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MYERS STARTS SUIT TO RECOVER ASSETS IN LOCAL BANK Receiver City Was Alleges Made Preferred Creditor By Illegal Moves The city of West Palm Beach was illegally made preferred creditor of the Palm Beach Bank and Trust Company, Orel Myers, as receiver of the bank, alleged Wednesday in suit against the city and F. A. Gutelius, receiver of the Farmers Bank, to recover certain Mr. Myers charged that an official the Palm Beach Bank without authority transferred of $243,the Farmers Bank as securIty city funds the Palm Beach Bank less than 10 days before the latter closed June 1926. Receiver Myers he understands Mr. Gutelius, receiver the Farmers Bank which closed several months after the Palm Beach bank, has collected $80,000 be applied the collateral, which money has been turned and delivered to the city. was claimed neither the Farmers bank celver nor the has any right, title interest the security the monies the security because the transfer of the securities was and The court was requested to require Receiver Gutelius and the city statements concerning the monies collected on the collateral and the monies received together report on the securities. Receiver Myers further requested that all monies collected be impressed with trust and declared to be the property money Receiver Myers also return of all notes and money collected upon them. It was alleged that when the Palm Beach bank was open the city posited several hundred thousand dollars which remained on deposit with the bank various accounts subject check. Less than 10 days before the bank closed when the vice presidents and managing officers knew the was insolvent, one the bank's vice presidents, knowing the institution's deposited certain of its assets with the Farmers bank, was said. The which were notes amounting to were deposited with the Farmers bank secure the city of West Palm Beach against in case of failure of the bank for sums which the city previously had deposited with the bank, was Mr. Myers that the confor the placing of the notes with the Farmers was not present but past one, solely for the past indebtedness which the time the bank was unable pay and secure amounts which had been deposited without regard to expectation of receiving security.