First National Bank (South Glens Falls, NY)

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UPSTATE BANK SHUT

South Glens Falls, N. Y., May 23 (P).-The First National Bank closed its doors today.

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UPSTATE BANK SHUT

South Glens Falls, N. Y., May 23 (P).-The First National Bank closed its doors today.

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UPSTATE BANK SHUT

South Glens Falls, N. Y., May 23 (P).-The First National Bank closed its doors today.

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South Glens Falls Bank Receiver Reports Dividend Checks Now Ready

Frank M. Maryott, receiver for the South Glens Falls National Bank, which closed its doors last May, announced last night that dividend checks will be available for depositors today and tomorrow between the hours of 9 B. m. and 3 p. m., and between 7 and 8:30 p. m., and on Saturday between 8 a. m. and 12 m. Approximately $200,000 will be distributed in the first fifty-five percent dividend.

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Judge Cooper Sustains Claim of Town of Moreau gainst Bank

ASSIGNMENT OF BONDS HELD TO BE SECURITY FOR $16,000 DEPOSIT

Receiver of Defunct First National Bank of South Glens Falls Said to Take Title Subject to Rights of Town

DISTRICT COURT DECISION GIVEN

The claim of the town of Moreau, Saratoga county, against the defunct First National bank of South Glens Falls and Frank M. Maryott, receiver, for $16,075.58 deposited by the town in that bank, is sustained in a decision handed down yesterday by Frank Cooper, judge of the United States district court. The decision directs judgment in favor of the town.

Judge Cooper wrote 14-page opinion accompanying his decision. John W. Nichols and William E. Bennett represented the town and Brackett and Eddy, the bank and receiver On January 27, 1932, the late Austin L. Reynolds, then supervisor of the town of Moreau, had about $21,000 of highway monies of the town in his possession, which he wanted to deposit in the South Glens Falls bank He required, however, that to protect the town the bank should secure the deposit, and the bank, wishing to accept the deposit, gave security by an assignment of bonds of corporations which the bank owned. The assignment was evidenced by writ. ten paper signed and executed on that day and which stated that the purpose of the was to at all times adequately secure the deposit and that the bonds were to stand as collateral security and so remain during the term of the deposit. The deposit was made on the same day that the agreement was made. Bonds Not Delivered The bonds were not delivered, however, to the supervisor, but were allowed to remain in the custody of the bank. Selleck J. Varney, president of the bank, after execution of the agreement assigning the bonds, put rubber band about them and they were placed in safety deposit box which the bank had in the Glens Falls National bank, in which it kept certain of its securities. The bonds stayed there with the band around them and were found by the receiver on his appointment. One of the conditions of the agreement assigning the bonds was that the bank should have the right to withdraw any of them at any time should the deposit decrease, and that it should have the right to substitute from time to time other bonds in place of those assigned, if the market value of the substituted bonds should equal or exceed the ones withdrawn. The agreement also stated that the purpose was at all times adequately to secure the deposit, but in no manner to restrict the bank in the use of the bonds pledged. so long as sufficient collateral remained to cover the deposit. The bank was closed by the comptroller of the currency on account of insolvency on May 23, 1932, and Maryctt was appointed received When the bank closed there was on deposit with it, of town funds, $16,745.48 which was later reduced by an offset of $669.90 due from the town to the bank, leaving balance of $16,075.58 when the suit was brought. Receiver Co-defendant The receiver refused to recognize the validity of the assignment or that the town had security by reason of the assignment, and claimed that the security which the assignment purported to give was void because the bonds were allowed to remain in the custody Counsel for the town claimed that the delivery was not necessary and that the town acquired good and valid lien on the bonds and had security for the deposit by reason of the assignment of the bonds, and by the agreement made when the deposit was taken. The receiver also refused to recognize that the claim of the town was preferred. The town brought suit against the bank and the receiver. The case was submitted to Judge Cooper on February 4, and Judge Cooper has now handed down the decision supporting the town in its claim. The case is an interesting one, legal authorities say, as it involves the validity of an agreement assigning the bonds as security, when the bonds were allowed to remain in custody of the bank. The case also involved the rights the receiver and his the Judge Cooper held that there being no fraud and no subsequent purchaser, pledgees, mortgagees in good faith, and no execution attachment creditors, that the assignment of the bonds was valid as the receiver and that he took title subject to the rights of the town acquired by the agreement assigning the bonds as security for the deposit at the time the deposit was made.

