3978. Phillips State Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
June 1, 1932*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
f6176fda88516441

Response Measures

None

Description

Contemporary Chicago Tribune (1932-06-22) reports 'heavy withdrawals in recent weeks' and that the Phillips State Bank and Trust Company was closed by the auditor at the request of the board on June 22, 1932. That indicates a run preceded a suspension/closure. The bank did not reopen; receivers were appointed and later court articles (Feb–Mar 1933) discuss receiverships for the closed Phillips State Bank. OCR shows variants 'Phillip' vs 'Phillips' in articles; corrected to 'Phillips' per provided bank info.

Events (3)
1. June 1, 1932* Receivership
Newspaper Excerpt
The case had been brought by the Automobile Rebuilding Company, depositor in the closed Phillips State Bank of Chicago...asked removal of Charles H. Alvers as receiver. (1933 articles discuss receiverships being declared void.) Judge Sullivan ruled...that all receivers of closed banks in Illinois holding office in violation the state constitution and their actions are void. (Feb 1933). The case had been brought by the Automobile Rebuilding company, depositor in the closed Phillips State Bank of Chicago. (Articles Feb–Mar 1933).
Source
newspapers
2. June 1, 1932* Run
Cause
Local Banks
Cause Details
Bank had assumed liabilities of the nearby Illinois State Bank (which closed owing $385,000) and recently acquired Cook County Trust; these local bank failures/assumptions appear to have contributed to heavy withdrawals.
Measures
None reported other than later closure; deposit withdrawals preceded closure.
Newspaper Excerpt
There had been heavy withdrawals in recent weeks.
Source
newspapers
3. June 22, 1932 Suspension
Cause
Local Banks
Cause Details
Closure followed heavy withdrawals in recent weeks and the bank's recent assumption of liabilities of a failed local bank and acquisition of a trust company, contributing to liquidity strain; board requested auditor to close the bank and auditor complied (state action to close).
Newspaper Excerpt
The Phillip[s] State Bank and Trust company, 7001 North Clark street, was closed by the auditor yesterday at the request of the board of directors.
Source
newspapers

Newspaper Articles (14)
1. June 22, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, June 22, 1932

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Article Text

PHILLIP STATE BANK IN ROGERS PARK IS CLOSED Two National Banks of Chicago Shut Doors. The Phillip State Bank and Trust company, 7001 North Clark street, was closed by the auditor yesterday at the request of the board of directors. The bank was capitalized at $500,000 and its surplus and un. divided profit account was carried $285,000. Its deposits at the time of closing were $2,100,000. There had been heavy withdrawals in recent weeks. Trust Company Taken Over. The bank on June 2 acquired the Cook County Trust from Moe Rosenberg, side Democrat politician, through the purchase of $200,000 of preferred stock and 10,000 shares of stock. A year in July 1931, the bank assumed the liabilities of the Illinois State bank, which closed owing $385,000. The Illinois State bank was neighboring bank and the assumption of its debts was declared by Phillip bank officials to be contribution to the of Rogers Park." C. A. Beutel was president of the Phillip bank and Barnet L. Rossett was chairman of the board. Two National Banks Closed. Two national banks were closed yes. terday. One was the Peoples Bank and Trust 1542 West 47th street. The board of directors asked A. P. Leyburn, national bank examiner, to close the doors of the bank. It had deposits of $3,007,000, capital of $1,000,000, surplus of $250, 000 and undivided profits of $110,000. The bank had deposits of $12,000,000 in June, 1930. The Standard National bank of Chi. cago, 7921 South Ashland avenue, was closed. This bank had capital of $300,000, surplus of $25,000 and deposits of $300,000.

