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BANKRUPT BANKS AT WAR. A Legal Fight That Has No Precedent in Law Records. NEW YORK, June 14.-The peculiar case of the defunct Brooklyn Atlantic State Bank against, the receiver of the Manhattan Bank, of this city, was begun before Referee Cole Saturday. Mr. George I. Seney was President of the Manhattan Bank and chief stockholder and leading director of the Atlantic State Bank. When the latter institution collapsed it was a creditor to the Manhattan in the sum of $200,000. This amount the receiver of the Manhattan tried to colleot, but he was met by litigation, in which the Brooklyn bank sought to make an offset. Mr. Seney Invested about $180,000 of the Atlantic State in Ohio Central, Michigan and other railroad stocks. The market suddenly "fell upon" these stocks and nothing has ever been realized from them. Brooklyn's bank avers that Mr. Seney made the investment as the representative of the Manhattan. The receiver of the latter claims that the stocks were bought solely in the interest of the Atlantic State, Mr. Seney representing that institution through himself as its largest stockholder and virtual controlling director. The unfinished testimony taken was for the purpose of establishing pro and con the intereste of the contending parties. It is not believed that the matter will be submitted by the referee for weeks yet.