The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-28
Bank Guaranty Battle Being
Waged liz Federal Court.
Injunction Argument Was Be-
gun This Afternoon.
OMAHA LAWYER HERE
j. l.. Webster, Who Fought
Guaranty in His State.
No Decision Likely Before To-
mOrreW-Status of Case.

! The most important legal battle SO
far in the Kansas bank guaranty
muddle started at o'clock this af-
ternoon in the federal court before
Judge Pollock. Bank Commissioner
]. n. Dolley, through his attorneys,
Attorney General Jackson. A. c.
Mitchell and G. H. Buckman, filed a
demurrer this afternoon, and it is
| over the demurrer that the fight is
taking place. Should the demurrer
/ be sustained by Judge Pollock the
application for a restraining order
| will be thrown out of court If 1t is
overruled the federal court will con-
tinue to retain jurisdiction in the
guaranty cases.
Both Sides Confident.
Both sides were confident of win
ming this morning. The attorneys for
the administration consider the out
come of the case in Kansas City last
Saturday a preliminary victory, and
are hopeful of winning a complete
victory today. The attorneys for the
national banks are just as confident
phatically that Judge Pollock passed
on any restraining order Saturday at
all except in regard to the Hutchln-
son bank, and that in winning that
point alone they scored great vic
tory.
The attorneys for both sides have
been in constant conference since
Monday morning. For long time
Monday afternoon and this morning,
the three attorneys for the bank
commissioner were closeted in the or
flee of Attorney General Jackson,
with a good portion of the state
library stacked in the corner of the
room, spending their time in getting
together and digging up precedents
and ammunition with which to hght
the big array of legal talent employed
by the national banks.
Loading Up on Law.
At the same time the attorneys for
the banks were lined up in corner
of the state library working just as
hard for ammunition with which to
sustain their side of the big con-
troversy.
Ex-senator Chester I. Long ar
rived in Topeka early Monday morn
ing and since that time has been nara
at work on the case. He has been IN
close touch with Gleed, Hunt &
Gleed who are also employed by the
national bankers.
Nebraska Lawyer Here.
Senator BailIie P. Waggener of
Atchison also arrived In Topeka this
morning to be present at the near
ing. which was postponed until =
o'clock this afternoon, In order TO al
low him to reach the city Ac-
companying Mr.. Waggener was j. l.:
Webster, a prominent attorney OF
omaha, who represented the national
bankers in the Nebraska guaranty
fight, which is similar to the one he1e tI1e
in Kansas. Judge Vandervoort OF the
federal court in Nebraska has
granted an injunction against the
bank guaranty bill, but has not as yet
written his opinion. The presence OF
Mr. Webster in the camp OF the .;EG oP-
has inspired the attorneys to greater
effort and a more versatile ateack
NAV be expected in the present hgnr
before Judge Pollock, ..,,s
for the national bankers. CONSISTING
Of ex-senator Long, State senator
Waggener, Mr.. Webster. and the firm
of Gleed, Hunt & Gleed: were
closeted in the ONCE OF rn@ idcu tions Il for
making their final preparations Aoi
the big battle this afternoon.
Waggener Makes Point.
Mr. Waggener, when seen by state
Journal reporter this mornllis, Mds
somewhat indignant over the report9
ners regarding the action of last sat
nrdav in the federal court at Kansas
Sitv in which the administrator
claimed to have gained a victory. On
the other hand Mr.. Waggener consloers
that the throwing the case INTO the
federal court and taking it from the
state supreme court is point IN their
favor.
1--WE are expecting the panK coHInls-
sioner to file a demurrer TINS aIter-
noon" said Mr.. Waggener, and We are
prepared to fight on those nneS- Inc
7Iinp OF a demurrer will throw the case
omen to arguments on its merits. If
the demurrer is sustained it means the
dismissal of our bills. In that case we
will carry the case on up to the United
states supreme court. If the demurrer
is overruled then the injunction would
issue, and the attorneys for the other
side would have to carry 1t on up TO
the supreme court
sAII this talk which as been going
through the morning papers regarding
the victory for the bank commissioner
is erroneous Judge Pollock has de-
cided that he has jurisdiction in the
case. and Attorney General Jackson has
agreed to withdraw his action in the
supreme court
POllOcIx'S Powers.
The real fight against the state guar
antv law was begun this Afternoon. A
temporary injunction by Judge Pollock
would tie up the administration of bank
guaranty until the United state court
could pass on the matter.
The restraining order issued by Judge
Pollock Saturday in the matter of the
Hutchinson bank case will also be
threshed out today and the effort made
to turn the order into an injunction.
If this effort is successful then one
stockholder of any state bank can keep
the bank out of the guaranty scheme
This is enc of the most important
points in the whole legal tangle of the
guaranty cases.
1t is expected that argument of this
case will not be finished before tomor-