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Directors of Failed Farmers Bank Petersburg Are Made the Defendants Suit was instituted in the district court for Boone county last Friday volving more than one hundred thousand dollars. Brownell, receiver for the Farmers State Bank of Petersburg the plaintiff and Barak, Edwin Evans, Henry Arp, Chas. Preusser, Martin Thorberg, B. Koenig, Juelson and Wm. Koch are the defendants. E. Perry of coln and Vail of Albion are the attorneys for the plaintiff, who actin his official capacity as bank ceiver. Prior to October 26, 1921, the defendants named in this case the principal owners, directors and chief managing officers of the Farmers State Bank of Petersburg. According to the petition filed by the plaintiff it was found that the bank held certain notes aggregating $160,banking partment considered slow and doubtful paper. The petition further sets forth that the directors of the bank, desiring to retain control of the institution, to repair the capital and maintain the bank going concern, tered an agreement with the state banking department wherein they guaranteed the notes held in question by the department. Since that agreement was entered into about $60,000 has been realized on the notes, leaving uncollected sum trifle in excess of $100,000. The bank has been in the hands of the receiver for some time and the state purposes to hold the former directors to their pledge or guarantee. The case one of the most important civil action ever instituted in the county, involving as it does SO large sum of money.
