The Chariton Leader, Chariton, Iowa
Thursday, July 23, 1908
'Is A Twenty Page Legal Document':
This bill of complaint covers about twenty pages of type written manuscript
and the defendants are James H. Jamison, receiver of the defunct bank, and
Lawrence O. Murray, comptroller of the currency. It is addressed "To the
Honorable, the Judges of the Circuit Court of the United States, in and for
the southern District of Iowa." Their contention is set out in many
specifications, reciting the history of the bank and all the transactions
between it and the order. Among them that for years the First National Bank
had been a depository for Woodmen funds and covered the $350,000 in question
holding that it was a deposit and should not have been thrown out by order
On August 2, 1905, $200,000 was deposited; Sept. 6, 1906, $50,000; February
2, 1907, $75,000; March 27, 1907, $75,000.
On the 27th day of Sept. 1906, $50,000 was withdrawn -- leaving the amount
now in question.
The document recites the petition of G.J. Stewart and others to have the
decision of the comptroller reversed, which was recently done, claiming that
it was irregular; that McNider should have been given notice so he could
have presented proofs, etc.; that this was acting without discretion and
hearing to disallow the claim, without authority and jurisdiction, and is
void and of no effect.
In the eighth specification it recites that in the year 1895, at the time
the First National Bank was selected as the depository of these funds, the
bank was insolvent, and had been for many years "and its business was being
conducted by its directors and managing officers unlawfully, and by
concealment of true condition of affairs,: and that the sureties on bond to
secure deposit deny that they signed and executed bond, claiming forgery,
and no liability. That the manager had full knowledge of all affairs of
bank and these signatures, and this fraud. And that the other officers and
directors of said bank were in a position to know, and ought to have known
condition of said bank, and in not doing so fraudulently concealed its true
condition, insolvency and fraudulent management, and thus plaintiff was
induced to deposit these funds."
In the eleventh section it is claimed that owing to these reasons the
Woodmen Lodge should have a lien on the assets of the bank etc.
And thus the document goes on and asks credit for $350,000 and interest from
time of failure.
$70,755.49 is asked to be set out as a preferred credit, reciting that
certain transactions would entitle it to that consideration.
The document denies the forgery of the bond to secure the funds.
The signatures to the bond, indemnifying the receiver against costs of suit
should the contention go against the depositors, is signed by G.J. Stewart,
G.W. Larimer, Rex Bonnett, N.G. Lutz, Chas. Mark, L.H. Busselle, G.F.
Carpenter, F.P. Wright, J.V. Bonnett, J.A. Brown, Geo. E. Demming, B.R. Van
Dyke, Chandler Bros., C.E. Noble, H.J. Steinbaugh, J.S. Miller.
Copied by Nancee(McMurtrey)Seifert
March 21, 2005