Poweshiek County v. Merchants National Bank of Grinnell

I. The receiver petitioned for removal to the Federal court on the ground that the suit involved “matter of the distribution of the assets of a national bank, and is, in effect, one to establish a preference contrary to Federal law-” Removal was denied. Plaintiff’s petition alleges that $19,889.93 of the public funds of the plaintiff was deposited in the defunct bank by plaintiff’s treasurer, and that the deposits were unlawful, in that no bond to secure plaintiff against loss on account of them was furnished, as required by statute; that the bank received and held the funds as trustee, and…