The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-10-31
STATE SUPREME C0URTRULES
THAT CLOSED BANK IS SOLVENT
Action of LANCER and Aids Declared Illegal and Costs of
Entire Case Assessed Against Them-Farners'
Paper Ruled Good-Bank Opens.

The Scandinavian-American bank
was declared solvent, the total costs
incurred by LANCER and his aids in
raiding this institution were levied
{: against the raiders and the acts con-
snected with the bank closing were
oAndemned and declard illegal by the
North Dakota Supreme Court Friday.
Full power to deal with the closed
bank was restored to State Bank
Examiner 0. E. Lofthus.
BANK OPENS
AS a result of these decisions the
closed bank opened it's doors for busi-
ness at 1895 Saturday morning.
The opinion was written by Justice
Bronson. Justices Grace and Robin
son concurred, Justices Christianson
and Birdzell dissented. The court
held that:
The bank was solvent and should
not have been closed.
Postdated checks are negotiable
instrumnts, blasting LANCER and
Halls pretentions.
The statement Of LANCER and Hall
that farmers notes are worth only
SO per cent of their total amount and
that postdated checks are not COL
lateral at all and of no substantial
value is a determination holding ar
bitrary and without foundation in
fact"
The state banking board does not
possess the power of appointing a
receiver for bank.
CLOSING ILLEGAL
The banking board cannot deter
mine bank insolvent or cause it to
be closed without the knowledge and
consent of the bank examiner.
The action of LANCER and Hall
"was unwarranted, illegal and Meth
er was in the spirit nor the letter of
= the legal powers conferred upon
them, and it both merits and receives
the condemnation of this court.
But probably the greatest blow of
the decision to LANCER and Hall was
the order of the court that all costs
and expenses incurred by the bank
in fighting the action should be paid
by the Attorney General to secretary
of state, and the other respondents,
including P. E. Halldorson, their
pretended receiver and Assistant At
torney-G General Sheets.
NO MINORITY REPORT
Justices Christianson and Birdzell
did not write an opinion and reserved
the right to express their views lat
ter. This is the second time in
case of vast Importance that Justice
Christianson has Preserved" the right
to express his opinion later. He de-
INJURED at the decision in the case
regarding the constitutional amend
ments and sevral months later
wrote a political opinion on the
farmers legislature and the amend
ments after they had become law.
HALLDORSON WENT ASTRAY
The court poined out that Halldor-
son had been authorized to examine
another bank in Fargo and not the
Scandinavian American. Referring
to the wording of the letter ordering
Halldorson to make the examination,
the court commented on the proce-
dure of LANCER and Hall as follows:
"This resolution and this letter
would appear on it's face as an at
tempt indirectly and by subterfuge
to secure the consent of the state ex-
aminer to examine all Of the banks
in Fargo so that thereby initiative
action might be taken against the re-
!ator banks as it was taken. 1t there
fore follows that the action of the
Majority of the state banking hoard
was illegal and unauthorized. Even
though it should be conceded that
the board did possess the power to
close the bank and appoint receiver,