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SETTLEMENT IS MADE, WINSIDE BANK MATTER
PREFERENCE CASE AGAINST LOUIS C. MITTLESTADT IS ENDED
$2,321.20 CLAIM ALLOWED
Stipulation Sets Forth That Norfolkan Had No Intention to Secure Preference and No Knowledge of Bank's Condition
The first settlement in nine preference cases recently filed by E. H. Luikart, in charge of the defunct Citizens State bank of Winside, against officers and customers of the institution, was effected in district court of Wayne county yesterday before Judge Clinton Chase.
The case was settled when the court decreed that Louis C. Mittelstadt, Norfolk, pay to the plaintiff $667.75; that he deliver to the receiver the $2,238 note of James C. Jensen, and that there be allowed against the receiver and the assets of the bank Mittelstadt's claim in the sum of $2,321.20.
In the stipulation it was pointed out that prior to Aug. 25, 1932, Mittelstadt was a depositor in the bank and owned a certificate in the sum of $2,500. At that time the certificate was due, and previously Mittelstadt had informed the bank that he wanted his money, the stipulation states.
Gave Note In Payment
On Aug. 25, 1932, the court was informed, the bank paid Mittelstadt for the certificate of deposit using as a part of the payment the promissory note of Jensen, on which had accrued interest in the sum of $36.82, the principal and interest amounting to $2,275.72.
The stipulation further sets forth that at the time of the transaction Mittelstadt had "no knowledge of the financial condition of the bank, had no information which would cause him to believe that its capital had been impaired and that in the transaction he had no intention to secure a preference or to lawfully deprive other creditors of their proper share of the bank's assets and securities."
It also states that Mittelstadt "had no intention to appropriate to his own use and benefit the said note as against the proper interests of any other depositors in the bank."
Made Income Tax Report
Believing the interest he collected upon the note was his, and having no knowledge that it was questioned in any manner, Mittelstadt reported it to the federal government for income taxes, the stipulation states.
In the stipulation Mittelstadt stated he was ready to pay to the receiver the sum of $667.75, which he collected on the note, and deliver to the receiver Jensen's new note.
Other defendants in the case were James C. Jensen, Arthur H. Schmale, Julius C. Schmode and Gottlief C. Haller, the last three being officers of the bank.
Frank Warner, Norfolk, attorney for Luikart, was in court when the case was settled.