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Bankruptcy Funds Involved In Closed Bank Case.
In an appeal and cross appeal filed in United Circuit Court of Appeals yesterday by Paul H. King and George A. Marston, Referee in Bankruptcy, Detroit, Mich., as appellants, and Reuben H. Rossman, of the Union Peoples National Bank, of Jackson, Mich., cross-appellant, Appellate Court, is asked to determine the status of bankruptcy of funds in bank which has been taken over by the Comptroller of the Currency. The order appealed from is that of District Judge John Knight, Detroit, reversing an order of the referee summarily directing Receiver Rossman to pay into Court $2,526.28, deposited by the bank as trustee in bankruptcy of the Hillsdale Grocery Company, bankrupt, Hillsdale, Mich., in its commercial department. The referees took the position that the fund held by the bank was in "custodia legis' and subject to summary order for pay. ment into Court. Judge Knight held that the fund was held by the bank as trustee "ex maleficio" and came into the hands of the bank's receiver as trust fund and that was to be considered as preferred claim subject to payment with other preferred claims as directed by the Comptroller of Currency. The bank and its receiver and Conservator from this order, contending that the fund is not entitled to preference but simply general deposit entitled only to the dividend which may be declared to general creditors and depositors.
Florida Corporation Appeals.
Appeal from the judgment of District Judge Robert R. Nevin at Dayton, Ohio, directing the jury to return verdict for the defendants in their suit against Arthur R. Hill et. al., Springfield, Ohio, was filed in United States Circuit Court of Appeals by the Gratigny Plateau Development Corporation et al., Miami, Fla. The case is an outgrowth an alleged deal for land in Miami in 1925. The Florida corporation alleged the defendants entered contract with to purchase tract of land for and that $96,666.65, with interest at per cent from January, 1926, is due on it.
Truck Driver Arraigned.
Under a charge that he forged and passed Government compensation check for $38, issued to Luther Marion Morgan, 1336 Main Street, Cincinnati, last February, Frank Dewitt, 38 years old, 103 West Fourteenth Street, truck driver, was arraigned before William P. Hohmann, United States He denied guilt and he was held in $1,000 bond for his appearance for preliminary August 18. In default of the bond he was committed to Hamilton County Jail.
