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Loan
$251,000 Grant to Speed Funds to Depositors.
(Continued From Page 1.) of effort on Mr. Andrew's part to work out plan whereby money could be released to the banks through loans to pay dividends.
Won in Test Suit. A test suit at Sioux City, brought in the case of the First Trust and Savings bank resulted victory for Mr. Andrew. On appeal to the state supreme court, the lower court was sustained by divided opinion. In October the supreme court filed supplementary decree in which majority of the justices sanctioned Mr. Andrew's authority to obtain the loans.
Had Plans Drawn Ahead.
Assistant Attorney General Wisdom said he made arrangements with the Chicago, Ill., office of the R. in regard to the manner in which the loans were to be obtained. The procedure agreed upon was for the banking to present the assets of each closed bank to the for deteras to how much money the R. would lend on them. After the amount of the loan was determined, an approval of the loan was to be obtained from the district courts in the counties in which the banks were located.
Misunderstanding Reported. Through of the agreement, Mr. Wisdom said, the three Iowa City banks went ahead and obtained approval of loans sought in their cases from the Johnson courts, before the assets of the banks had been to the R. result of the action at Iowa City, the banks there will be some time in advance of the other three banks outside of Johnson county affected by Monday's ruling, because court action approving their loans has not yet been started, Wisdom stated
Plan Immediate Action.
The necessary approval of the courts will be sought immediately in the cases of the three banks outside of Johnson county, Mr. stated. Under the law, Mr. Wisdom said, that hearing be held before the court can approve the loans. Notice of the hearing is set by the judge, generally 10 days from the time the accordto Mr. Wisdom He estimated ing that the court procedure in the three cases would be completed that the money could reach depositors in January.
Method of Repayment.
The money obtained from the will be used by Mr. Andrew to augment money already available from liquidation of the banks' assets. Without the loans, however, the 10 per cent dividends at this time would have been impossible, was said In accordance with arrange ments with the R. Mr. Andrew will repay the corporation as fast as the assets of the different banks are liquidated The liquidation will continue under the direction of the banking superintendent rather than the C., but the corporation retain first claim on the assets until the full amount of the loans has been repaid. Deposits the six banks affected by Monday's R. grants total the Johnson County Savings bank alone hay. had deposits of $2,356,976.43.
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