Peoples State Bank (South Bend, IN)

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ASKED Court Grants Five Per Cent Dividend to People's State Depositors COUNCIL TO BACK ISSUE Takes HUNT WIDENED $37,892 TO BE Shopping Seriously Hunt North Liberty Bank Bandits. FOR $350,000 TURNED OVER IN ROBBERY AT

ON WEDNESDAY

Bingham's Ruling Follows Petition by Bank, Acting as Receiver.

FRANKLIN TRUST CASE SET

Pyle Fixes Dec. 24 for an Accounting to County; School Brings Suit.

Judge J. Fred Bingham in superior court No. to-day presented depositors of the defunct People's State bank with Christmas present. The depositors, who have total of more than $750,000 tied up in the bank. will be able to collect five per cent dividend their deposits any time after Wednesday. Judge Bingham's order for the dividend was made on petition presented by the Western State bank. receiver for the Peoples' bank. showing that the receiver has $52.574.01 cash on hand. The five per cent will to $37.leaving the undistributed balance. Against this balance, however, are claims aggregating $13,336.96. During the last year, the petition shows, receiver has collected $117,019.85 and has paid out $64,445.84 in claims. Judge Bingham's order is effective Dec. but checks on the five per cent dividends will be available bank after Wednesday. John Niemic, attorney for the receiver, said to-day.

Tax Anticipation Warrants Would be Sold Under Bill.

NOT DUE TO MANAGEMENT

Plight Traced to Frozen Assets in Closed Banks, Says Knoblock.

For the first time in its history the city is faced with serious shortage of finances with which to meet current expenses, it was revealed Monday night when bill authorizing issuance of $350,000 worth of tax anticipation warrants was introduced and referred to the committee of whole. City Controller George A. Knoblock said to-day the shortage due to frozen assets in closed banks where city funds had been on deposit to delinquencies the payment of taxes. The confronting the city not due to anybody's mismanagement but to conditions over which the city had no control,' he said. If the issue is authorized by the council the would be sold in anticipation of taxes be collected next spring. The maturity of the warrants would be 150 days and they would bear interest at the rate of five per cent per annum. propose sell worth of the warrants soon as the issue is approved.' Mr. Knoblock said, "and reserve the other $150,000 worth for As the result of action taken Monday night $39,000 will be appropriated from the general fund to the street lighting department $200 will be alloted to the board of public works for the balance of the city's share to Twyckenham bridge; $3,100 will be spent for combination ambulance and police patrol and $11,425 for new fire department equipment; $1,250 will go to the finance department to pay the premium on the $250,000 surety bond in behalf City Treasurer Duncan Campbell handling the Barrett law fund. Ordinances regulating peddlers and transient merchants were adopted.

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CITY WEST SIDE TOLD

Track Elevation Dispute Throws Civic Group Into Turmoil.

Charges that the city administration "stalling" and won't continue the west track elevation fight any further turned the quarterly meeting the can Central Civic committee into turmoil in St. auditorium Wednesday night. During the fiery demands were that organization alter its constitution by-laws and enter politics, making the track elevation its issue in the mayorality campaign next year. The demands voted down, The meeting got off to hectic start when accusations were leveled upon City Attorney Walter Clements for failure file briefs feedral court Wednesday the battle west side citizens with the New York Central railroad over speed of trains the city to eight miles an hour. The enter politics militant voiced by Bert Peter Valentine M. Sparazynski. The Rozewicz, president of the organization, Francis K Czyzewski, secretary, succeeded in killing the proposal. report on local utility rates and the progress of the civic battle for reductions was made by Anthony proposition to change the liquidating agent of the defunct People's State bank from receiver liquidator expedite liquidation quashed. resolution was passed offer four-year scholarship to Hedwige High school An apthe Polish peal cieties in South Bend and Mishawaka to contribute the fund for the Hausthe Polish

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FILED AGAINST

Stockholders of Defunct People's State Bank are Named.

Seventeen stockholders of the funct People's State bank were named in suits filed in the three courts today by the Westcounty ern State bank, receiver for the closed concern, asking total judgment of $24,325 on 100 per cent stock ordered supericourt No. Dec. 1931 and which was due Jan The all of which are identical with the exception of the amount of reveal that closed liabilities the asEach of stock par value of 100 per cent the stock is worthless at the time, according the Filed in Circuit Court. Those and the amounts asked in suits filed circuit court are: Helen 450 South Carlisle street, $350; Kaz450 South Carlisle mierz street, 10 shares, $1,300; Lott Korpal, West Napier street, shares, $700; Michael Hazinski 306 South Chapin street, five shares, Joseph Krol, 441 South $700; and Jackson street, four shares, $600. Those filed superior court No. the following: Joseph are against Wypiszynski, 321 Wakewa place, shares, $10,000; John Buczkowski, 1401 North Olive street, share, $200; Louis 1826 East boulevard, four shares, $575; Wladyslaw rural route four, New Carlisle, this county, five $800; Wypiszynski, Wakewa place, five shares, $800; 321 and B. 1121 Western avenue, one share, $200. Interest and Fees Asked

Suits filed in superior court No. against following Mary are Continued Page 14. Column

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SIX MORE SUED IN CLOSED BANK

Suits were filed in superior court No. today against six more stockholders in the defunct People's State bank asking a total ment of $2,200 on 100 per cent stock assessment ordered and due several months ago, according to the Western State bank, receiver and sponsor of the suits. Those named were: Alex Langel. 303 South Chapin street, four shares, $600; Michael Krol, 1028 Western avenue, two shares, $350 Marceli Latkowski. 2126 Lincoln Way West, two shares, $350; Leo H. Kruszewski, 1125 West Birner street, one share, $200; Joseph W Kara and Anna Kara 2306 West Washington avenue, four shares, $550. and Ignacy Lipinski, 1019 Western avenue, one share, $200 The assessments were ordered to aid in offsetting liabilities of the bank which exceed the assets by $498,399.60.

