The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1919-10-31
COURT HOLDS THAT
BANK IS SOLVENT

BANK IS SOLVENT !
The Scandinavian-Ameri bank
was declared solvent, the totaP costs
incurred by LANCER and his aids in
raiding this institution were levied
against the raiders and the acts con-
nected with the bank closing were
condemned and declared illegal by
: the North Dakota supreme court
Friday Full power to deal with
the closed bank was restored to State
Bank Examiner o. E. Lofthus.
Bank Opens
AS a result of these decisions the
closed bank opened it's doris for busi-
ness at 1885 Saturday morning.
The opinion was written by JUS
tice Bronson. Justices Grace and
Robinson concurred, 1ustices Christ
: hanson and Birdzell dissented. The
court held that:
The bank was solvent and should
not have been closeu.
Rostdated checks are negotiable
instruments, blasting Lar1ger and
Halls pretentions. ~.
The statement of LANCER and Hall
"that farmers notes are worth only
so per cent, of their total amount
and that post dated checks are
not collateral at all and of no sub
stantial value is a determination
holding arbitrary and without foun-
dation in fact" '..E
The state banking board does not
possess the power Of appointing a
receiver for a bank. ti
Closing Illegal
The banking board cannot deter
mine a bank insolvent or cause it to
be closed without the knowledge,
The action of LANCER and Hall twas
unwarranted, illegal and neither
was in the spirit nor the letter of
the legal powers conferred upon
them, and it both merits and re-
ceives the condemnation of this
court.
But probably the greatest blow of
the decision to,,Langer 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, the
secretary Of state. and other re-
spondents, Including P. E. Halldor-
son. their pretended receiver and
Assistant Attorney General Sheets:
2. NossMinority Report.
2As Justices ChriStianson and BirdzelI
did not write an opinion and Sre-
served the right to express their
views later. This IS the second
time in q case of vast Importance
that Justice Christensen has ere
served" the right to express his
opinion later: He, demurred at
the decision in the case regarding
the constitutional amendments, and
several months later wrote poll
tical opinion on the farmers legisla-
ture and the amendments after they
had become ,1aw.
Halldorson Went Astray
The court pointed out that Hall
anime another bank in Fargo and
not the 'Scandinavian-American. Re-
ferring to the wording of the letter
ordering Halldorson to make the ex-
animation, the court commented on
the procedure of LANCER and Hall
as follows:
."This resolution and this letter
would appear on its face as an at
tempt indirectly and by subterfuge
to secure the consent of the state
examiner to examine all of the
banks In Fargo SO that thereby In
{ itiative action might be taken
against the relator banks as It was
taken. 1t therefore follows that
the action of the majority of the
state banking board was illegal and
unauthorized. Even tho 1t should
be conceded that the board did poss-
ess the power to close thea bank and
appoint receiver, nevertheless, the
action as taken by the majority of
the board was unreasonable, arbi-
trary. unjust and cannot be up
held
Action Is Condemned
@ After commenting on the fact
I that LANCER and Hall had sent state
examiner Lofthus out Of the state,
the opinion said: 5:...
The action Of -the respondents
irrespective Of the question of in
tent, accompanied with widespread
X publicity and specific notice to 9th
er banks of this state and their ac-
tion could not do otherwise than
occasion alarm and doubt in the
minds Of the public and of deposit
ors in the soundness Of the banking
institutions affected, as we'll as in
ali banking institutions Id the state.
i The acts Of the respondents as dis
closed in this record jeopardized the
solvency OF the relatOr bank as we'll
as other banks.
There is no other manner In
which this procedure can be charac-
terized other than arbitrary and
q contrary to both the spirit and the
letter OF the law It both merits
and receives the condemnation Of
this court" !" IS Il
The court went into the records
to- show that the bank had failed to-
comply with any OF the specific res
quirements OF Insolvency and add
ed. 3s sss
Action Held Illegal
5a. illegal action sof LANCER and Hall
n is.5shown by the court IN those two
Il 90f71ciala, attitude Inward g the sS re-.