of the beginning OF these
transactions Dr. George Click was
president, altho Fred j. Woodbury. and
j. p. Woodbury. owned a controlling
interest in the bank. It is alleged that
about May /, 1891, the bank claimed
Click owed it $4,000, and that this
amount was largely in excess of the
amount the bank was privileged to loan
him under the banking laws. In 1898.
It is charged that this debt had grown
to $500, secured by the following
notes: George Click, $3.50; Holland
Land and Lot Company, $4,000: Mrs.
Jane Click, $500; Fired Click, $7.40O;
Charles Click $4,000, and Charles Lam
der, $4,000 All of these notes were
signed by George Click as endorser
or co-maker.
Click Puts Up Collateral.
To secure the makers Of these notes
and the bank, DR.. George Click de-
posted with the bank S67 shares OF
stock of the National Linseed Oil Com
pany, of par value Of $4,000, and that
he assigned to the bank 100 shares OF
its stock which he held, worth &c.
900, and promissory note for $500.
The contract entered into by Click. j.
P. and F. J. Woodbury., covering this
negotiation, provided that when the oil
stock was sold the proceeds were to
be applied on Clicks debt by paying
off the notes which were its security.
Stock Sold, But Note Held.
Lander's answer declares that early
in 1894 the bank released to Click ten
shares Of the stock that had been as
signed to it as security for the loan
and notes, and that by doing so the
agreement covering the notes and col
lateral was broken and that he became
no longer liable under it. 1t also says
that between 1894 and 1897 the bank
disposed of the remaining bank stock
Click had deposited for $4,000, its rea-
sonable value. 1t is charged this was
made without the knowledge Of Lam
der and that the proceeds were wrong
fully applied and not used to cancel
the Lander and the other surety notes.
This stock the answer says, was sold
to F. ]. Woodbury. and Frank Wood
bury, who purchased it, knowing it had
been deposited as collateral.
Lot Company a Pretense.
Among the surety notes was one
from the Holland Land and Lot Com
pany for $4,000. Lander's answer says
this corporation was a pretense and
that in fact it was owned by the
bank, and that Its note in no way con-
stituted or represented any debt against
Click, but that the bank might pay
larger dividends to its stockholders.
Cross Bill in Equity.
The answers Of both Charles j. Lam
der and Charles Click include cross
bills in equity, by wit hey seek to
have the Woodbury. late enjoined
from selling or negotiating the notes,
and that a decree be issued directing
the plaintiff to surrender and deliver
the notes that they may be cancelled.
II they cannot be found decree voiding
them or judgment for their value is
asked for.
Dsmurrers overrued.
Judge J. NJ Parker, in the district