Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-08-20
BANKS vs.. D[POS|1ORS
Institutions on Which Stand
ring Forged Notes Seek
Preference
DEPos,roRs MAY LOSE ALL
If Victmized Banks Win Contention
Their Claims Will Absorb All AS
sets-Otherwise Depositors Will Re-
ceive About so Per Cent-Much
Forged Paper Outstanding.
ecial to Times-Republican.

Special to Times Republlcan.
Garner Aug. 20.-If it can be shown
that money paid to the bank of Cor
with by the Peoples Savings bank OF
St Benedict for alleged forged paper
forged by Standring, the abscondlng
cashier, of the Corwith bank was in
trust and was not an actual legal
transaction in which the st. Benedict
bank received value, the court may de-
eide that the claim of the bank for
some $4,000 against the receiver of the
Bank of Corwith, is preference claim
and will be paid in full.
That is the question upon which
hinges the outcome of the claims
against the wrecked institution of Cor
with against which a score of banks
of Iowa are battling for their money
at Garner this week. The st. Benedict
people claim that the notes, etc, they
received from Standring were forger-
les, as has been shown; that no legal
transaction occurred and for that rea-
son the money they turned over to
Standring was money which was act
ually held in trust by the bank and
can not be reckoned as part of the as
sets of the institution If the question
which the st. Benedict attorneys are
trying to solve to the satisfaction of
Judge Clark is decided in their favor it
"a Lott Of no
all other institutions who find them
selves in the same situation as the st.
Benedict bank, whose claims will at
once come in as preferred claims and
in short time the assets of the bank,
which amount to $4,000 will be wiped
out entirely, leaving other creditors
holding the sack. The case has been
going on for some days and because
of it's Importance Judge Clark is COW
ering every detail carefully. Days and
days of work yet remain before the
end in the untangling process.
Forged Paper Numerous.
The amount of forged paper which
is held by banks, ETC., which was re-
ceived in a similar manner to that of
the st. Benedict bank, amounts to $780,
900. With the expenses of the receiver
added to that of these claims nothing
would be left. w. c. OellSe is the re-
ceiver of the bank. The trial of the
cases at Garner has developed that the
st. Benedict bank claims $4,000. Be
cause this money was Wrongfully re-
ceived it could not actually mingle
with the other moneys of the bank is
shown by the attorneys for the claim
ants.
According to the statement of the
receiver, Mr.. Oelke, he has received
time and sight deposit claims against
the bank of $11S,000.
He has collected from the Surety
company on Standings bond, $10,-
900; has received from the sale
of bank fixtures, etc., $4,000; has
collected on notes, ETC., $4,000; still
holds property, etc, belonging to the
bank of about $4,000; making a to-
tai holding of $4,000.
With the claims of forged paper
holders amounting to $4,000 plus
the sight and time deposit claims of
Sis, 900, makes a total claim against
the bank of $18S00O. Against this is
$4,000, leaving deficit of $4,000.
Would Pay About Half.
On this basis if all the claims go
in on an equal footing the claimants
would realize about fifty cents on the
dollar on their claims. Whereas if
the banks were allowed their claims
as preferred little would be left for
the ordinary claimant. Against the
claims of the bank Of st. Benedict,
whose case came first, is the com
bined opposition of the receiver of
the bank and as well the other claim
ants. They realize that if ST. Benedict
claims win, their claims will be worth
so much less. Over twenty attorneys
are interested in the case.