Article Text
Attorneys for the Kenosha State Bank Carry the Receivership to the Supreme Court of the State. DEPOSITORS TO BE PAID IN FULL President of the Bank Offers a Surety Bond of Twenty Thousand Dollars to Assure Payment of Creditors. Before the close of another week it is possible, and indeed probable, that Frank S. Komp will again be in charge of the Kenosha State bank pending a decision of the Supreme Court on the appointment of a Receiver. Cooper, Simmons, Nelson & Walker, of Racine, who represent Mr. Komp in the litigation, this morning forwarded to the attorneys in this city copies of the appeal from the decision of the Circuit Court, and the case will be taken to the Supreme Court at once. In the order, which has not as yet been signed by the Circuit Judge, but which will be signed if it is approved by the attorneys representing the depositors, the Court provides that pending the settlement of the receivership in the Supreme Court of the State, the moneys and books of the bank shall be turned over to the former officials, and that they be allowed to settle with the creditors in person. The Receiver will then take no part in any further action that the bank may do. The order provides that before the property is turned over to Mr. Komp and his associates, pending the appeal, the latter shall furnish a surety bond signed by two sureties or by a surety company, subject to the approval of the Judge. The bond will be given to assure the Court that all creditors will be paid on demand, or on such, notice as their claims against the bank allow. This bond has been prepared and the surety named is the Fidelity and Deposit company of Maryland. This is the company which bonded Mr. Komp as treasurer of the Modern Woodmen Camp, and it is claimed that he has convinced the company of his sovlency. Should this bond be secured one of the strongest companies in the country would be backing the bank, and there would be no doubt but that every cent of indebtedness would be paid. This arrangement may be perfected yet during the present week, and in such event the depositors will be paid off as fast as they make demand for their money. It will then be possible for Mr. Komp to elect whether he will close up the business or continue the bank. The order has been received with favor by the attorneys for the depositors, and they will undoubtedly send the Judge an approval of the order this afternoon. Mr. Komp was at the bank this morning, and it is said that he will begin the work of paying off depositors as soon as the order is signed. In the meantime a legal fight is on between the Receiver for the Kenosha bank and the Receiver for the Wauconda bank, both claiming funds deposited by President Komp in the Corn Exchange Bank in Chicago. The Wauconda people are the first to act, and they have asked the courts to issue an injunction to prevent the money being paid to the Receiver of the State bank. The cashier of the Chicago institution states that the Wauconda bank had no account in the Corn Exchange, and for this reason it appears certain that the money will finally be awarded to the Kenosha bank.