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10 MORE BANK SUITS ARE FILED Ten suits to collect the 100 per cent assessment levied on stockholders of the defunct People's State bank by the Western State bank, receiver, were added today to the more than two score similar actions already on file. assessment was Dec. 9. 1931, and was due in 45 days. Those named in the actions filed in circuit court today John J. Dietz, 1359 West Fisher street, one share, $200; Peter Piechoski, rural route No. 4, North Liberty, four shares, $600; Flo Florkowski, 1050 West Napier street, one share, $200; John Gupezynski, 1018 West Napier street five shares, $700, and Frank Barkowski 501 North Studebaker street, one share, $200. The following were filed in superior court No. 1: Stanislaus Wojciech Klota, 2108 West Linden avenue, two shares. $350: Frank Taberski, 417 South Brookfield street, five shares. $750; Julius Jerzakowski, 1917 West Linden avenue, two shares. $350; and Lodge Sokolowski, 1015 West Durham street, five shares, $750.

GUARDIANS DINE TUESDAY.

The Camp Fire Guardians' association will have a dinner meeting at 6 30 o'clock Tuesday evening in the home of Mrs. Earl Kuntz, 2909 South Michigan street. The evening will feature an out -doors supper if the is suitable and officers will serve as hostesses.

SMILERS LOSE 4 TO 3.-

The W B. A. C. softball ten defeated the Smilers A. C. to 3 on the Benjamin Harrison field Sunday morning. Davis, winning hurler, struck out 18 batters and contributed home run to his own

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SUIT ASKS FOR COURT RULING ON STATE ACT

Constitutionality Hit in Action Filed by Arnold.

BANK RECEIVER JOINS FIGHT

Parker Points to Possibility of County Levy for Payment.

Constitutionality of the intangible tax law passed by the recent Indiana general assembly was challenged today on 12 points in a suit for declaratory judgment filed by Walter R Arnold. president of the St. Joseph County Bar asso-

The law. affecting about 35 per cent of the state's population or approximately 55,000 citizens of St. Joseph county, was attacked in the suit as in violation of both the state and federal constitutions County Clerk Frank N. Nevins and Adrian Ross. defendant in promissory note judgment are made defendants The suit was filed in superior court No. and Judge J. Fred Bingham will be called upon to make the first judicial ruling in Indiana on the new law

Lutz May Argue Case. Attorneys said the usual procedure calls for notice of the suit to be sent to State's Attorney General Philip Lutz. jr., in Indianapolis. He will either appoint a deputy to argue the case here or appear personally in behalf of the state to defend the law's constitutionality County Clerk Nevins is involved only as technical defendant, as also is Ross, for purposes of the test case In the petition to be filed by the bank receivers all county and state officials connected with the tax its collection will be made defendants. Simultaneously it was announced today by Orie Parker, attorney for Miss Ethel Weaver, receiver of the People's State bank, that an intervening petition would be filed in connection with Arnold's suit, asking Judge Bingham to suspend of the tax law as far as it affects the liquidating

Taxes Bank's Judgments.

Parker explained that the bank's assets include approximately $160,000 in judgments, all subject to the new tax The receiver, he said, has no funds to purchase the intangible tax stamps and if it is not paid within 10 days it delinquent, with the result that the tax is increased four times Since the bank receiver is an officer of circuit court, the attorney pointed out, it becomes the duty of Circuit Judge Pyle responsibility for payment of this tax. He in turn must go to the county council for an appropriation. Consequently, he said, the intangible tax when applied to banks in receivership creates the absurd situation of the county levying funds with which to pay state tax. Among reasons cited in Arnold's suit for the unconstitutionality of the law is one alleging that the whole legislative session was invalid because no enumeration and reapportionment of representatives has been made in Indiana since 1921. The state constitution, section No. article No. 4, says that the assembly must Continued on Page Eight. Column Five.

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ACT TO SEIZE ZABIK PROPERTY

Foreclosure action on the property of Mr. and Mrs. John Zabik, 2630 Western avenue, has been started by the Polish Roman Catholie Union of America. In a suit filed in circuit court judgment of 500 on a promissory note made out Sept. 10, 1930, is asked together with a receiver to collect rent on the property which was mortgaged to secure the note. Named as co-defendants who may have interests in the Zabik property are the Polish Savings association, 1206 Western avenue, Western State bank, receiver for the defunct People's State bank. and the Lock Joint Tube company, of South Bend.

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BANK TO PAY $35,882.

SOUTH BEND April Deposit in the closed Peoples State per dividend April the result of petition filed John Niemic at torney for the Western State receiver the closed Superior Judge Fred Bingham will be asked dividend, which total

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STOCKHOLDER IN BANK HERE SUED ON ASSESSMENT

Sylvester J. Manuszak, stockholder in the closed People's State bank, was sued in superior court No. 2 today by the bank's receiver, the Western State bank, on a 100 per cent stock assessment ordered nearly three year ago and the final payment date for which was more than two years ago.

The assessment, ordered by the state department of financial institutions, was for $500 with six per cent interest. The payment was ordered on Dec. 9, 1931 and was payable Jan. 23, 1932. The suit asks a total of $700.

THROAT SLASH FATAL. By United Press.

SULLIVAN, Ind., April 25. — Marjory Pepple, aged 6, whose throat was slashed by her mother Monday, died late Tuesday. The mother, Mrs. Mabel Pepple, who slashed her own throat, is in a critical condition.