Farmers Bank (Elk Horn, IA)

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SIOUX CITY BANK TO BE REOPENED

Comptroller of Currency

Grants Permission.

SIOUX IA. The First National bank here will be reopened within 60 days, a committee of depositors from the defunct institution said Thursday upon their return from Washington.

The committee obtained permission of the comptroller of the currency to reopen the which was closed Dec. 6. Similar permission is expected to be granted to the Sloux National bank, which closed the same day. Rumors of merger of the two banks into one of the strongest banking houses in northwestern Iowa are circulat-

BANK RECEIVER NAMED. ELK H IA. The Farmers bank here was placed in the hands of F. Kruse of Cherokee as receiver Thursday by Judge K. R. Cook Bank officers said they asked for receiver that assets might be conserved and all depositors paid in full. They blamed frozen assets, mostly collectable, for the closing The bank is capitalized at Its deposits total more than $600,000.

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COURT STAYS BANK ACTION

Elk Horn Case in Legal Snarl.

The Iowa supreme court Saturday afternoon temporarily stayed further proceedings in Shelby county district court in the liquidation of the Farmers bank of Elk Horn, pending its determination of novel legal questions involved. The order was issued after hear. ing in chambers by Chief Justice Faville and Justices E Albert and John M. Grimm of eight attorneys representing contending parties.

Writ Filed. Judge Kenneth Cook of Malvern had set Monday for hearing at Harlan on the receiver's proposal compromise settlement between the individual members the partnership in the private bank and its depositors. One depositor, S. H. Ahrenkiel, filed writ of certiorari the supreme court asking that the proceedings and Monday's hearing be stayed determination on his writ. creditor's committee filed petition as an original proceeding in the supreme court asking that Judge Cook be prohibited from trying the fact issues presented, alleging that he is disqualified.

Hearing Stayed. The court stayed Monday's hearing on Ahrenkiel's writ until further orders of the court, and ordered Judge Cook answer the creditors' petition and show why he should be prohibited from further Hearing on the petition was set for The Farmers bank, private institution at Elk Horn, town 513 population near the ShelbyAudubon county line, closed Jan. 29. 1931. H. Kruse receiver of the bank, which had deposits $450,000 time of closing. There were 37 partners in the bank.

Test Authority. Because Elk Horn is small community and Farmers was the only bank the creditors alleged that they were unable to find three disinterested parties necessary to file petition trial court for prohibition of Judge Cook's hearing case. Ahrenkiel filed his writ to test the authority the trial court and the receiver to make compromise settlement of the bank's liabilities.

Creditors' Committee. The creditors' committee consists of Marinus Larsen. Thomas Christensen and Dr. E. James. was at Saturday's hearing by Harry B. Swan of At. lantic, and Ernest Miller of Harlan. H. Salinger of Carroll, represented Ahrenkiel, and Sidney Kerberg Audubon appeared for some other creditors. Bennett Cullison and H. Byof Harlan appeared for some of the partners in the bank. The receiver by Donal Evans of Des Moines Tom Whitmore of Atlantic.

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SUIT SEEKS ASSETS OF ELK HORN BANK

RECEIVER ASKS $13,977 JUDG. MENT ON NOTES-FOUR APPEAL RULING.

Special to The Nonpareil. HARLAN, Dec. 19.-Many important cases have been filed in district court in Harlan. F. H. Kruse, receiver of the Farmers' Bank of Elk Horn, asks judgment in the amount of $13,977.15. interest and costs, against S. C. Pedersen, Peter Hoegh and Hans Carstensen. Among the assets acquired by Receiver Kruse by assignment from William Hoegh, were promissory notes the sum of $13,977, upon which judgment is now asked. According to Kruse's petition, William Hoegh acquired these notes at the time the Farmers' Bank Elk Horn purchased the Elk Horn bank in 1921. The defendants contracted to guarantee payment of the assets of the Elk Horn bank which were conveyed in the sale. Katherine M. Hansen, B. C. Hoegh, J. N. and H. Walter, have filed a notice of appeal from the district court to the supreme court on certain matters determined by the district court. The appeal is taken especially from an order and judgment directing Receiver F. H. Kruse of the Farmers' bank of Elk Horn to take possession of the property of the defendants, impound the same and pay the proceeds of the same to the creditors and depositors of the Farmers' bank. They also appeal from every adverse ruling in connection with said order and determination.

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DEFUNCT BANK RECEIVER SUES

AUDUBON, Jan. H Kruse, receiver the defunct Farmers bank of Elk Horn, seeks judgment totaling plus interest. from Audubon residents in four suits filed in district court here. He seeks to collect sums due the bank on promissory notes. Defendants are Raymond Andersen, $19,855.90; K. Pedersen, $9. Arnold and Agnes Lambertsen, The suits are filed through Boorman & Whitmore, Atlantic attorneys

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Judge Swanson to Aid Bank Receiver

HARLAN, Feb. trict Judge Swanson has been named to Cook; resigned, as judge for all matters pertaining the failed Farmers bank of Elk Horn. Byers appointed attorney for Kruse, receiver, succeed Boorman Whitmore of Atlantic, resigned.

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Paducahan Named In $464,085 Action Defunct Iowa Bank Receiver Sues Simon Moritz

Paducah, Ky., May 26.—Judgment for $464,085.39, one of the largest amounts ever involved in litigation in McCracken courts is asked in a petition filed in McCracken county circuit court by F. G. Kruse, receiver of the Farmers Bank of Elkhorn, Iowa, against Simon Moritz, of Paducah.

The law suit seeks to hold Moritz liable for the debts of the institution, a partnership, declared insolvent January 29, 1931, with the plaintiff appointed receiver. The petition, which was filed by Attorney W. F. McMurry and F. K. Byers, the latter of Harlan, Iowa, alleges that insolvency of each of the members of the partnership except Moritz and one other, Adolph Jersild, Chicago, has been adjudicated.

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Paducahan Named In $464,085 Action

Defunct Iowa Bank Receiver Sues Simon Moritz

Paducah, Ky., May 26.-Judgment for $464,085.3 one of the largest amounts ever involved in litigation in McCracken courts asked in a petition filed in McCracken county circuit court by F. G. Kruse, receiver of the Farmers Bank of Elkhorn, Iowa, against Simon Moritz, of Paducah. The law suit seeks to hold Moritz liable for the debts of the institution, partnership, declared insolvent Janary 29, with the plaintiff appointed receiver. The petition, which was filed by Attorney McMurry and K. Byers, the latter of Harlan, Iowa, alleges that of each of the members of the partnership except Moritz and one other Adolph Jersild, Chicago, has been ad judicated.

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Receiver Among 11 Indicted in Elk Horn Bank Investigation president of the closed Farmers bank of Elk Horn, private banking institution, and F. H. Kruse, the bank's receiver, were among 11 persons under in connection with the bank's affairs. County Attorney Jake More said four indictments charging fraudulent banking have been returned, six charges receiving deposits in an insolvent bank, one charges perjury and seven charge fraudulent transfers of funds. The 18 indictments climax a long series of court actions growing out of the bank's closing more than two years ago. Depositors have received dividends of approximately 10 per cent since the bank closed. More said a number of those indicted have appeared and made provision for posting bond. Others were Expected to appear Wednesday, he said.

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Indictment of Bank Receiver Is Dismissed

Harlan, Ia.-Special: Indictment the closed Farmers Bank of Elk Horn on charge of making or executing fraudulent conveyance, dismissed Tuesday by Judge Homer Fuller in Shelby county district court.