The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-27
MAY Be FATAL.
Judge Pollock Holds That the
Objection
Of One StOckholder in a State
Bank
MAY BAR THAT BANK
From Participating in the Guar
anty Law.
This Ruling in Hutchinson Case
May Block the Law.
TO FEDERAL COURT.
Proceedings Are Removed From
The Supreme Court
And Will Be Heard by Pollock
Tuesday.
Injunction Proceedings Post
ponsd, Not Refused.
This Ruling in Hutchinson Case
May Block the Law.
TO FEDERAL COURT.
Proceedings Are Removed From
The Supreme Court
And Will Be Heard by Pollock
Tuesday.
Injunction Proceedings Post.
ponsd, Not Refused.

Judge Pollock appears to have de-
nvered a body blow at the state guar
anty law in his decision in the Hutch
inson case if he follows out his ruling
on the restraining order, applying 1t
to the injunction, for a bank can
hardly expect its stockholders to be
unanimous.
Only one of the three cases of ap-
plication for a restraining order in the
bank guaranty muddle was decided in
Judge Pollcck's federal court in Kansas
City Saturday evening, and that was
the mater of Frank S. Larabee,
stockholder in the Exchange State bank
of Hutchinson. The injunction restrain
ing this bank from taking part in the
guaranty scheme because of the oppo-
sition of one single stockholder was
granted.
The other two cases in the matter of
injunctions asked against the enforce
ment of the guaranty law in the mat
ter of state and of national banks was
not decided at all by Judge Pollock as
reported in the morning papers, Dut
the hearing was continued until to-
morrow, when it will be heard in the
federal court at Topeka.
Thus the guaranty fight has been ta-
ken out Of the supreme court entirely
and will be decided by the federal court.
When the agreement for continu-
ence to Tuesday was made, attorneys
for the banks demurred because of the
injunction suit pending in the supreme
court and set for today. Then Attorney
General Jackson agreed to defer the
supreme court suit until after the fed
eral court proceedings tomorrow;
How the report that Judge Pollock
had refused to grant the injunction
prayed for came to be circulated and
given credence in the morning papers is
a mystery.
Out of Supreme Court Altogether.
The attorneys for the national bank
ers are more confident today than ever
before and are feeling pretty good over /
the Saturday hearing before Judge Pol |
lock. They have the case in the fed |
eral courts and the attorney general, of /
his own accord, has withdrawn the ac- /
tion begun by him in the supreme
court.
1t is still possible that Judge Pollock
viii. in the hearing in federal court /
here tomorrow, tie up the enforcement /
of the guaranty law by injunction.
The argument in Judge Pollocks
court Saturday lasted all day and only
one of the three injunctions asked for
was passed upon. The decision in the
matter of the Hutchinson bank case is
q body blow to the guaranty law, in
that by the judges ruling, one stock
holder can prevent a bank from taking
part in he guaranty of deposits.
Larabee Decision May Be Fatal.
According to this decision there is
not likely to be found a state bank in
Kansas that will not have at least one
stockholder who will object to the
guaranty proposition, hence this de-
cision alone would tend to block the
law as effectually as a dozen injunc-
tions.
All the six lawyers in the case spent
the day in the rooms of the state Ii
brary looking up law points in antici-
patton of tomorrow's legal struggle in
federal court.
1t has been stated both by the
friends of the new law and by the law
itself that it took a majority of the
stockholders to keep the bank from
entering into the guaranty. In speak
ing of this Judge Pollock said:
$50 far as Larabee is concerned, if
his bank over his protest had taken
his money and is using it without an
rested until his rights are determined
for to deny him an order would be to
dismiss his bill of action
In discussing the applications of the
$50 national and Al state banks Judge
Pollock said that before one could
complain of law it would have to be
proved and shown that the operation
of the law was injurious He went on
to say that it was optional with the
banks whether they should take ad-
vantage of the guaranty law and he
did not Sc how the state bank com
missioner could drag the national
banks in under the provisions
According to Judge Pollock this ac-
ton would have little effect upon the
action in the state supreme court He
declared it was not optional with the
court to determine what cases he
could hear but that an action
properly brought in any court must
be determined by that court The I
Judge thought that there was no need
of a conflict between the United !
States court and the state supreme
court h
The plaintiffs in the cases being ]
heard by Judge Pollock are repre-
sented by ex-senator Chester 1. Long,
B. P. Waggener, ]. w. Gleed and
John L. Webster. Attorney General Z
Fred S. Jackson appears upon behalf
of the state and George Buckman
and Alex Mitchell represent the bank
commissioners.
jackson Says He Was NIisquoted.
Attorney General Jackson, when seen
today, said that he was misquoted in
the stories printed Sunday about the
case before Judge Pollock in Kansas
City, Kan
al did not say that the case was