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BANK DEPOSITORS DEFUNCT
Settles Suit Mackey Thompson First National Bank of The Wells The Nationof Against Company for Surety following article, under The headline appeared Wells Mirror of Wells, yesterday's and will be of interest to many of the readers of the Tribune:
(By Mackey Thompson) This suit was instituted case of the First National which receiver Bank of Wells against the National Surety Company to recover under indemnifying the bank bonds loss might sustain his against any certain of some of the through of the bank insured. The officers settled out of court by the suit was paying the present Surety company who is the trust's third receiver, phone the of $21,250. This receiver, sum of claim the full payment any have against the Surety trust may for the acts sued upon mean company action the trust and includes any bring the same acts un Judge might on der the bond of the first receiver, which bond written with the gued said National Surety Company. The First National Bank of Wells brief closed September, 1923. The Sure claimed the bank's con- fore company the Minnesota Land make nection Credit Company and acts leged in the were known national bank examiner and reported and therefore had the of the alleged acts so the distice reported later of the alleged covery acts was outside of the time the bond. The end tion stipulated claimed those who Surety company had charge of the bank after day, closed had access to all books of account and ords and should have known of these causes us action. The receiver disclaimed any act of negligence on His defense, under his part. stand him correctly, that on two duct separate and distinct occasions the department of justice had men our the First National Bank of amining Wells and did not report, that aware, any dishonest act and if they did not find any for criminal action how was he the to find for civil action pected any and with many other pressing duties he could not be expected the thresh matters he believed had been brought To The Surety company in its answer also set laches as a defense. the up This word means unreasonable de Certainly there is no doubt of lay. about delay. This discovery reported in the complaint of the trust two after the made over years bank closed. But has to be unreasonable delay to be laches. The trust had its case well prepared and would have this proposition given the Surety company good battle. Some of the items of the trust's complaint covery those where the notes or per were given for so-called volun assessments. The Surety com tary claimed was not participat pany in by all shareholders and ther the amounts function were the stock held one might say was more of donation, or say, voluntary contribution. The question then arises, was there any liability placed upon the donor in the conduct of the property donatof how could you say the Again, assets of the bank were lessened the conduct of the donor faulty gift? The Surety company claimed the bank was ahead by the contribution yielded. They to also claimed that several of al leged the assets of bank any as they accrued to the benefit of the The receiver read brief present outline of the matter representa tives of the depositors' committee of the First National Bank Wells and the things ered in his statement he said had never met job that required the technique of so many human activities as those required of receiver closed national bank village or small town in an district like ours. The agricultural first this trust in tion had to operate factory in the instance of canning plant. ceiver has to be skilled in chattel He has to know about mortgages. contagious abortion and tuberculo sis in cattle. Versed in drainage and tiling. What conditions allow preferred claim and when does an from Mr. offset obtain. Quoting remarks, said, Thompson's expect us to bat 1,000 per Babe Ruth can't do it and Well, do The rest of the receivcan't for On can speak 1923, there were not September receivers of many experienced tional banks. You don't have it in to either of us that one of the first things, if not the very first thing, in taking bank to examine the sure just closed, bonds of the officers for possible was fortunate enough recovery. make such recovery for the Wells National Bank, but Na words the refused by the office of the comptroller of the currency. They and this flat suggested refused by the Then $17,500 concurred the attorneys of both sides, but flatly refused this. receiver's is no has to make portant decisions and he plays lonely role. There was Thursday afternoon. had to have Good hart, Madland and Ringoen here Saturday to ready for case the following Thursday. We had all that research and positions could before well prepared. No matter the trial court held way would have been appealed. The cost and delay obvious and old Father Time was plugging along in prosiac way and the sun setting the west. Well, derson got his principals in New York on long distance and got the office on the and settled for $21,250 and, as they say, that's that. This epistle reminds me of judge's charge to the jury and that way. only wish lucid as those written Haycraft and Judge Norman Peterson. afraid have my case, which rules. You have this against outline of the matter and your own beyou and to verdict. good for What your unbiased opinion. However, before adjourn to and take your first jury room ballot assume refused settle and stood trial January 1930, and the curtain falls the of the month elapses before you just the setting the same and bring you message, namely, we lost case and the subject before shall appeal with all the attending expense, work and Would have blamed the you findings of the court upon the of the trial and would you have said if had understood you weakness you would have tled? wish you to sleep on this and have meeting and then letter to the comptroller of stating what think currency you about the settlement of Now, not what do think about you conduct of the trust by the othreceivers, not what you think the bank examiners should have done when the bank closed or what department justice should have done about the miscarriage justice, but what should have done on that Thursday afternoon the sun was setting in the
Lea against the American Company in which this inSurety surance company is by the Minneapolis firm The torneys, Messers. Fowler, Carlson, Ferber Johnson. It comes before the circuit court of appeals on an appeal from order sustaining demurrer and expect to Janet heard Kansas City during the March term. The Albert Lea Building Loan Association have Gendler, bond, believe, the sum Lenz, $75,000.00 under which it would son, be very advantageous to the assomade of Ardis recovery the had deposited with the Albert Lea State Bank at the time that bank closed. These surance companies use all the vices and artifices known to the genuity of the smartest brains the country and use all the intricacies, devious ways and pitfalls of our present rethods of litigation Robert to escape liability. You can lieve me not. It behooves some Harold attorney on behalf the Albert Building Loan Association be alert and of single purpose, by son, which mean, to be out first, last and always for the good of the Nelson, Lea Building Loan Association. Select an attorney that has affiliations that one no past or present would tend to temper the vigor of his prosecution. might be for all of the old officers and direc tors the Loan Association hold ing office the time the Albert State Bank closed, to resign. That of course is the shareholders of the Albert Lea Building Loan have wondered was possible make for the Albert Lea Building Loan Association of the remittance of made the Albert Lea ble, Company from the State Foundry Highway Commission by their Grobel, voucher No. C-11544 dated August Houge, state auditor's warrant No. mailed to payees on August Eileen 1928, covering negotiation No. state project No. understand able attorney resigned rector the Albert Lea Building Loan because this draft, the proceeds thereof, was to the Albert Lea Build paid over Loan Association as mort ing certain mortgage where gagee the Albert Foundry Company mortgagor and the property covered by the mortgage volved in the State Highway ject referred to above. The important thing at this time prompt, vigorous and loyal tion. The present men the helm have all these qualities and my of writing these few only purpose words to bring home to all the importance of the situation and to preclude the mistakes made in the Wells trust. Mary MACKEY let
