Conservator of Covington Bank seeks to settle claims; Hemingray Loan to be paid

Conservator for Covington

Bank Seeks to Settle Claims

Payment of $70,000 Loan to First National Also

Looms, According to Reports

One of the latest developments in preparations for ultimate reopening of the First National Bank & Trust Co., Covington, was the filing of a petition late Tuesday by Ben A. Adams, conservator, seeking an order in Kenton Circuit Court which would permit him to compromise a claim against the Lockett-Tate Co., Covington.

Another development was the report that a $70,000 loan made by the bank to the Hemingway [sic] Hemingray Glass Co., Muncie, Ind., may be paid.

Mr. Adams, in his petition, asks permission to sign a petition under which C. B. Tate seeks to take over assets of the Lockett-Tate Co.

Owes $9666

Mr. Adams points out the com­pany owes the bank $9666. He says the company is operated by a re­ceiver, and is indebted in the sum of $61,122, actual value of assets be­ing doubtful.

Expressing the opinion that the liquidation of the company would yield no more than 20 per cent to creditors, Mr. Adams seeks to join other creditors in sanctioning a set­tlement proposed by T. B. Tate.

Mr. Adams said that Mr. Tate has proposed to purchase assets of the company for $14,500. The money would be distributed pro rata in full payment of respective claims.

Would Waive Claims

T. B. Tate and J. Waller Tate would waive claims in the sum of $11,759.58 against the company in case of sale.

Mr. Adams would not verify ru­mors that payment of a $70,000 loan may be made by the Hemingway [sic] Hemingray Glass Co., formerly a Covington in­dustry. The amount was charged off in a report made recently by federal bank examiners to the comptroller of the currency.

Properties of the Hemingway [sic] Hemingray Co. have been reported taken over by the Libby-Owens Glass Co., New York, in which case the local bank may be paid in full.