The Dickinson press., 1909-01-23

Local Bank Questions Recent Ac-
tion of Commissioners in, Nam
ing Depositaries. The Law
to be Interpreted.
An important legal question has been
raised this week, and as result Judge
W. c. Crawford of :-the Tenth district,
will give a decision defining more
clearly the statutes relating to the au-
thority which the county commissioners
have in designating which banks shall
be the depositaries of the county money.
The action is brought in the name of the
Merchants National bank but would
benefit three other banks, the Dakota
National, Belfield State bank and Rich
ardton State bank.
The Merchants National bank of Dick
inson on Wednesday secured from Judge
Crawford writ of prohibition compell-
ing the county treasurer, John Riess-
beck. to appear in the judicial cham
bers February 6, to show cause why he
should not be prevented from depositing
the county money in the banks desig-
mated by the commissioners at their last
annual meeting two weeks ago. and
temporarily prohibiting him from de-
posting any money in these banks.
The action is brought on three
grounds, first that the law which states
that the county shall advertise for bids
and proposals from banks for deposita-
ries was disregarded; second, that the
commissioners exceeded their authority
in arbitrarily cutting off four of the
county banks from receiving any of the
county money; and third that the COM
missioners did not comply with the
statutes in that hey apportioned different
percentages Of the county money to the
different banks, whereas the law reads
that this is left to the county treasurer.
who shall deposit the money equally in
the banks designated.
At the annual meeting two weeks ago.,
Fthe commissioners gave the First Nation
al bank of Dickinson so per cent of the
funds, the Merchants State bank of
Richardton 20 per cent, the Taylor State
bank 20 per cent and the Gladstone
State bank 10 per cent. Representatives
Of the Merchants National and the
Dakota National banks were present and
made bids which were not accepted.
The section of the statutes on which
the plaintiffs base their claims is con-
tained in Section 2438 which says
when two OF more banks in the same
county. proposing to become deposit
cries, offer the same rate of interest, it
shall be the duty of the board to select
impartially as many of such banks as
offer ample security for such deposits.
In estimating the value Of the security
offered BY any proposed depositary,
the capital. surplus. and general credit
sidefation as well az the bonds proposed
to be given.
The plaintiffs claim that the COM
missioners acknowledged the securities
and bonds offered. as ample but gave
their decision on the ground that it
would mean too much bookkeeping.
Until the final decision is reached,
the depositaries designated by the COM
missioners in January 1907. remain in
effect, namely the First National. Dakota
National and Merchants National of
Dickinson. the Belfeld State bank and
the Richardton State bank.
If after the hearing which will be
held at 10 80 O'Clock February s. Judge
Crawford decides in favor of the plaintiff
banks. the county may appeal the case
to the supreme court, for the final decis-
ion. Likewise the plaintiffs may appeal
the decision is for the defendant. If the
final decision is in favor of the
plaintiff banks, the depositaries ap-
pointed in 1907 will hold good until
1910. as it is contended that the annual
meeting has passed and that the COM
missioners cannot follow out the law
until another annual meeting.
The lawyers for the plaintiff are W.
F. Burnett Of Dickinson and Ball,
Watson. Young & Lawrence Of Fargo.
In an interview with the PRESS Treas
urer John Riessbeck stated Wednesday,
shortly after the papers had been served
on him By Shelf Wiech. that he would
abide BY the contents Of the writ and
that It practically meant an injunction
from depositing any Of the county money
in any banks except those which were
made depositaries in 1907. He said
heSwas soins to lay the matter before
theEstate's attorney, N L Mcbride,
and that the case for the county would
besmanased under his direction.
The same question has come up in
other counties in the state. hut this Il
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