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In an Effort to Straighten Out the Affairs of Smithfield Bank. NEW MARTINSVILLE, July 24One of the first suits to be filed for the Smithfield bank was filed in the circuit court by Cecil B. Highland, reciver of the bank, against H. L. Smith, of Smithfield, and at one time one of the largest and wealthlest independent oil operators in the county. The bill of complaint cites that Smith is indebted to the bank in the sum of $23,973.95, less $1,505.30, as endorser and guarantor ond principal for other debts and for which he is lable to the extent of $5,808.75, as evidenced by promissory notes. To identify and secure the Bank of Smithfield, which was forced to close its doors some time ago, Smith and his wife on September 12, 1907, made executed and delivered to the defendant, William Carlin, prsident of the bank, a certain deed of conveyance for the consideration of $1, and other valuable considerations to ten different tracts or parcels of land. The plaintiff would show that the said deed while absolute in form on its face, was in fact executed and delivered by Smith to Carlin as a mortgage for the purpose of securing and indemnifying the Bank of Smithfield against any loss that it might sustain by reason of the money loaned to Smith. It is cited in the deed that the property is conveyed for the sole and only purpose of securing the Bank of Smithfield in the payment of $10,500. Carlin was to permit Smith to remain in possession of the real estate and to collect the rents derived from agricultural and other leases thereon, and apply said rent to the discharge of said note and interest. Carlin was to sell all the oil produced from said real estate and apply said sales of oil to the payment of the notes. The land is now under lease to the South Penn Oil Company. and the oil has been run into the lines of the Eureka Pipe Line Company. Receiver Highland petitions that Henry L. Smith. the Bank of Smithfield, William Carlin, the South Penn Oil Company and the Eureka Pipe Line Company be inhibited, restrained and enjoined from delivering any of the royalty oil produced to H. L. Smith or William Carlin; that a receiver be appointed to take, receive and sell said oil and to hold same subject to the order of the court. The plaintiff understands that the land has never been sold or the profits from the sale of the oil applied to the discharge of the notes. Receiver Highland prays that a decree be granted against Smith for the amount of the indebtedness to the bank, that the mortgage be foreclosed and that the land be sold, or as much of it as will satisfy the claim of the bank. The tracts of land under mortgage are very valuable and have a number of producing wells upon them. Every effort is being made by Receiver Highland to straighten out the affairs of the closed institution and a number of other suits ar contemplated if the claims are not satisfied in the near future. It will be weeks before the bank will open its doors
