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Director of Closed Bank Ends His Life HERRIN, III, Jan. J Wills, director of the closed City N itional Bank. was found dead today in his home. A bullet had been fued through his head. Authorities be lieved he committed suicide because of financial reverses
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distributed among the banks. HERRIN. Ill., Jan. 18. (U.P.)-A. J. Wills, director of the closed City National bank, was found dead today in his home. A bullet had been fired through his head. Authorities believed he committed suicide because of financial reverses.
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SUIT BETWEEN BANK RECEIVERS IS HEARD Federal Judge Wham heard eviJersey dence yesterday in the suit of Ben Sneed, receiver of the City National Bank of Herrin, III., to enjoin Hal Trovillion, receiver of the State Donabouts Savings Bank of Herrin, from selling securities received as collateral for $15,000 funds of one bank deReduced posited in the other. The state bank was closed several months before the national bank, and Trovillion collected $15,000 in suits enforcing the double liability of the stockholders of the state bank, the evidence showed. $3.98 This sum was deposited in the national bank, and securities were turned over to Trovillion covering the amount of the deposit. When the national bank in turn Four Distinctive Styles closed, Trovillion, announced his intention of putting the securities on Included in This Group the market. Ben Sneed, receiver of Regularly $5.98 the national bank, brought an injunction suit against him. Mother, 102, Survives Woman, 67. fits and looks like dress, yet has the comfort of By Associated Press. negligee. In Beetroot, jungle VERSAILLES, MO., February 9. brown, military blue and -A daughter of the Versailles comArab green. Sizes 14 to 40. munity's oldest resident, Mrs. Sarah Ann Jones, 102, will be buried here Floor.) tomorrow. The daughter, Miss Georgia Ann Jones, 67, died Tues-
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Suit® Between Bank Receivers Is Heard Federal Judge Wham heard evidence yesterday in the suit of Ben Sneed, receiver of the City National Bank of Herrin, to enjoin Hal Trovillion, of the State Savings Bank of Herrin, from selling securities received as collateral for $15,000 funds of one bank deposited in the other. The state bank was closed several months before the national bank, and Trovillion collected $15,000 in suits enforcing the double liability of the stockholders of the state bank, the evidence showed. This sum was deposited in the national bank, and securities were turned over to Trovillion covering the amount of the deposit. When the national bank in turn closed, Trovillion, announced his intention of putting the securities on the market. Ben Sneed, receiver of the national bank, brought an injunction suit against him.
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BANK PRIORITY FUNDS DEPOSIT REVERSED April Frowning the practice of banks guaranteeing part of general deposits to the exclusion of others, the United States Circuit Court of Ap. peals today had reversed decision of Federal Judge Fred of The decision was given in the case of Ben Sneeden. receiver for the City National Bank of Herrin. against the city of Marion. III., Ray Carroll, treasurer! the tinental Illinois National Bank Trust Company, the Fidelity Casualty Company of New York Sneeden appointed receiver for the City National Bank in 1931. His deposit of city of Marion funds was guaranteed by bank securities, which in turn has been deposited with the Continental Illinois Bank. The receiver filed suit to the amount for the benefit creditors. Judge dismissed the indicating his belief the city Marion had claim. The celver appealed.
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BANK RECEIVER HERRIN WINS CHICAGO, April 27-Frowning the of banks in guaranteeing of their general deposits to the exclusion other deposits, the S. circuit court of Appeals today and the decision of Judge Fred Wham at Springfield. The decision wasin the case of Ben Sneeden, receiver for the City National Bank at Herrin against the City of Marion, Ray C. Carroll, City treasurer, Continental Illinois National Bank and Trust Company and the Fidelity and Casualty Company of New York. Sneeden was appointed receiver for the City National Bank in 1931. The deposit of of City funds had been guaranteed by the deposit of bank securities with the Continental Illinois National Bank and Trust Company. The receiver filed suit to recover the amount of the securities for the benefit of all the creditors of the closed bank. Judge Wham dismissed the suit, indicating he believed the city of Marion had prior claim. The receiver appealed. The decision fthe U. S. Court of Appeals at Chicago in favor of the receiver for the City National Bank does not in itself mean the loss of any part of the city of Marion's posit the bank to the city itself, city officials pointed out Thursday. The securities in question were guarantee to the insurance company which nturn had written bond guaranteeing the city against loss. The city claim payment of the deposit from the Fidelity and Casualty Company of New York which wrote the bond.
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GIVE REVIEW IN BOND CASE Herrin Bank Receiver Seeks Funds Pledged for City Deposits Washington AP The city of Marion, III., and others granted review today by the supreme court of decision of the seventh circuit court of appeals holding that the city national bank of Herrin, Ill., in receivership. is entitled to recover from the Continental-Illi nois National Bank and Trust company of Chicago certain assets deposited with the latter as security for municipal deposits of the city of The securities were pledged in August 1931. The Fidelity and Casualty company of New York furnished the bond required of its treasurer by the city of Marion. In October following the City National Bank of Herrin into receivership, having on deposit at that time $16,430 of the city of Marion funds The receiver brought suit in federal district court to recover assets which had been deposited with the Illinois as security for deposits of the city, but lost. The seventh circuit court of appeals ordered return of the assets, holding that the national bank had no authority to pledge its assets as state banks in Illinois are not authorized to do so.
