Omaha daily bee., 1909-07-01
States Attorneys Are Given Twenty
Days to File Brief.
BANKS HAVE TEN DAYS TO REPLY
Case Then to Be Disposed of on. Its
Merits.
MAY LOSE JOBS
Old Board and Employees WIN Com
tinue to Perform Duties--List
of Men who May Re
Affected.
CFrom a staff Correspondent

LINCOLN July 1--(Special members
OF the State Banking board and the secre-
tary TO the hoard have been temporarily
enjoined from putting into effect the new
banking law enacted by the late legisla-
ture.
The temporary Injunction was issued
by Judge Van Deventer Of the circuit
court of appeals and Judge T. G. Munger
OF the federal court this morning. following
a two days hearing on the application.
The attorneys for the state were given
twenty days In which 20 file briefs in op-
position to the application TO mako the In
junction permanent and the attorneys for
the plaintiff ten days after that in which
to reply,
The application for the injunction was
made by fifty-two state and private banks.
represented by John l.. Webster and w. V
Allen, while the state was represented by
Judge 1. L. Albert OF Columbus and c. o.
Whedon Of Lincoln. Attorney General
Thompson advised with the latter two but
made no oral argument in the case.
Examiners May Lose Jobs.
The new banking law which has been en-
Joined created a banking board composed
of the governor, the auditor and the at.
torney general the governor taking the
place of the state treasurer, who was q
member of the board under the old law.
Under the new law the governor was given
power to make all the appointments and
he had already appointed Samuel Patter-
son, secretary, and seven examiners. These
persons would have assumed their offices
on the morning of July 2 had the injunc-
| ton been denied. As It is the old secre-
tary, e. Royse, and the present examiners
will hold on until the case is settled.
In addition to Samuel Patterson, who,
at least for the present, will not take his
| job, the following examiners appointed by
Governor Shallenberger will not connect
with the state pay box unless the perma-
nent injunction is denied: Charles u.
| O'Malley, Omaha; Fl. P. DowlIng, Grand
Island e. II. Luikhart. Cedar Rapids;
Floyd Cobolt. LinoolnI L. H. Tate. omaha.
c. w. Erwin and C. II. Beaumont. who
were examiners under the old law, were
reappointed by Governor shalienberEer un-
der the new law, but they will not be
affected Treasurer Brian is opposed TO
giving a place to any examiner who ac-
cepted an appointment at the hands OF
the democratic governor. but the attorney
general and the state auditor have no in
tention of disturbing the examiners with
two commissions
The legislature which enacted the new
law also appropriated $1,000 year or 81, 900
increase for the secretary to the board. and
this salary will be drawn by Mr.. Royse.
pending the final disposition OF the suit
and the salary OF the chief clerk was
increased $500 and the salary of the stenog-
rapher $500 year
History of New Law.
The new law was the result OF weeks of
toll by a special committee composed OF
members of the senate and house OF the
bill for some weeks. the committee asked
for permission to employ counsel TO draft
the measure, Mr.. Bryan having left the
state without doing IT, and l. L. Albert
OF Columbus was employed. Judge Albert
drafted bill which In all particulars did
not suit the committee, and the Albert
draft was materially changed.
When the attorney general was consulted
he advised that the guaranty section pro-
vide that the banks may either give q
guaranty bond or contribute 70 q fund
for the guaranty OF the deposits. This
advice was ignored and the commlttes
drafted its compulsory guaranty section
which was upon the one point more than
any other that the opponents OF the law
made their most objections,
At this time there are 66l banks char
tered 10 do business in Nebraska as state
institutions. of which fifty-three have been
chartered since January 1. Fourteen banks
were chartered In June.