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PARSONS WINS IN SUIT FOR $30,000 TAKEN BY OFFICIAL Court Rules Bonding Company Liable in Shortage of Treasurer. PARSONS, KAS., Sept. 6.—(Special)—This municipality today emerged victorious in a four-year litigation in which the city sought to collect more than $30,000 lost through manipulations of W. W. Cavanagh, invalided banker and for twenty years city treasurer, who committed suicide July 20, 1926, a few days after the shortage was discovered in his accounts. The city government filed suit in district court to collect its losses from Cavanagh's bonding company, the Fidelity Title and Dospit company of Baltimore. The suit later was transferred to the federal court where Judge John C. Pollock assumed jurisdiction. Judge Pollock's decision was against the city. It was held that city had not met its own responsibility by having regular audits made of the treasurer's accounts. City Pushes Fight. The city continued its legal battle and appealed to the United States circuit court of appeals. That court's decision, made public today, reversed Judge Pollock's verdict. The circuit court of appeals decided that the bonding company must pay the city the $30,000 loss plus interest. Cavanagh was under $50,000. Cavanagh for years was probably the most pathetic figure in Parsons as well as one of the most respected. Administrations came and passed through the city hall but always the paralyzed bank cashier remained city treasurer with never a question of his integrity. Treasurer Was Invalid. For the last twenty years of his life Cavanagh virtually was carried to his desk in the Parsons State bank by a devoted son, who worked in the institution. When the city treasurer took his own life the fact was kept secret for several days on the advice of business leaders of the town to avoid a run on the State bank, due to the fear of a misunderstanding that any shortage in the city's accounts would have to be borne by the institution. T. M. Flynn, president of the bank, spent anxious hours as the community suffered from uncalled for hysteria, but the bank emerged from the crisis after mobilizing its assets and bearing out its name as one of the strongest institutions in the state.