Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-10-14
BANKING BOARD
CASE TO COME
UP TOMORROW
Arguments on Making In
junction Against Board
Permanent to be Heard.

Permanent to be Heard.
Fargo, n. D., Oct. 14.-The North
Dakota supreme court will tomorrow
hear arguments on the question of
making permanent the injunction that
it has issued against the North Da-
kota banking board, under which the
board members were restrained from
taking action of any nature whatso-
ever in connection with the closing of
the Scandinavian-Am bank of
Fargo.
Since the injunction was granted, o.
=. Lofthus. state bank examiner, has
been in charge of the bank. Attor-
neys for the Nonpartisan League and
various league subsidiaries have had
free sway in the institution, that to ali
intents and purpose the bank in
reality has been in possession of the
Nonpartisan League.
Unusual PROCEEDINGS.
The proceedings that will be heard
at Bismarck tomorrow are Unusual
Under the injunction granted by the
supreme court week ago, the cleo
tive officers who are charged by law
with the duty of supervising the banks
of the state have been bereft Of all
ou1 Lty anu powers 80 1Ar aS tHe
closed Fargo institution is concerned,
and an appointee state official has
been substituted for them.
That the question of issuing the
temporary injunction was decidedly
close is evidenced by the fact that the
courts minutes disclose q three to two
division; three justices favored the in
nnas junction; and two Justices wsre. op- 'l
justices Bronson, Grace ;andsRobin-
son. the three court mem bers who ap9
proved the granting of the temporary
injunction, were all elected as Nom
partisan League candidates, Justices
Grace and Robinson were elected
three years ago. and Justice Bronson
! was elected a year ago.. Justice Rob-
fnson is former Fargo man: Justice
Grace formerly resided at Mohall and
| Justice Bronson is a former Grand
Forks man, former state senator,
and former assistant to the attorney
general.
Chief Justice A. NJ Christianson,
and Justice Birdzell, opposed grant
ing the temporary injunction, accord
ing to the minutes of the court. JUS
tce Christianson was elected five
years ago, prior to the time the Nom
tice Birdzell was elected three years
ago with the endorsement of the
league. ....
! Arguments before the supreme
court tomorrow will be made on the
Motion of the officers Of the banking
board for the dissolution of the injunc-
ton. At the time the injunction was
temporarily granted, attorneys for tho
| banking board members were not
heard by the court The only attor-
neys heard at that time were the coun-
sci for the REALTORS, who were the state
bank examiner o. E. Lofthus, and the
omcers and directors of the closed
bank, who have made common cause
against the banking board.
:. The Banking System.
| To understand fully the lineup
that has developed one needs to study
the system under which the banks of
the state are governed. They are su-
pervised by the state banking board,
Of which the governor. secretary Of
state and the attorney general are the
is also secretary of the banking board,
is appointed by the governor.
In handling the Fargo bank issue,
Governor Frazier and the bank ex-
amtner, Mr.. Lofthus, have cast their
lot with the officers of the Fargo bank.
Attorney General William LANCER and
Secretary of State Thomas Hall, ma
l
who ordered the institution closed.
have been supported in their position
that the Fargo bank is insolvent by
the two deputy bank examiners who
reported to the banking board that
the institution was not solvent. They
are p. e. Hallderson and o. E. Enge-
moen. deputies appointed by the
present administration, and who are
under the direction of Examiner
81 + 81 =
The state bank examiner is for
meF resident of Kloten, N. D.. where
he was engaged in banking. Mr..
Lofthus Is q socialist.
What The Law Says
| The state law delegating to the
banking board powers to supervise
the state banks is interesting at this
time in view Of the action of the SUI
preme court in enjoining the members
thereof from acting in any capacity in
connection with the closed Fargo
bank.
The powers and duties Of the board
are set forth In section 514S, OF the
code OF 1913, az follows:
There 10 hereby created a depart
ment of banking which shall have
charge OF the execution of all laws
relating TO state banks, trust COM
/ panies, building and loan associations
mutual investment corporations, mu-
tuAl savings corporations and other 1n-
/ after organized or doing business UNI
der the laws Of the state Of North Da-
kota, and engaged wholly or In; part
In receiving Of deposits or the selling
OF their certificates Of indebtedness or
other obliGat ions TO the public. Snch
EdepA Artment shall hA2 designated ~ thu
/ f'dspastmentt VI haIking' and Il shall
y