The Leon reporter. (Leon, Iowa) 1887-1930, 1908-07-09
N. W. A. CLAIM THROWN OUT.

Comptroller Reverses Situation in
Modern Woodmen Claim
Case not Ended.
The law firm of Stuart, Stuart &
Stuart, who have had charge of the Of
forts of tho depositors of the First Ma
tional Bank to throw oat the $35OOOO
claim of the Modern Woodmen of Amer
lea, through their alleged deposit with
Cashier Croker, have succeeded in get
ting ruling from the Comptroller of
the Currency that will put the Modern
Woodmen, instead of the depositors, on
the offensive in the case. The Messrs.
Stuart claimed to the Comptroller that
the admission of the Woodmen claim as
= bona fids deposit in the bank, without
positors to show that it was not bona
tors, 50 the Comptroller finally consent
bond sufficient to cover the costs in the
funds of the bank from further expense
to reverse his first ruling in the matter,
and throw out the Woodmen claim, thus
1OESluH OhO OuEuOu Vi pEOOl vi Uuo
Woodmen, instead of on the depositors.
the same as before, but the Woodmen
will now be the plaintiff, and the depos-
itors the defendant, which is an advan-
tage for tho depositors. The present
case filed in the district court to throw
out the Woodmen claim will now be
dropped, and the Woodmen will probab-
ly bring their case in the federal court.
But they will not be ready for trial for
some time yet. Technically, the Wood
men claim is now thrown out of the
claims of the bank, but actually, the
matter stands just as it did before, ex-
cept that the two parties in the suit
have changed positions, for it will have
to be fought out in court anyway, and
probably carried to the highest court.
The district court case was according
ly dismissed yesterday, and the follow
ing depositors have already signed the
guarantee to pay the costs of the de-
Tense in case the Woodmen bring suit to
establish their claim, which they I'M
doubtedly Willie. ]. Stewart, G. w.
Larimer, L. Rex Bennett, N. G.. Lutz,
Chas. Mauk, L. H. Busselle, George r.
Carpenter, f. P. Wright, John v. Bon
net, Jos. A. Brown, George e. Deming,
B. R. VanDyke, Chandler Bros, G. f.
Noble, H. j. Steinbach.
The delay over the settlement of the
big claim will not delay the payment of
a dividend from the bank, however.
Receiver Jamison tells us that he will
ask permission to pay dividend as soon
as the preferred claim cases are ruled
upon by Federal Judge Smith McPher-
son. Judge Mcpherson will be in Char
iton next Tuesday, July 18th, to hold fed
eral court, to hear all the preferred
claim cases in bulk. The term will be
known as part of the Creston term, it
being held here only for convenience, as
all the evidence is here. 1t will be held
in the district court room, beginning at
10 o'clock on Tuesday morning. There
will be no jury, the cases all being in
equity.
There are eight or ten of the prefer
red claim cases, the principal one being
the deposit of the county in the First
National Bank. Atty. ]. A. Mitchell
believes that the county case will be
appealed to the Circuit Court of Appeals,
no matter which way Judge Mcpherson
decides it, so that it will not be settled
at once. But there will probably be no
appeal from any Of the other cases, and
Receiver Jamison will try to arrange
for the payment of the first dividend to
the depositors as soon as Judge Nc
Pherson decides the cases, which ought
to be within month from now.
There is little over 100000 on hand
for the depositors, and with the Wood
men claim out of the way for the pres
ent, good dividend ought to be avail
able for the bona fide depositors.
Receiver Jamison has filed suit
against the city of Charlton for a judy
ment for the unpaid city warrants
which were cashed by the First Nation
al Bank for several years prior to the
bank failure, amounting to $17,S22.75
and interest, or S19,512.91 in all. up to
Sept. 1, 1908. These will be S5,72S.S5 of
an Offset to deduct from this amount,
there being that much of the county de-
posit due the city, in tax collections
which Treasurer Wright had made.
That will leave $13,7S4.08 still due the
bank from the city, on which the city
will probably confess judgment Char
iton Herald.