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RFC RATIFIES $82,000 LIBERTY BANK LOAN RECEIVER SEES POSSIBLE WAIT Court Actions May Cause Dividend Delay Until Fall, Says Pietsch. An $82,000 nance corporation loan on of the closed Liberty State bank has been approved in Washington, D. Carter deputy said but he plained no dividend payment from this source can be made before autumn unless methods are found whereby possible to the apparently unavoidable delay In establishing preferred claims in court against the bank. "A petition will be filed Monday circuit court," he to publish notice to depositors and all others interested in the bank that application for the loan has been filed. The time will be fixed for hearing objections, court hearing on such step the process of liquidation state legal requirement. Mr. Pletsch Shows Complications. Preferred claims already in the process of adjudication have sible maximum of Mr. Pietsch pointed out Adjudication process complications arise he from Those city's $134,000 claim relative of the securities and the Metropolitan Life Insurance company's claim in accountings on loans for alleged to have been negotiated through the bank when it was functioning as such. ruling was given the An city on its claim in circuit court and the matter has been taken the appellate court where It scheduled for hearing in October. Whether the be permitted to treat $134,000 In securities as protecting municipal funds on deposit and otherwise frozen in the bank. or whether the securities shall be again held to be assets of the bank are questions, Mr. Pletsch said, vitally affecting the payment of dividend. Preferred claims, he explained, must be paid first. Two Others Pay Dividends. The Liberty's deposit liability Mr. Pietsch said, is approximately $400,000. No dividends have been paid to date. The bank was placed under the deputy receivership of Mr. Pietsch last Oct. He applied last February for the RFC loan in an effort to hasten payment of dividend and later submitted with face value of $187,000 for RFC examination, the loan to be based on these assets. Two of the seven banks for which Mr. Pietsch is deputy receiver in McLean county which have paid dividends to date are the Exchange State bank of Bellflower and the State bank of Hudson. The former has paid 50 percent, or $86.which 35 percent from liquidation and 15 percent from #tockholders liability. The Hudson bank has also paid 50 percent. or $30,000. all from liquidation. Mr. Pietsch said Saturday he was placed in charge of the Farmers State bank of Colfax and the State bank of Lexington last month, succeeding Mayor James M. Allison, Lincoln. He was already in charge of the Farmers State bank Downs and the State bank of Saybrook in addition to the Liberty, Bellflower and Hudson banks. COMPROMISE PROPOSED Circuit Judge Chalmer C. Taylor Saturday heard testimony whereby $40,000 the Saybrook State bank's $132,000 in deposit liability will be struck off through compromise proffered by Deputy Receiver Carter Pietsch and representatives of the Pacific States Life Insurance A court order sanctioning the compromise is expected to be entered Monday. The Pacific company, it was explained, took over assets of the former Chicago National Life In-
