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BATTLE OVER BONDS TO DECIDE FATE OF DEFUNCT TRUST CO.
The decision of the State Supreme Court, awarding $22,500 of Liberty bonds to the County of Randolph to secure deposits in the Huntsville Trust Company when it failed, has created serious situation for depositors in that bank who had based hopes of getting back some of their money on a decision favorable to the contentions of the receiver of the bank and the state finance commissioner. It is not now believed that depositors will be able to realize much according to a general understanding of matters developing out of the receivership, it is said. Answer to this question now seems to hinge about snit on two surety tonds given by Huntsville Trust Company officials and issued by the Fidelity and Casualty Company of New York. The conditions covered in these surety bonds is of such nature that some local lawyers express doub: of success being had in the suit to enforce their payment. There are two of them, each for $10,000. If these bonds are not collected the receiver may find himself with no more money than needed to pay prefurred claims already allowed and the cost of winding up the ffairs of the bank, it is reported. Suit on the two surety bonds was started in the circuit court of Randolph County but upon application of the Fidelity and Casualty Company, and posting of proper bond, the cases have been transferred to the Northern Division of the Eastern Judicial District of Missouri, United States Court. Hunter
& Chamier of Moberly, and Philip Fowler of Kirksville represent the bank receiver in these suits and the law firm of Clark, Boggs & Peterson, of Columbia, represent the bonding company. The cases are set for an early hearing.