2. July 20, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, July 20, 1932

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CASH IS READY FOR OWNERS OF CENTRAL BONDS Gilbert Keebler Lacks Bondholders' List. Bank failures and ships make for strange situations. For instance, owners bonds in the Central building. at the southwest corner of Madison street and Oak Park in Oak Park, have interest today but the Peoples National Bank and Trust which underwrote the and has been the agent for the mortgagor In paying the interest, is closed and in the hands of GILBERT naturally are wondering what to Gilbert E. Keebeler of E. F. Keebler & Co. and son of Mrs. Wilhelmine Keebler of 3300 Lake Shore drive, owner of the property which the bond yesterday notified THE TRIBUNE that cash is on hand in his office in the Otis building. 10 South La Salle street, for prompt payment of every interest coupon presented there. Lacks Bondholders' List. I'm taking this method of notify ing the bondholders because haven't any knowledge of the names or adof the of the Central building,' said Mr. Keebler. They merely have to present their at my office in the Otis building and they'll be paid." The Central owned by Mrs. Keebler. is two and stores and offices. The original bond issue was $135,000. since reduced to $109,000, bearing 6% interest. Terminal Theater. Title to the Terminal theater property at and has ben by the Sheridan corporation to William M. Richards, representing the protective No plan of reorganination has yet been upon The original bond issue for $550,000 was by H. O. Stone Co. It has since been paid down to $426,250. Interest defaulted Jan. 1, 1932. The property is improved with an shaped building ntaining a by the Ascher Brothers. It is now under to the Chi cago Fox interests. Mr. Richards. took title yesterdy, is assistant secretary to the bondholders' protective Name New Committee. The following committee has been named to service first mortgages orig inated by the Adams State bank: Henry F. Tykal, chairman; A. F. Jed licka, Norbert F. Kochka, and John been reserved for the bank who has not yet The law firm of Ring. Uhlir & Cuchna will act for the The principal loans made by the bank on and flat The date for the sale of the Roscoe at Ros coe street, has been set for Aug. 1, It was by the protective committee for the Straus Brothers In vestment company. There are 000 bonds in default on this property. new first mortgage is contemplated to care for the reorganization and other expenses. substantial amount bonds has been deposited with the Metropolitan the Aug. is announced the final date for Conveyance of the Naborhood gar age property 1509 Morse by Michael Long to the 1509 Morse Avenue Building completes the The cor poration took title for the bondholders. This was a $185,000 first mortgage bond issue underwritten by the recently closed Phillip State Bank and Trust company. It since has been reduced to $130,000. Austin L. Wyman was attorney for the bondholders. The garage accommodates 200 cars.

3. February 25, 1933 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, February 25, 1933

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Actions of All Receivers for Banks in Illinois Chicago, Feb. the Deris ruled today that all receivers of closed banks in Illinois holding office violation the state constitution and their actions are void. drastic ruling made depositor closed Phillips State Bank company of Chicago. depositor that pointment of receiver for the bank was void because section banking providing fundamental law of Illinois. The defendants, including Oscar Nelson the auditor, filed demurrer Superior Judge Sullivan overruled upheld the complain- banking act. Judge Sullivan held, improperly delegates the state auditor discretionary legislative fixing the power bond. Only the itself, the court said, can constitutionally fix terms of bond. Sullivan's Opinion. The opinion, part, read: "Without deciding whether the entire illegal attempt on the part the legislature to vest judicial officer, quite that the legislature did vest the state auditor delegation of power which is void for the season that violation of the state constitution. is quite evident that the legislature intended that the called receiver should give bond because of the following provision: the auditor determines that the bank cannot be reorganized that the same should be liquidated through receivership, he shall point and require him such bond and security he deems proper.' latter part of the statute leaves the matter wholly discretionary with the state auditor the amount bond, etc. Simprovisions other statutes have been uniformly condemned the court of Illinois being delegation power by the legislature. which alone can fix the terms of the bond. amount thereof, conditions, The attorney general, represented the state auditor in the indicated decision would appealed. Edward Barrett, state auditor. could not be reached toay and his office said unfamiliar Barrett has resignations of bank to consolidate for reasons. Barrett's New System. Adopting slogan of the positors Belong the Assets," IIII-

4. February 26, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, February 26, 1933

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BANK RECEIVERS Rules Illinois State Auditor Appointed Liquidating Officers Illegally. CHICAGO, Feb. bank appointed by the state auditor of Illinois held to be illegally in office and his declared today by Judge Denis Sullivan Superior court Cook county. The verdict affects 110 receiverships Cook county 400 in the The drastic ruling, which would plunge the liquidating scores closed banks throughout will be pealed by the attorney general. Founded on Technicality Judge Sullivan founded his opinion of the state which the state the authority name fix the amount terms their bonds. Such delelegislative the court ruled, has been unconstitutional court and invalidates the entire section the The case had been brought by the Automobile Rebuilding Company, depositor the closed Phillips State Bank Chicago. The company the validity the and asked Charles receiver. attorney the entered demurrer but ruled by Judge Sullivan and the act unconstitutional. Policy Adopted. The defunct banks is already in an uncertain and transitorial because policy undertaken Edward Barrett, has just become state auditor. Barrett has asked the resignation of bank proposing effect by consolidating receiver. principle has the supthe Illinois Bankers' Associa which backing bill before the state Legislature bring direct control of single state superintendent

