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COUNTY TO SUE THREE BANKS FOR $262,000 Martin Reveals Plan After Board of Finance Asks Legal Steps. DELAY ACTION IN TWO CASES American Trust, Toth State and Franklin Institutions to be Targets. County Attorney Alfred E. Martin announced to-day that suits will filed in the county courts immediately to collect $262,000 in public funds tied up in the closing of three South Bend banks. The announcement of the county attorney followed special meeting of the county board of finance late Monday at which resolution was adopted calling for force the funds, part of which have tied up for two years. The county has total of about in public tied up in five closed banks of the county but the suits for recovery will be filed against only The fourth bank has started payment of the county deposits and the board finance is awaiting word from the auditor before beginning tion against the fifth institution the fact that $60,000 in state funds is on deposit in bank Priority in Doubt. The court action to recover the county's deposits is liable to fraught with legal entanglements, however. because of matter before the state supreme court regards to claims in the stances bank The matwas carried to the high court six ago to termine public funds have priority after banking institution. No ruling has been handed down on the question and bank receivers throughout the state withholding the payments of any pending the decision. The banks against which the action will be started are the American Trust company, now in the process of reorganization. the Toth State bank and the Franklin Trust are operating for the Toth State and Franklin Trust and the county's funds in both are surety bonds signed by former officials of the the Toth State bank closed the county had $28,000 on deposit there and yesterday's meeting of the board finance several former bank officials who signed the surety bonds held by the county auditor appeared and said they were unable to make reimbursement from the liquidated Cash Reported on Hand. When the Franklin Trust company nearly years ago on orders of the state banking department the county had approximately $50,000 on deposit but the receiver recently paid dividend of $6,000 the county reducing the total $44,000. The former officials of the bank who were on Franklin Trust personal sureties have appeared before the board of finance on several stated that attempt was being made to raise county money from liquidation. It was reported to-day, however, that the receiver of the Franklin Trust company has considerable cash on hand but refuses to make any pending ruling on the question before the supreme court. The largest of the three suits will be against the American Trust company and the United States Fidelity Finance company bonders of the $190,000 in county funds on deposit there. Of the $90,000 protected by collateral bonds held by Continued on Page Two. Column Two.