Peoples State Bank (Sheridan, MI)

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President of Closed Institution at Sheridan Also Defendant in Action

SEEK TO RECOVER $5,000

Plaintiffs Claim Money Was Withdrawn Improperly From Institution

STANTON, Mich., June John Hudson, president of the closed Peoples State bank Sheritreasurer the Gleaners, made defendant with the Gleaners instituted in behalf the bank cover alleged have been withdrawn improperly from the institution suit, which filed in circuit here charged that the and other Gleaners was by Hudson although other limited small withdrawals the bank placed receivership. Another filed. naming Bower. Montcalm county treasdefendant. Bower alleged have taken $1,000 county funds violation of the drawal rule.

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PLANS TEST CASE ON ESCHEATS LAW

O'Brien Says Enforcement of Act Cannot Be Prevented. constitutional holds that the enforcement of the law cannot be prevented because bank depositors neglect to file claim for their deposit in closed bank. By this answer, prepared jointly by the attorney general and Maxwell L. Black, state public administrator, the burden of proof of the unconstitution of the law is thrown upon the receivers of five closed Montcalm county banks. They are opposing the demand of Black that they turn certain funds over to the state. The under the new law, has the right to seize unclaimed and abandoned deposits in bank, Receivers say that many depositors neglected to file claims for their deposits within the allotted period. Receivers represent the Edmore State bank, the Peoples State bank of Sheridan, the Peoples State bank of Butternut, the Trufant State bank and the Farmers and Merchants State bank of Carson City. Intention to make a test case over the issue in Montcalm circuit court before Judge Royal A. Hawley is indicated by the attorney general and the public administrator The receivers are represented by D. Hale Brake, Morris K. Davis and Frank A. Miller, all of Stanton.