5. February 26, 1933 The Springfield Daily Republican Springfield, MA
Article from The Springfield Daily Republican, February 26, 1933

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JUDGE'S DECISION THROWS ILLINOIS INTO CONFUSION Opinion All Bank Receivers Named by State Auditor Are in Office Illegally is Based oh Technicality Chicago, Feb. bank receiver appointed by the state auditor of Illinois was held to be illegally in office and his acts were declared null and void today by Judge Denis E. Sullivan in superior court of Cook county. The verdict affects 110 receiverships in Cook county and 400 in the state. The drastic ruling, which would plunge confusion the process of liquidating scores of closed banks throughout the state, will be appealed by the Technicality Basis of Opinion Judge Sullivan founded his opinion on technicality the state banking act which delegated to the state auditor the authority to name ceivers and fix the and terms of their bonds. Such delegation of legislative power, the court ruled, has been adjudged unconstitutional by the state supreme court and invalidates the entire section of the The case had brought bby the Automobile Rebuilding depositor in the closed Phillips State bank of Chicago. The company challenged the validity the statute and asked removal Charles H. Alvers as receiver. The representing the staate auditor, entered demurrer but this overruled by Judge Sullivan and the act held An official of the Illinois Bankers' association, informed the decision, said that fi the supreme court upholds Judge Sullivan court or order legislative act might be necessary to ratify the of the bank receivers taken Pollcy Causes Uncertainty The liquidation of defunct banks already in an uncertain and transitional state new policy undertaken by Edward Barrett, who has just become state auditor. Barrett has asked the resignation state bank receivers, purposing to fect economies in administration by consolidating liquidation under one receiver. This principle has the support of the Illinois tion, which backing bill before the state Legislature bring all receiverships under the direct control of single state superintendent. On the other hand, certain court judges have challenged Barrett's authority to resignations receivers serving under circuit court appointment.

6. February 26, 1933 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, February 26, 1933

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RULES RECEIVERS ILLEGALLY NAMED Illinois Judge Declares Acts of State Auditor Null and Void Chicago, Feb. bank receiver the Illinois, was be illegally office his acts were declared null void today by Judge Denis superior of Cook county 400 The drastic ruling, which would plunge the liquidating banks throughout the state, be appealed the attorney general. Judge Sullivan founded his opinion technicality the state banking delegated the authority fix and terms their bonds. delegation legislative the court has adjudged by the supreme court and invalidates the enThe case been brought by the positor Phillips Bank lenged the the statute and asked removal of Charles H. Alvers receiver The attorney general, resenting the auditor, entered demurrer was overruled by Judge Sullivan and the act held unofficial the Illinois Bankers the decision, said that the supreme court upholds Judge Sullivan order legislative act might the actions of the bank receivers taken hitherto.

