Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-08-28
FORGERY QUESTION UP
Court Wrestling With One
Point of Corwith Bank
Wrecking
ARGUMENTS HEARD SEPT. :
Court Completes Taking Of Testimony
in 3o7 Cases Brought by Claimants
-Haswell, Relative Of standrins, Who
Wrecked the Bank, Has Claim for
s2o,ooo-TotaI Claims Over $1,000 900.
special to Time.-Republican.

Speclal 10 llmes-RepuDllcan.
Garner, Aug. 2S.-An unravelling OF
the intricate tangle of the affairs of the
defunct Bank of Corwith may soon be
expected. All of the testimony in the
307 cases connected with this affair
adjourned the session of the district
court in Hancock county until Sept. 2.
when he will hear arguments from
many attorneys on the forgery ques-
ton, the most important in the entire
affair. Attorneys from many cities
will be here to offer arguments and
they will occupy at least two days of
the time of the court. After the argu
ments are heard, the cases will be
finally submitted and the court will
take them under advisement.
The Forgery Question.
]. H. Standring, the man who
wrecked the defunct Bank of Corwith,
forged notes which he sold to various
banks and individuals. In all these
forged notes amount to approximately
$4,000. They are held by the Grundy
County National bank, George M. Rea
of Dysart r. B. Raymond, G. w. Ma
son, the Peoples Savings bank of ST
Benedict. Ruth Dysart of Dysart, the
Des Moines Savings bank, the Garna-
villo Savings bank, and j. L. Haswell,
whose home is in New York.
Haswell is related to Standring and
holds one Of the largest claims against
the bank a sum of about 100000. These
creditors of the Corwith bank claim
that their claims are preferred above
those of the depositors, because they
say, the money which they paid Stand
ring for these forged notes, never went
into the funds of the bank but was
directly appropriated by Standring for
his own use. That therefore Standring
held the funds in trust, that he was a
trustee for those funds and that their
claim for the funds as trust funds
placed them in rank above the deposit
tors. They argue that Standring in
wrongfully using the funds of the bank
made those funds a trust fund. The
counter claim is that all these claims
SQOulQ DS CldSSGu Will lIlOSt VI ShS
general creditors and after the claims
Of the depositors. The fact that Stand
ring appropriated the above mentioned
funds without ever turning them into
the funds Of the bank is something
that they claim must be proven and
unless it is Enthusiastically proven that
the funds were trust funds in that
sense, it is not right for those claims
to be ranked above the claims of de-
positors. All of the final arguments
will be on this question. The ques-
ton as to whether Standring used the
$4,000 for his own ends and thus made
it trust fund or whether he turned
that amount into the funds Of the
bank is the one which will have to be
decided before the final ruling on the
case can be made.
Tho Funds Of the Bank.
The total claims against the defunct
bank are over 100000. If all should
share on an equal basis the bank
would pay about 40 cents on the dol
lar. Should the depositors have their
claims preferred the general creditors
would get only about 20 or 25 cents
on the dollar. The claims of the depos-
itors amount to s11s,00O The claims
of the banks and individuals which