The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-14
.DOLLEY IS SUED.
Bank Commissioner Enj0ined I'm
Federal Court.
Prevented From Enforcing Kan
sas Guaranty Law.
CLAIM 1T is ILLEGAL
Violation of Constitution of the.
United States.
Discrimination Alleged i'm Favor
of Old Banks.
CLAIM 1T. is ILLEGAL

One hundred and forty-two nationa
banks and forty-one state banks of the
state of Kansas have filed suit in the
United States circuit court through
Clerk Sharrit today in which they ASK
for a temporary injunction against
Joseph n. Dolley, bank commission Oh
this state, and Mark Tulley, state
treasurer. restraining and enjoining
out the points in the new state bank
guaranty law
The suit claims in short:
That the bank guaranty law conflicts
with the fourteenth amendment Of the
constitution.
That II is contrary to the laws and
constitution of the state of Kansas.
That the state spends unlawfully the
money of the taxpayers of the state to
carry out so-called insurance scheme.
That there are no provisions of any
kind for the creation of guaranty
fund.
That there is no security for the de-
positors and no provisions by which
any them required to make any d.
posts with state treasurer.
That there are no provisions hyswhich
banks are TO submit to an assessment
for creation of bank guaranty fund.
That there is a discrimination against
the banks who have only been In bust
ness a year.
That there is discrimination against
banks paying more than three per cent
to depositors.
and makes the depositor believe he is
insured when he is not
That the law gives the state a right
to carry on an insurance business,
which is thus unconstitutional.
There are any number of other al
Legations in the suit which have been
mentioned before through the. press.
The suit today asks for an injunction
against the bank commissioner and
the state treasurer praying that a
temporary injunction be granted en-
Joining and restraining the officers of
the law from proceeding to act under
and enforce the said bank guaranty
law, also from receiving deposits of
bonds and money and from issuing
certificates to banks and levying as
sessments or enforcing any of the pro-
visions in the law. The complaintants
also ask that Dolley and Tulley be
enjoined from attempting to exercise
any powers and rights of the law.
The suit today was signed by Ches-
ter I. Long, John L. Hunt and J. w.
Gleed with B. P. Waggener and Jno.
l. Webster as counsels. c -
The surprise of theesuit is the num-
Der of state banks concerned. 1t has
always been believed that practically
all of the state banks in the state were
admitted under the new law. This
suit will reveal almost SO banks who
are DESTROYS of getting away from it.
The following state banks are in the
complaint:
Assaria State bank of Assaria; Citi-
zefYs bank of Axtell: Baileyville State
bank of Baileyville; First State bank Of
Bellaire; Citizens State bank of Cen
tralia; Citizens State bank of Cheney;
Coats State bank of Coats; State bank
OF Colwich; Cloud County bank of Con-
cordia; Danville State bank of DanVille;
state bank of Downs; Union State bank
of Downs; Faiun State bank of Falun:
Marion state bank of Florence; Ford
State bank of Ford; Citizens bank of