In a meeting of the creditors of the firm Josef A. Cerny, held in the Sokol Chicago hall last Friday, it became evident that federal court action will be required to settle a case which threatens to become another bankruptcy within the Chicago Czech community. It was thought at first that compromises could avert the impending calamity. Such hopes seem to have been blasted. It is reported that tomorrow Attorney Otto Kerner, representing the creditors, will ask the federal court to pronounce the company in a state of bankruptcy. This was the first sad news to reach the community.

Another is the rumor that the deficit will be much larger than was originally expected.....Several complaints charging fraudulent handling of funds have been heard, but no official information has been filed as yet.