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Liable for Kansas Directors Deposits Accepted in Period of Insolvency. Kansas Washington, May law, under which directors of state banks are held liable for deposits received after their banks become insolvent, was sustained today by the supreme court in twelve cases arising out of the failure of the Butler County State Bank at El Dorado, Kansas. H. Ferry, one of the directors, and the executor of A. Kramer another, contested judgments awarded Alice M. Ramsey and other depositors. They contended the law was invalid because it was based on the presumption that the directors, under all circumstances. knew whether the bank was insolvent, and could therefore be held individually liable for all deposits received after the bank should have been closed. The ruling of the United States supreme court today in the Butler County Bank case upheld the judgment of the Kansas supreme court February 12, 1927, under which it was held that officers and directors of state banks in Kansas were liable for deposits after the banks became insolvent. The El Dorado bank failed in 1923. It had been in shaky condition for several years and this fact was known to the directors, as well as the state banking department. The late J. B. Adams, for years prominent Republican leader and former state senator, was the principal stockholder and officer. He died in 1921 managing while an examination of the bank was in progress. Suits were filed by several depositors, after the failure, against the directors and officers. It was alleged the defendants became individually liable when they approved acceptance of deposits after it was known the bank was in an unsound condition.