Great Falls weekly tribune., 1895-04-26
BANK DRAWS FIRST BLOOD,

BANK DBAwS FIRST BLOOD.
| Case Of the Northwestern National Ban X
Against County Treasurer Dicker-
man Virtually Decided.
A case of unusual interest and involv-
ing many new and intricate law points
was instituted about 10 days ago by the
North western National bank of this city,
through its attorneys, Mesers. Lyter e.
Greene, against County Treasurer Dick
erman to compel tho payment by him of
d warrant Issued to the bank by the
trustees OF school district No l, this
county, the warrant being given in the
sum of S15,S33.5G
This suit grew out of the sale to the
bank of the 1000 issue of school bonds
which the supreme court declared inval-
id. Prior to the decision of the supreme
court the bank had advanced to the
board the money represented by the
warrant which the bank seeks to have
paid, and the board had used this money
in the partial erection of the high school
building. Before the bank advanced
this money it procured contract from
the school board providing in substance
that should the supreme court hold the
bonds invalid, then the board would re.
pay the money so advanced. 1t WAS un-
der these conditions that the bank fur
nished the sum sued for. 1t was vr-
tually loan from the bank to the school
district.
The first Issue of bonds being void. the
school board held an election at which
they were authorized by vote of the dis
trict to issue bonds in the sum of $780,
900. 1t was on the funds raised by the
board from the sale of the last bonds
that the board drew it's warrant in fa-
vor of the bank.
When the bank presented it's warrant
to the county treasurer that official re-
fused to pay the warrant, claiming that
the school board had no authority to is-
sue it and that his bondsmen had re.
quested him to not pay it if presented.
The bank promptly instituted its suit
to compel the county treasurer to pay
the claim. The court ordered the treas
urer to either pay the warrant or show
cause why he should not do SO, and fixed
a time when he should be heard by the
court.
At the appointed time the treasurer
was on hand with his attorney. A. j.
Shores. and filed an answer eettitg up
several defenses, claiming, among otA er
things, that the warrant was not regular
on its face, that the school board had 40
authority whatever for issuing the war
rant, that the act of thn Legislature g!y-
ing school districts authority to pay such
demands Was clearly unconstitutional
and that the payment Of THE claim was
tatamount tC a Jopation to the bank by
the board OF that sum Of money.
The attorneys for the bank moved TO
strike cut most uf this answer, claiming
that the matters alleged IN the answer
constituted no defense or reason why
the warrant should not be paid. This
motion went 10 the vital points in the
case and . hearing was ordered on it
by the court. At the hearing. which
came up the ilth INST. both parties ap-
peared and IA stubborn legal fight was
made by both sides. Every question
was ably and elaboratelv argued pro and
con, the arguments consuming whole
day.
At the conclusion of the arguments,
the court announced that it would take
the case under advisement it being one
of considerable magnitude and involv-
I'M CT ms ri - In
Yesterday Judge Benton filed a
lengthy opinion in the case, in which he
sustained the position taken by the at
answer of the treasurer. This case is
one OF Importance to the district as it
will determine whether the school fund
is or is not to be diminished by that
amount.
The whole bar of the city has mani
tested much interest in the result of the
suit on account of the intricate legal
points involved.
Just what action, if any. the county
treasurer will now take is not known,
but it is probable that he will appeal
from the decision of Judge Benton to
the supreme court.
10 TRIBUNE reporter one of the at
torneys for the bank today said: 1--WE
have virtually won our case in tho dis
trict court. Every point that could be
raised by the attorney for the treasurer
was zealously urged by him at the hear
ing. There now remains but little to be
done in the case 10 secure a final judg.
ment in the district court in favor of the
bank. Whether the treasurer will be
content to let the matter rect with
final decision here, do not know; but in
any event we have no fears of eventually
winning the case, even though it should
be taken to the supreme court. do not
care to discuss the probable reasons
which actuated Mr.. Dickerman in max
ing the fight he has against the allow
ance of this most just and equitable
claim. Were you to rake this school
district with fne-tooth comb you
would not lind dozen persons who
would urge the slightest objection to the
payment OF this warrant, which fact
would indicate that the claim is just
one and it ought to be paid.
Weekly Bank StateIneDt,