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Preferred
Recent Decision By Judge Sheean Confirms Former Opinion Judge Emerson
Petition of Frank G. Bilmire of Rock Falls that he be given ferred claim of $2,500 against the funct Rochelle Trust and Savings bank on charges that bank officials fraudulently sold him second note for first mortgage note disallowed Friday by Judge Frank Shecan in Ogle county cuit court. According to testimony Bilmire chased note for from bank officials several years before the bank closed with contract declaring the note be first mortgage. mire admitted that he learned that the note not of first before the bank closed and gage cepted of $500 on the payment principal. This, according to Judge Sheean's decision, automatically barred mire from receiving preferred claim due to the fact that he had that his security was not first before the bank closed. Attorneys Robert Bracken and James of Dixon, counsel for the bank receiver, opposed Bilmire's claim. Testimony also taken Friday the claim of Mrs. Lucy File, chelle, against the Rochelle Trust and Savings bank. Mrs. File also charges that bank officials sold her worthless second mortgage notes first notes in the sum of gage cision in this suit taken under visement by Judge Sheean. Five preferred claims were allowed against the defunct Rochelle bank that bank officials defrauded charges investors of total of former Circuit Judge William more than year ago. Judge Emerson, his decision, however, that only the cash hand the bank the time of its closing could used in the payment of preferred claims. This ruling upheld in of the appellate and, pointed by Attorney Bracken, that regardless of how many preferred claims are granted against the bank on fraud charges, payment only be made from $16,000, which was the amount of cash hand in the bank when closed. The five claims already granted exceed the total amount of available funds from which they can be paid, pointed out. additional claims allowed, the fund are have to be prorated among the preferred claimants, was declared. the general assets of the bank are not assessable for preferred claims, the appellate court held. All seven claimants charge that they were given first mortgage tracts securing notes which they had the bank. After the purchased bank closed in 1931, the claimants clare they discovered that the notes for second and gage Bertschied, former chelle resident now living in California, who was cashier of the Rochelle bank, named in majority of the petitions as the bank official who "fraudulently deceived the inves-t Claims against the bank which have been allowed preferred in Ogle county circuit court including intercharges are follows: Mrs. AmeWeinrich estate, Miss Emmo Kern, Miss Ruth Blackman trustee, Mrs. as $1,084.81; and Mrs. Bertha Osee, Haddassa Cleverstone, Claims against the bank which have been filed but not heard by the court those Miss Emma Kern, Mrs. Charlotte Broitzman, Mount Carroll, $2,000; Zimmerman, Miss Ruth BlackRochelle, Rochelle, guardian, $3,000; Frank Cawley, Rochelle, Rochelle, and Mrs. Morris, Sarah Henry, Rochelle,
