Article Text
DIRECTORS OF 'BUSTED' BANK ARE BEING HELD Worthington Citizens National Bank Receiver Charges Excessive Loans Totaling About $75,000. Mankato, Jan. 21-There was no surplus in the Citizens National bank of Worthington for some months before it closed, Ferdinand Ringoen former receiver of the bank testified at the opening of the suit in federal court yesterday afiainst five ex-directors are alleged to have made excessive loans totalling about $75,000 ir violation of the national banking act. The testimony of Ringoen who is now receiver of a St. James bank, relative to the alleged impairment of the surplus of the Citizens Na tional was opposed by A. R. English one of counsel for the defense, and it was indicated that this question was one of the main points over which the legal battle would be Defendants areal E. Godfrey, A. B. Williams, John H. Albinson, T. A. Fallgatter and John S. Tolverson A number of loans are complained against Harry Hardman, present receiver of the Worthing ton bank. some of them being to bank officers. Ringoen was appointed receiver of the bank a few days after it closed on June 14, 1924 and took charge the same month. he testified. E. H. Nicholas of Fairmont one of plaintiff counsel began to examine him relative to the condition of the surplus at various times from 1921 to the date of closing apparently the times when loans alleged to be excessive were made He said the surplus February 14, 1921 was $20,000 but when Nicholas asked him a question about its impairment English strenuously objected. Judge William A. Cant. overruled the defense attorney's objection that Ringoen was incompetent to testify on the matter and held that the plaintiff might proceed provided he showing was made from the books of the banks. According to Ringoen's testimony the $20,000 surplus was impaired to varying extents and a few months before it closed charges were "away above" it. Fresh objections by English occurred when Nicholas began to question the former receiver about the Worthington Rendering company a number of whose notes were in the bank when Ringoen took it over Defendant Albinson and D. W Phillips. cashier of the Citizens Na tional were indicated as among the incorporators of this company in articles which were introduced in evidence. The books of the Worth ingion Rendering company were the bank when be took charge, Ringoen stated. English objected to a question about the Rendering company's notes and demanded that the original notes be produced. This brought out that a partial settlement of the indebtedness had been made. Nich olas questioned the witness about the amount of the whole indebtedness, which led to a statement by English of what was taken to be one of the positions of the defense. He held in effect. that if the directors re liable at all they were liable for entire loans, and not only the part claimed to be He declared that liquidation of the notes by the receiver. put it beyond the directors power to save thems Ives from loss. Nicholas countered with the statement that "directors have no right to liquidate the bank that is the receiver's job." Testimony of Ringoen indicated that Godfrey had been director in the bank since 1921: Williams since 1920; Albinson since 1916. and Tolversen since the beginning of 1924, while Williams served on two occasions from 1919 to 1920 and 1923.to Huge Optical Glass Cast Washington, Jan. (AP) Triumph finally has crowned a threeyear effort of the bureau of standards to east a foot disc of optical glass for one of the largest reflecting astronomical telescopes ever undertaken.