7. February 26, 1933 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, February 26, 1933

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ALL RECEIVERS FOR BANKS OF ILLINOIS DECLARED ILLEGAL bank receiver appointed by the state auditor of Illinois was held to be illegally in office and his acts were declared null and void Saturday by Judge Denis E. Sullivan in Superior Court of Cook County. The verdict affects 110 receiverships in Cook County and 400 in the state The drastic ruling, which would plunge into confusion the process of liquidating scores banks throughout the state, will be appealed by the attorney general. Judge Sullivan founded his opinion on technicality of the state banking act which delegated to the state auditor the authority to name receivers the amount and terms of their bonds. Such a delegation of legislative the court ruled, has been adjudged by the State Supreme Court and invalidates the entire section of the act. The case had been brought by the Automobile Rebuilding Company, depositor in the closed Phillips State Bank of Chicago. The company challenged the validity of the asked removal of Charles H. Alvers as receiver. The attorney general, representing the state auditor, entered demurrer but this was overruled by Judge Sullivan and the act An official of the Illinois Bankers decision, said that if if the Supreme Court upholds Judge Sullivan court order or legislative act might be necessary to ratify the actions of the bank receivers taken hitherto. The liquidation of defunct banks is already in an and transitional state because of new policy undertaken by Edward Barrett, who has just become state auditor. Barrett has asked the resignation of state bank receivers, purposing to effect economies in administration by consolidating liquidation under one receiver. principle has the support of the Illinois Bankers Association, which is backing bill before the state legislature to bring all receiverships upder the direct control of single state superintendent. On the other hand, certain Circuit Court have hallenged Barrett's authority to resignations of receivers serving under Circuit Court Judge Sullivan ruled that "it is quite apparent that the legislature did vest in the state auditor a delegation of power which is void for the reason that it is in violation of the state constitution. declared a holiday for period of days, and in modified form has been Immediately upon learning of the action the of the state of Michigan, made careful survey and then that similar action in Ohio was unnecessary. 'Daily watch over the situation since the first which made on Tuesday, February 14, has confirmed the of statement and added to the evidence that holiday applicable to banks in Ohio is unnecessary "During the past two years with constantly falling values, the banks of this state for the most part have been able to promptly the unusual demands for cash. "I propose at the present session of the legislature to offer for its consideration bill which if enacted into law, will, in my opinion, in the future not only prevent rumors the necessity declare a bank holday but which will all tances prevent the actual need thereof "I wish to again reiterate and impress upon the people of the state of Ohio that through no proclamation mine will this great commonwealth be cast into state of public inconvenience such as exists in the state of Michigan. DETROIT'S CLEARING HOUSE ANNOUNCES PLAN FOR SCRIP DETROIT, Feb. 25.-(P)-The Detroit Clearing House Association Saturday night announced plans to issue scrip as a medium of exchange in the city pending termination of Michigan's banking holiday Announcement of the scrip plan came shortly after it became known that further complicati in the Na. tional Bank situation have at Washington threatening to delay resumption of normal The scrip method was adopted as the most effective device for keeping up business and industrial activity. Details of the plan remained to be worked out After eight days of almost complete inactivity in banking in lower Michigan and three more days of operation under rigid limitations laid down by Governor William A. Comstock, group of merchants Saturday made the first demands for a loosening of the on February 14. Seventy southeastern men demanded of the governor that he use his newly acquired extraordinary to force the banks to open for more normal business. The governor explained that reof many outstate banks are tied up in Detroit which are only per cent. He said that only federal legislation could compel the Detroit banks to release more. In Detroit meanwhile, conferences continued large depositors and officials of the First NationalDetroit and the Guardian National Bank of on the proposed formation of two new banks which was expected, will release between 40 and 50 per cent of deposits.

8. February 26, 1933 Detroit Free Press Detroit, MI
Article from Detroit Free Press, February 26, 1933

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Illinois Banks' Receivers Out Appointments, Acts Voided by Court CHICAGO, Feb. 25-(A. Every bank receiver appointed by the State Auditor of Illinois was held to be illegally in office and his acts were declared null and void today by Judge Denis E. Sullivan in Superior Court of Cook County The verdict affects 110 receiverships in Cook County and 400 in the State The drastic ruling, which would plunge into confusion the process of liquidating scores of closed banks throughout the State will be appealed by the attorney genJudge Sullivan founded his opinion on a technicality the State banking act, which delegated to the State auditor the authority to name receivers and fix the amount and terms of their bonds Such delegation of legislative power the court ruled has been adjudged unconstitutional by the State Supreme Court and invalidates the entire section of the act The case had been brought by the Rebuilding depositor in the closed Phillips State Bank of Chicago The company challenged the validity of the statute and asked removal Charles H. Alvers as receiver The attorney general, representing the State auditor entered demurrer. but this was overruled by Judge Sullivan and the act held unconstitutional An official of the Illinois Bankers Association informed of the de cision said that if the Supreme. Court upholds Judge Sullivan court order or legislative act might be necessary to ratify the actions of the bank receivers taken hither- The liquidation of defunet banks is already in an uncertain and transitional state because of new policy undertaken by Edward Barrett who has just become state auditor Barrett has asked the resignation of state bank receivers, purposing to effect economies in administrat by consolidating liquidation under one receiver. This principle has the support of the Illinois Bankers' Association, which is backing a bill before the State legislature to bring all receiverships under the direct control of a single State superintendent. On the other hand. certain circuit court judges have challenged Barrett's authority to require resignations of receivers serving under circuit court appointment. Judge Sullivan ruled that "it is quite apparent that the Legislature did vest in the State auditor delegation of power which is void for the reason that it is in violation of the State constitution." He quoted the statutory provision that the auditor might appoint receiver and require of him such bond as he deemed proper. "Similar provisions in other statutes" the court said, "have been uniformly condemned by the Supreme Court of Illinois as being an delegation of power by the Legislature, which alone can fix the terms of the bond. It follows that that part of the law under which the auditor of public accounts takes possession of the assets of the bank is void. that no receiver has been validly appointed and that no lawful bond has been given."