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DEPOSIT SECURITY ARGUED IN COURT Supreme Tribunal Hears Protests of Withdrawal of Pledged Collateral. By the Associated Press. Two cases involving questions of authority of national banks to pledge assets to secure deposits were argued yesterday before the Supreme Court. In one the Texas & Pacific Railway sought to set aside a decision holding the receiver of the First National Bank of El Paso was entitled to recover Federal bonds it had pledged as security for deposits made by the railroad. In the other, Marion, Ill., contended a decision returning to the City National Bank of Herrin, Ill., assets it had pledged for deposits by the city should be reversed. Counsel for the Philippine Islands participated in the argument of the latter case. The Philippine Islands has on deposit in national banks in this country between $65,000,000 and $75,000,000. Her attorneys asserted the people of the islands were entitled to the protection of having the deposits secured by bank assets. Counsel representing the controller
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Washington, Reb 5-(UP)-National banks have no authority to pledge securities to guarantee deposits of public funds the supreme court held in an important decision today. The ruling was made on an appeal brought by the city of Marion. III, against the receiver of the City National bank in Herrin. The case was of interest because of the widespread practice of public officials when depositing public funds, to have securities held by the bank set aside to guarantee the deposits. In the Illinois case, Ray C. Carroll, treasurer of Marion, deposited city funds in the Herrin bank, which in turn deposited security with the Continental Illinois Bank & Trust Co. When the Herrin bank closed, Carroll had $16,130 on deposit. The receiver of the bank brought suit to have the pledge declared void. The district federal court refused his plea but a divided circuit court granted it. The supreme court upheld the circuit court. Other Decisions Washington, Feb 5-(UP)-The power of the federal government to collect income taxes on interest received from delinquent tax certificates issued by counties and municipalities was upheld today by the supreme court. The court refused to review an appeal from a court of claims ruling which held the income taxable. The appeal was brought by Charles H. Wiltsie, Rochester, N. ¥. Washington, Feb 5-(UP)-The supreme court today decided to hear argument on the appeal of Chief of Police Michael J. Healy of Manchester, N. H., from the held invalid the New Hampshire state law regulating hawkers and peddlers. The ruling was m le in an quity suit to restrain Iealy from enforcing the law as applied to door-to-door sólicitors selling vacuum cleaners. Washington, Feb 5-(UP)-The supreme court today refused to reconsider its decision upholding the Minnesota mortgage moratorium law. first emergency legislation to reach a test before the ccurt. The court denied the Home Building and Loan association a rehearing on the case. Washington, Feb 5-(PU)-The supreme court today approved the eighth circuit court ruling which held receivers for W. B. Foshay, defunct Minneapolis, Min, securities firm, could not sue Wilbur B. Foshay and Henry H. Henley to recover $325,000 in dividends improperly paid during the corporation's life. Washington, Feb 5-(UP)-The supreme court today denied the State of Alabama permission to file a suit challenging the validity of laws.of other states barring prisonmade goods. Alabama contended the laws were destroying the value of the state prison factory for production of cotton goods. The state sought to file with the court an original suit to have the prison labor laws of 19 states and the United States law on the subject declared invalid. Five of the states have laws barring prison goods from their markets. Fourteen other states require convict goods to be plainly marked. Alabama later dropped the attempted action against all but the United States and the five states barring the goods. They are Arizona, Tenho, Montana, New York and Pennsylvania. Washington, Feb 5-(UP)-The Aluminum Co of America today
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by the high court in the Georgia case. Analyzing the February 5 opinion of the Supreme Court in the case of the city of Marion, Ill., against the receivership of the City National Bank of Herrin, Ill., O'Connor asserted the court held that prior to June 25, 1930, a national bank was without power to pledge assets to secure deposits of a State or its political subdivisions and since that date could only pledge assets for that purpose when located in States where State banks were authorized to make such pledges. The contract under which the Sparta Bank had pledged its assets to secure deposits made by Georgia was made on July 12, 1928, he asserted, contending it was made before Congress had authorized such pledges by national banks.
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RECOVERS Surety Company and Bank Receiver Reimburse City for Herrin Bank Deposit Complete reimbursement has been made to the city of Marion for posits totalling approximately caught in the closing of the City National Bank of Herrin. five per cent of the deposits were paid by the bank and the remainder was paid by the bonding company which underwrote the city treasurbond. Three weeks ago City Treasurer Ray Carroll received from Ben Sneeden, receiver for the closed bank, divident checks for 45 per cent of the deposit which was the per cent divident the bank had previously paid general creditors of the closed institution. The city not previously applied for dividends las general creditors due to the fact that litigation involving the city's were being fought out in the United States Supreme Courrt. Last Friday Mayor H. Whitomb and City Clerk Grady went to Louis where they were delivered check from the surety for the remaining 55 per company cent of the city's frozen deposit. The surety company had likewise withheld payment of he money pending the outcome of the tion which the surety company by sought to realize upon certain lateral which had been given it by officers of the bank as depository bond at the time the city's money in the bank. The was deposited final court decision having gone against the company it arranged to pay off the city's loss. Most of the represented by money the deposits collected for was money special assessment bond holders and had been carried on the city trreasurer's books as balance on hand in various acounts pending settlethe of the claim against the ment city's bank and the surety company.