The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-06-23
NOW he IS SUED.
Attorney General Faces Manda-
mus Suit in Bank Case.
He Voted to Grant Charter to
Abilene Central.
LAW TO BE TESTED.
Find If Charter Board Can Shut
Out Banks.
Board Will Hire a Lawyer to
Make Defense.
LAW TO BE TESTED.

John S. Dawson, attorney general for
| the state of Kansas, faced a complex
situation today when a writ of manda-
mus was filed in the supreme court by
the Central State bank OF Abilene to
compel the state charter board, of
which Dawson is a member, to grant
! a charter to the bank to do business
| in the state. At the charter board
meeting this week Dawson voted to
give the bank a charter. The other two
members OF the charter board, Bank
Commissioner Dolley and Secretary of
| State Sessions, voted no on PROPOSE
! ton to grant the bank g. charter. Now
Dawson who voted to give the bank
charter, is called upon to withstand
the application for the mandamus writ
Dawson refuses to stay out on a limb,
and today he filed his answ er to the
mandamus writ agreeing % all the al
| legations in the writ and grating again
| his position in favor Of the charter.
| The charter hoard will have to hire
lawyer to defend it in this suit.
Mr.. Dawson, as member OF the
| charter board is sued for refusing to
give the Abilene bank charter. Mr..
| Dawson voted individually in favor Of
| the charter. Mr. Dawson as attorney
general is called upon to oppose the
banks legal demand for a charter It
| is a paradox.
The. other two members of the charter
| board acted under the provisions of the
/ 1911 statute which grants tC the board
discretionary powers in the granting OF
charters. They took the ground that
/ Abilene already had three banks. They
/ granted a charter to a fourth but drew
| the line at a fifth which was the Cen
| trail State bank, plaintiff IN this man
damus suit.
The trial of the case will test the
Iconstitutionality of the 1911 law. Mr..
Dawson today stated his position in
the matter as follows: s'It is my opin-
ion that the refusal of the charter
board to grant the charter denies to
all citizens within the state of KAN
Sas the equal protection of the laws
warranted by the fourte enth amend
ment and sets at naught the state con-
Institutional provision that corporations
may be formed under general laws,
land that the state charter board must
grant charter when application is
made in good faith and in due form. >
| Charles Sessions, secretary of state,
said today that he would see the mat
ter through and would hire an outside
lawyer if the attorney general de-
lcIined to defend the board in the man
idamus suit 81 take the ground said
Mr.. Sessions, that the law giving the
board discretionary powers IN this
matter ought to be tested, and this is
as good case as any that is apt to
come up in which to test it. If the
board has these powers it ought to use
them in the case where town has
too many banks already If the law is
mot constitutional, then the board has
no desire to refuse a charter to any
Incorporation complying with the gen
!. eraI laws"
Secretary Sessions Position.
At the time he cast his vote in the
negative on the application of the Cen
trail State bank of Abilene for a char
tier. Mr.. Sessions gave his reasons as
follows:
THE legislature of 1911 passed a law
| giving the charter board discretionary
power in regard to granting bank char
ters Whether good or bad, whether
we like it or dislike it, it is the law
and it will continue to be the law until
set aside by the courts or repealed by
the legislature. AS long as II is the
/ law propose to exercise my own judg-
ment in granting bank charters and
know that the rest of the members
feel the same way.
1.-Two sets of men are asking fol
charters from Abilene. This brings Up
the first controversy under this new
law Innumerable controversies will
likely arise, until some aggrieved party
succeeds in knocking out the law.
abilene now has three banks, one
Of which is a guaranteed state bank.
Both parties by inference, if not by
direct statement, admit that there is
not room for five banks. The bank
commissioner says he has investigated
I A4O~
room for over four banks and that the
fourth bank is not an absolute neces-
sity The history of banking In Abb
lene shows that fourth bank has gone
to the bad. In my judgment this is
not the propitious time for the starting
of the fourth or fifth bank in Abilene
or other towns in Kansas which has
only been able to support three banks
in the past. This charter board, il
these unsettled times, should be mighty
l fsVI in,
tend in the least to further disturb The
banking or financial conditions of thi:
state. The tendency everywhere. ex
cept in Kansas. during the past tive
or three years, has been to consoli
date and strengthen banks rather thai
scatter and weaken them
THE parties to both applications ar
good honorable men and 1 believe ar
asking for the charters in good faltl
but l think that the wreclxage CT th'
last failed bank at Abilene should b
cleared away before any new banks ar
established. Therefore I will vote NJ