9. February 27, 1933 Freeport Journal-Standard Freeport, IL
Article from Freeport Journal-Standard, February 27, 1933

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WILL TAKE APPEAL FROM JUDGE SULLIVAN'S DRASTIC BANK RULING General Otto announced day he will appeal direct to the preme court Illinois the ruling Superior Judge Denis Sullivan Saturday that bank receivers pointed by the state auditor are holding office illegally. The ruling made in complaint brought depositor in closed Phillips State bank of Chicago. plan to test this ruling in the high Kerner said, "because Judge Sullivan held the section the banking unconstitutional. That section dealing with the pointment of receivers was declared unconstitutional because delegated to the state auditor certain that only the legislature can hold.

10. February 27, 1933 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, February 27, 1933

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(Continued on Page Eight.) WILL APPEAL RULING ON BANK RECEIVERS Attorney General to Ask Supreme Court Review of Decision. Chicago, Feb. the Assoclated General Otto Kerner announced today he appeal direct to the supreme court the ruling perior Judge Denis Sullivan Saturday that all bank receivers pointed state auditor holding office illegally. The ruling made in complaint brought by the closed Phillips State Bank of Chiplan test this ruling high said, Judge Sullivan held section the That section dealing with the appointment of receivers was clared because delegated the state auditor that only legislajudiciary hold.

11. February 27, 1933 Anderson Daily Bulletin Anderson, IN
Article from Anderson Daily Bulletin, February 27, 1933

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Actions Of Illinois Bank Are Ruled Void In Case Chicago, Denis Sullivan ruled Saturday that all receivers closed banks in Illinois were holding office in viola tion of the state constitution and their actions The drastic ruling was made in suit brought depositor of closed Phillips State Bank and Trust Company of

12. February 28, 1933 Dixon Evening Telegraph Dixon, IL
Article from Dixon Evening Telegraph, February 28, 1933

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Bank Receivers Will Keep Posts Chicago, Feb. 27-(AP) -Attorney General Otto Kerner announced today he will appeal direct to the Supreme Court Illinois the ruling of Superior Judge Denis E. Sullivan Saturday that all bank receivers appointed by the State Auditor are holding office illegally The ruling was made in a complaint brought by depositor in the closed Phillips State Bank of Chicago We plan to test this ruling in the high court Kerner said, because Judge Sullivan held the section of the Banking Act unconstiThat section dealing with the appointment of receivers was declared unconstitutional because it delegated to the State Auditor certain powers that only the legislature or judiciary can hold

13. March 1, 1933 The Times Streator, IL
Article from The Times, March 1, 1933

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MAY HAVE TO RECEIVERSHIPS Here Essington Recent receiver appointed by Every the state auditor of Illinois illegally in office and held be null and void acts Denis Sullivan in by Judge perior court of Cook county. which would The drastic into confusion the process plunge scores closed liquidating the state, will banks throughout appealed by the attorney general. Streator there is but one bank In charge of receiver, the People's Trust and Savings. Weston Essington receiver of the closed institution. Based On Technicality. Judge Sullivan founded his opinof the state banking act delegated to the state auditor the authority to name receivers and fix the amount and terms of Such delelegislative power, the gation court ruled, has been adjudged unconstitutional by the state supreme court and invalidates the entire section of the act. The verdict affects 110 receiverships In Cook county and 400 in the entire state, The has been brought by the Automobile depositor in the closed Phillips State bank of Chicago. The company challenged the validity of the statute and asked removal of Charles T. Alverse receiver. The attorney general, representing the state auditor, entered demurrer but this was overruled by Judge Sullivan and the act held unconstitutional. An official of the Illinois Bankers of the decision, said that if the court upholds Judge Sullivan court order or act might be necessáry to ratify the actions of the bank receivers taken hitherto. New Policy Undertaken. The liquidation of defunct banks already in an uncertain and transitional state because of polIcy undertaken by Edward Bar. rett, who has just become state auditor. Barrett has asked the resignation of bank purposing to effect economies adby liquidation under one receiver. This principle has the support of the Illinois Bankers association which backing bill before the state legislature to bring all receiverships under the direct control of single superintendent. On other hand. certain court Judges challenged Barrett's authority require resignations of receivers serving under circuit court appointment.

