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Schornick Case Against Directors of Defunct Crotitysville Institution Compromised.
TO PAY $10,000 DAMAGES
Agreement Reached After Case Called In Bartholomew County.
The long drawn out suit by Frank Schornick, receiver, against the directors of the deffunet Crothersville State Bank for damages has been officially settled following compromise by which the defendants agreed the receiver $10,000, The case was settled Monday when called for trial in the Bartholomew circuit court at Columbus. The compromise was made legal and binding by being made matter of court record judgment for $10,000 against the defendants, of the attorneys stated today. The attorneys for the receiver greed to settlement of $10,000, understood, after they learned that the defendants became directors the bank in at time when was already insolvent. When the defendants were made directors of the institution held approximately $80,000 of uncollectible paper. Recovery against the defendants was limited to the payment of dividends after they went into office and other minor items. Court action staid for sixty days to give the defendants time arrange the details of paying the $10,000. said there is priarrangement between them as to the apportionment of the sum. The directors of the defunet bank Frank Butler, William Rider, the administratrix for the esof tafe of the Howard R. Rider, Henry Kovenor, Henry Beckman and Sylvester Applegate. The theory underlying the suit as expressed, was that the directors of the bank had been administering the negligent affairs of the bank and that this had resulted in large losses to the depositors. The suit was filed March 12, 1924, in the Jackson circuit eourt and was sent to the Bartholomew circuit court on change of venue, being set for trial Monday. The case was called before Judge Julian Sharpnack, and the compromise was reached before the jury called. Seba Barnes and Montgomery Montgomery, of this city, were attorneys for the receiver, while the defendants were represented by Shea & Hottel, of Indianapolis: Thomas M. Branaman and John Branaman, of Brownstown; Edward Elsner and Oscar Abel, this city, and Kollmeyer and dear, of Columbus. This is one of the most important cases filed in connection with the ceivership of the Crothersville State of Bank. The maze of legal actions rapidly being cleared away, looking towards final settlement of the ceivership, which started following failure of the bank September 12, 1923. The against Frank Butler, former president of the for $10,000 on personal bond, still pending. Sweet Sweet, contractors of Greencastle, also have pending against the receiver. contractors allege that posited $3,800 in the bank several before was closed, and seek days recovery upon the ground that offiof bank are liable when they cers receive deposits knowing bank is insolvent.