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Check Is Awaited

Frank M. Maryott, receiver of the First National Bank of South Glens Falls and the Corinth National Bank, stated last night that he expected to pay a ten percent dividend to depositors of the South Glens Falls bank within a few days. He is now waiting a check for the dividend which will bring the total dividends of that closed bank to seventy-five percent of deposits. Eighty percent of deposits have been paid to depositors of the Corinth National bank.

Two new places were created on the board of directors of the Glens Falls National Bank and Trust company at the annual meeting of stockholders yesterday and Harold F. Bullard and Karl R. McBride were elected to fill them. Mr. Bullard is assistant to the president of Finch, Pruyn and Company and Mr. McBride is president of the Imperial Paper and Color corporation.

Stockholders of the Sandy Hill National bank at Hudson Falls elected four new directors. They are: Will Carleton, Wilbur F. Pender, William J. Reid and E. E. Sabourin. Attorney James Gibson, jr., of that village, was elected a director and trust officer of the People's National Bank to succeed the late Attorney Willoughby L. Sawyer.

Elections Are Listed

Directors were elected by banks in the Glens Falls vicinity as follows:

Glens Falls National Bank and Trust Company—Directors: Daniel H. Cowles, Louis P. Brown, William T. Cowles, J. Edward Singleton, James Knight, Robert H. Rheinlander, George I. Davis, Harold F. Bullard, Karl R. McBride. Organization will be made at the regular meeting next Monday.

First National Bank, Glens Falls—Directors: B. B. Fowler, Hubert C. Brown, Maurice Hoopes, J. R. McMullen, J. Irving Fowler, George F. Bayle, jr., D. B. Moynehan, Alfred S. Clark, Byron J. Lapham, Gray E. Safford, T. Coolidge Sherman and W. M. Bowden. Officers will be elected by the directors at the weekly meeting Monday.

Sandy Hill National Bank, Hudson Falls—Directors: H. L. Broughton, Will Carleton, C. W. Higley, jr., T. J. Horrigan, Wilbur F. Pender, William J. Reid, P. J. Riley, Erskine C. Rogers, E. E. Sabourin, John E. Sawyer, W. D. Walling. The organization meeting will be conducted at a later date.

People's National Bank, Hudson Falls—Directors: D. S. Griffin, P. B. Daly, C. W. Kellogg, E. C. Paris, Charles A. Kellogg, James Gibson, jr. Officers: President, C. W. Kellogg; vice president, D. S. Griffin; cashier, William H. Neilson; assistant cashier, J. Clark Wright; trust officer, James Gibson, jr.; assistant trust officer, E. C. Paris; teller, Ambrose Corcoran.

Fort Edward National Bank—Directors: Judge Wyman S. Bascom, John R. MacMurray, Almon P. Hill, Everett C. Bristol, George E. Smith, C. E. Wood and Jay S. Vaughn. The directors organized by electing the following officers: President, Almon P. Hill; vice president, John R. MacMurray; cashier, C. E. Wood.

First National Bank, Lake George—Directors: Miss Hilda Smith, Mrs. Frank W. Smith, Clayton Lanfair, Charles H. Lanfair, Wyman D. Pasco, Charles Forselle and H. C. Noyes. The directors organized by electing the following officers: President H. C. Noyes; vice-president, Miss Hilda Smith; cashier, Carl T Crandale; assistant cashier, R. Cutler Bradley.

Emerson National Bank, Warrensburg—Directors: Louis E. Reoux, Albert L. Emerson, Lee F. Stockton, Harry A. Reoux, Grace C. Somerville. The directors organized by electing the following officers: President, Louis E. Reoux; vice president and cashier, Albert L. Emerson; assistant cashiers

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A. L. SITTERLY IS NAMED RECEIVER FOR TWO BANKS

Glens Falls Man Appointed for South Glens Falls and Corinth Institutions

A change in the receiverships of the Corinth National Bank, which closed Dec. 15, 1931, and the South Glens Falls National Bank which closed several months later, was announced yesterday by Frank M. Maryott, receiver of the two institutions.

Mr. Maryott, according to his announcement, will sever his connection with the banks' affairs on March 15 and will be succeeded by A. L. Sitterly, Glens Falls, now receiver of closed banks in Whitehall and Poultney, Vt.