Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-08-11
SEYMOUR BANK
CASES SETTLED
ATTORNEYS COME TO AN AGREE
MENT - DEPosIToRs GET
20 PER CENT.

Corydon, AuSSt Zine FAMOUS
Farmers & Drovers bank cases of
Seymour was settled this week II
Judge Towner's court.
The suits in which the stockholders
the Evans and owens brought suit
against J. c. Phillips, ]. G. Calhoun
and O. A. Cover for stock, was set
tied by the parties sued paying
large amount of the claim.
| The stockholders J i'll pay the $780,
| 900 assessment on the canitol stock and
| $4,000 on unpaid stock. This includes
all but Leroy Ware at one time con-
nected with the bank. who is not now
i in a position to pay. He owned about
| 81 900 worth of stock. There will be
about 10 per cent left for the deposit
tors after all expenses have been paid.
| The court thought that was the best
| that could be done for all parties con-
| cerned and so ruled. The following is
| his decree:
The Court: 1t is proposed in this
settlement that the following cases
which are now pending and which in
volve claims against individuals and
estates, are to be settled, towit
No. 1871, entitled, z. 3. Fry. Re-
ceiver, VS.. o. A. Cover. ct al; No. 1879
entitled, F. B. Fry, receiver, VS.. w. l..
Evans, administrator of the estate of
Aaron Evans deceased. ct al: and
No. 7464. which is entitled F. B. Fry,
receiver, VS. j. C. Phillips, ct al
1t is proposed by this settlement,
as the court understands, to end a
large amount of uncertain and vexa-
tious litigation. Suits have been
brought against the stockholders OF
the bank by the receiver for their 100
per cent statutory liability.
BY this settlement nearly the en-
tire $S00OO the full amount claimed,
will be added to the assets of the
bank.
Suits have also been brought
against the stockholders for the S40,-
600 Of unpaid stock.
BY this settlement nearly the en-
tire amount, and the full amour.
claimed will be added to the assets
Of the bank
On these two classes of cases every
dollar that it would be possible to OBJ
tain at the end Of litigation, will be
secured by this settlement.
Suits have also been brought by the
receiver against the directors for neg
ligence.
BY these settlements these suits arc
to be dismissed An it is only fair
!, to say that this class Of claims are
very uncertain, both as to the law
and as to the facts.
BY this settlement al the dividends
/. received by these stockholders are
itors against the bank. By this ar
rangement these claims are decreased
about 1000.
; BY this settlement and the payments
! that will be made in accordance there
with the most important affairs Of
this Seymour bank failure can be
wound up and brought to a CLOSE
Within short time an amount
which will bring approximately 70
per cent to the depositors will be
paid in and at once distributed
5 Some small matters will probably re-
main unsettled but the large part ol
! the expense can be stopped. The re-
ceivers compensation can be largely
I reduced, the lawyers, the expert ac-
countants, and clerks mostly dis
charged.
1t is certainly best for all that il
possible this matter should be speed
lily closed. 1t has already occasione:
| much litigation. To continue Ibis
: litigation if reasonable settlement
) can be secured. will be most unwise
Litigation is war 1t should alwdy S
be avoided if possible. In the further
: prosecution of these cases the costs
. would be tremendous. To try every
individual case necessary. that Is, !!
we would try all the cases that might
be tried that is within the power o.
the court to try, would take mor5
than every day of every term fol
more than a year of the scheduled
terms for this county, to the exclusion
of every other business, and woulc
; cost the county thousands of dollars
At the end OF the litigation only tins
court costs in the particular case:
| could be taxed to the defeated liti
CANT, while all the expenses Of con-
: tinuing the receivership, paying th'
/ bank experts, accountants, clerks
, hoy f0 horne h1y Ia.
positors and would lessen their fina
) dividends
: But that would not be all; all .
; these cases can be and most Of THU
doubtless would be appealed to tn
! supreme court. No one could tel
1 how long they might stay there, AMI
some might be reversed and sent bacl
, and the dreary round again com
i menced. The expenses Of such litiga
] ton would certainly be lar"e an
K might be tremendous. Lawyers fee
will have to be paid at every step o
:, the proceedings, and other expense
a incidents to such important litigation
!. If to these delays and expense
are added the uncertainty of the It'll
a CATION, and the fact that in the end,
q the receiver was so fortunate as t
seceed in every case, no more than 10
1 per cent could be secured; and tina
:, out of this, these costs and expense
9 would have to be paid, 1t seems eVl
, dent to the court that a present set
G tlement of approximately 70 per cen
: will be best for every one.
II No one sympathizes more than th
court with the poor people who hav
suffered from the delay already eS
perienced, and who ought not to b
compelled to accept less than on
!, hundred cents on the dollar on the
: deposits But the court cannot chang
existing circumstances, nor chang
existing laws, and must act on til
matter with a purpose to do the yer
k best that it can under the condition
"a shown; and with that purpose in vieH
~ it has no hesitancy in saying that tn
. settlement ought to be made, and
O. ordering an approval of it. Althoug
le there may be those who will not ar
d prove of it at the present. am qui
e. sure the eventual judgment will be a
n approval of such action. In any eve1
# the court must follow the conviction
what is right and what is best, ar
in SO doing it has no doubt that it
T. its duty to approve of this settlement
Or and the settlement of these cases W.
)e be approved accordingly.