The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1912-12-02
WILL GIVE COMMISSION
. POWER TO PROTECT FARMERS
Decision of the Supreme Court in Regard to Bonding EevatOr
Men, Gives Commission Sweeping Authority
to Investigate Surety Business

chester at Bismarck, to prohibit the
commission from CanCelling these
bonds.
The position the bonding company
took, was, that it was authorized to
write these bonds by the insurance
commission, and had an absolute
right to write them, and the railroad
commission vas only a ministerial
body which could ascertain if the
bonds were properly executed, and If
they were they had to approve them
whether they wanted to- or not, and
that it was none Of their business
what kind of settlements the bonding
company afterwards made with the
ticket holders, and they could not on
eel the bonds so long as the bonding
company was solvent.
The railroad commission Contended
that under the law it was their duty
to prevent fraud and oppression in the
grain trade and that If the bonding
Company's business methods tended
to oppression and fraud they had a
right to cancel the bond. In this Case
that hardship and oppression had been
inflicted on the poo farmers at
Turtle Lake; that the very purpose
of requiring a bond Of KittIer,> or
any other elevator, was to prevent
just this sort of thing, and if there
was no way to insist upon prompt and
satisfactory settlements of such losses
there might as we'll be no bonds.
Judge Winchester decided in favor of
the bonding company and prohibited
the commissioners from CanCeling the
bonds n the commission appealed to
the supreme court.
In the supreme court the case was
entitled, the state of North Dakota, ex
rel Dakota Trust Co, plaintiff and re-
CnNr1nnt We w II Cf1trErnn- Z ID
N. Anderson and w. H. Mann, as
commissioner of railroads of the state
of North Dakota, and the board of
railroad commissioners Of h state of
NORTH Dakota, defendants and appel
lants.
Pres. w. H. stuusman Ur the COM
mission. assisted the attorney gGner-
ais office, and prepared the brief m
the case ana made the oral argument
on behalf of the commission, and
Hon. Edward Engerud of Fargo rep
resented the trust company.
The decision Of the supreme court
sustains the railroad commissioners
contentious on every point. 1t holds
that under the law referred to the
board may examine into the suffici-
enCy of elevator bonds, both as to the
form and the general business conduct
and the liability of the suretees and
LOI lllS puIp CAL SuIIlIlOH VIII
nesses before them, and whenever it
it dissatisfied with the good faith or
business method of the surety, though
1t can not summon the bonding COM
pany before it and threaten it with
a cancellation of it's bonds, yet it can
require the elevator company to pro-
duce new bonds and in the perform
ance of these duties the board acts
in a quasi judicial capacity, and can
not be controlled in the exercise of
it's discretion by mandamus or prohi-
bition, and further, that the fact that
the insurance commissioner gives the
company a license to do business does
not compel the commission to approve
its bonds.
It so happened that before the case
was reached for trial in the supreme
court the bonds that were going to
be cancelled expired anyhow and the