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HIGH COURT UPHOLDS BANK Suit on Preferred Claim is Decided in Favor of Ordinary Depositors An important decision and one of special interest to the people of this community has just been rendered by the state supreme court in the case of Ryer Grain Co. vs. H. C. Johnson, supervisor of banking, in favor of the depositors of the American Security bank. Collection of a draft for $3700 had been made by the local bank and remitted by cashier's check about nine days before the bank closed its doors. The cashier's check was deposited by the forwarding bank with the Federal Reserve bank and before reaching the American Security bank the state bank department had closed the bank. The Ryer Grain Co. brot suit to collect the entire amount as a perference claim. The case was decided by Judge Truax against the Ryer Grain Co. It was appealed to the supreme court and heard before department No. 1 last October. This department failed to reach a decision and the case was re-assigned to be heard before the entire supreme court sitting en banc on January 25. Attorney Cosgrove and Terhune of Seattle represented the Ryer Grain Co. and C. L. Holcomb of Kennewick represented the state department of banking. Now that this case is out of the way, it releases considerable funds of the bank which were tied up pending this decision. The release of the preferred claim also adds to the available funds of the bank and a dividend is expected within the next thirty days to the depositors. To date one dividend of forty per cent has been paid. Several important collections have been made since the last dividend made a year or more ago.
