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Starts Suit in Court Against Officials of Merchants National to Recover Funds (By Associated Press) DES MOINES, Oct. of permitting the issuance of loans that exceeded the legal limit and contributing to the dissipation of assets of the Merchants National bank of Grinnell, which was closed November 1924, have been filed in the United States district here by D. Thomas of Grinnell, receiver for the bank. Judgments totaling more than $100,000 are sought in the case which was brought, the petition stated, in an effort to windup the affairs of the institution. Names Officers George H. Hamlin, former president; Bernard Carney, former vice president; and six directors named The dirare. ectors Fred E. Spaulding. George M. Christian, G. Goodrich. Carl C. Phelps, James Shifflett and Virgil all residents of Poweshiek coun- The petition lists number of loans aNeged to have beeen illegally made. The borrowers include Stewart, Luella Stewart, Ben Stewart, Glenn Roberts, Harvey John Puls. Mary Puls, McFate, Sherman and Adelaide Ralph Sherman. Going into details cited the petition states the loans that were acceptloans to Ralph Sher ed for the and states that the and wife improperly transferred notes were Fred Reisch, and to Goodrich, Hallie C. Burd, an employe of the bank. Hard Hit in 1924 the capital The petition says the bank January stock of and unimpaired 1922, was $100,000 and points surplus was the largest loan that that one borcould be legally The loans was $20,000. exceeded that amount. listed made that "durThe charge surplus of the year the out and the bank was wiped impaired to the capital stock was by losses to the amount of $38,000