14. March 3, 1933 Bureau County Tribune Princeton, IL
Article from Bureau County Tribune, March 3, 1933

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DENIES AUDITOR RIGHT TO NAME BANK RECEIVER Court Holds That Auditor Has No Right To Appoint Receivers Under The Law. Superior Judge Denis E. Sullivan of Chicago Saturday declared unconstitutional section 11 of the Illinois Banking Act which gives the state auditor the power to appoint receivors to take charge of the assets of closed banks. His ruling involves more than 500 such appointments made in Illinois by Oscar Nelson. former auditor, and his successor State Auditor Barrett. It invalidates the acts of these receivers in dealing with cash and securities which are estimated to exceed 150 million dollars in aggregate Holds Power Is Judicial The eternal conflict between the three divisions of government legislative, executive and judicialformed the basis for the attack upthe banking act. Judge Sullivan's opinion asserts that Fection 11 constitutes an "unconstitutional delegation of judicial power to the state auditor and is invalid. "The far reaching decision grows out of a bill filed by the Auto Rebuilding company, a small depositor of the Phillip State Bank and Trust company which closed in June, 1932. State Auditor Nelson appointed as receiver. Charles H. Albers who be gan liquidating the assets. The receiver's appointment was affirmed by Superior Judge William J. Lindsay and attorneys for the receiver then appointed. Following this action the Auto Rebuilding company. through its attorneys, Aaron Soble and Harold O. Mulks. started suit, alleging that the banking act was unconstitutional and asking for the appointment of a new receiver by Judge Sullivan Tells How Ruling Applies In this new suit the bank. the auditor. and Albers, who were named codefendants filed general demurrers. asking dismissal on the grounds that the case was pending before Judge Lindsay Judge Sullivan's ppinion yesterday was on those demurJudge Sullivan explained to reporters that all banks in the state which have been closed by the state audifor will be affected by the ruling. He shid appointments of receivers would be invalidated in all cases where such appointments made by the auditor were merely approved by courts. "No court can approve an invalid appointment, such as made by the state auditor." said Judge Sullivan. "However, where judges actually set aside the appointments of the auditor and entered their own appointments independently, my ruling would not apply. It would not matter whether the receiver appointed by the judge was the one who formerly had been appointed by the Majority May Lose Jobs Under Judge Sullivan's ruling, the majority of all bank receivers will lose their jobs. Judge Sullivan stated in his opinion: "Before we get very far in construing Section 11 of the banking act we are met by that part which provides as follows: 'If the auditor determines that the bank cannot be reorganized and that the same should be liquidated through receivership. he should appoint a receiver and require of him such bond security as he deems proper. "Upon reading this section it must at once become apparent that the provision which states, He (the andftor) shall appoint a receiver and require of him such bond and security as he deems proper,' is one that preseribes no rules and imposes no standards by which the auditor is to determine the amount of the bond or the conditions which it should contain. its purposes, or any instruetions by which the auditor may be guided. and therefore the statute delegates legislative power to an exofficer. Decision to Be Appealed "All such conditions are left i) the uncontrolled discretion of the executive officer. Everything is left wide open. In short the terms of the bond may vary as the caprice of the executive officer may determine. Because the appointment by the state auditor of the receiver of any closed bank is unconstitutional, the judge ruled. the bonds which such receivers post to protect the creditors of the banks also are unconstitutional. Judge Sullivan stated that surety companies which furnished such bonds can refuse to supply protection for which they contracted. Assistant Attorney General Clausen stated that he was uncertain of the course which would be pursued in appealing the decision. He said that all receivers of closed banks would remain in charge until the case was passed upon by the Supreme court. He said that he would confer with Attorney General Otto Kerner to decide on the method of appeal.