New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1919-10-29
COURT CONDEMNS
CLOSING OF BANK
EXAMINER is GIVEN POWER TO
RELEASE NORTH DAKOTA
INSTITUTION.
FARGO BANK is RE-OPENED IN
CHARGE OF ITS OWN
OFFICERS.

Fargo, N. D., Oct 25.-The Scandi-
re-opened this morning, in charge of
the officers of the bank, on the order
of o. E. Lofthus, state bank examiner.
Mr.. Lofthus stated, shortly after
the bank was re-opened, that he would
issue formal statement this afternoon
through his ttorney, William Lenke.
The re-opening of the bank, which
was closed on October 2 by order of
the state banking board, was ordered
by the supreme court of the state, which
handed down decision late yesterday
in which it was held that the banking
board had exceeded its authority in
closing the bank, and in which it also
was held that the bank was solvent.
By this decision, receivership pro-
ceedings instituted by Attorney General
William LANCER in the Cass county
district court. against the bank are
Quashed.
The Courts Opinion.
The opinion of the court was written
by Justice Brownson and concurred
in by Justice Grace and Robinson.
1t directed the state examiner to contineu
in charge of the bank with full power
to release possession of such bank to
it's officers when he deemed, fit" and
restraining the respondents, Attorney
General LANCER, Secretary of State
Hall, the state banking board and their
assistants from further continuance
of their wrongful acts.' Chief Justice
Christianson and Justice Birdzell dis
sented and reserved the right to write
and file opinions presenting their views.
Injunction Made Permanent.
The supreme court in making its
temporary writ permanent, sustalns
the contention of the state examiner
that his perogatives were usurped by
the banking board in closing the Fargo
bank, and on this point the court says
that the action of the banking board
was unwarranted, illegal and neither
within the spirit nor letter Of the legal
power conferred upon such board
Post-Dated Checks Held Good.
The court holds that post-dated
checks are negotiable instruments sim
liar to bills of exchange at future date,
and may be used as collateral paper
the same as any other negotiable instru-
ments.
ut is to be noted" the opinion
continues, that the acts of the respond
ents from the beginning up to the time
this court interposed its original iuris-
diction disclosed no desire and evidenced
no attempt to protect the public monies,
the guarantee fund, the moneys of
depositors or the property Of the stock
holders by granting the bank any chance
or opportunity to comply with the find
ings Of the banking board or to rehab-
ilitate itself. There is no other manner
in which this procedure can be charac-
terized than arbitrary and contrary
to both the spirit and letter of the law.
1T both merits and receives the condem-
nation OF This court.
Speaks Of ''Public Conscience"
Justice Bronson comments on alleg-
ed discrimination sought to be applied
to this bank in order that it may be
deemed insolvent and asserts the de-
termination of the court that there is
such a thing as public conscience
and that these acts upon the record
submitted to this court were unwarranted,
unreasonable and without foundation
OF law"
The opinion says that the record dis
closes to the court that the state
examiner placed in charge by this
court has been diligent in performing
his duties that he has made every eff
fort to conserve both public and pri-
yate interests, and that by his ener-
gies the bank through the cooperation
of its officials has disclosed an ability
to comply with all the lawful orders of
the banking authorities of this state
that according to his report, such bank
is not only solvent, but retains both
it's original capital and surplus unim-
paired, as well as some undivided pro-
fits. The interests Of this state and the
credits of its financial institutions at
home and abroad have been needlessly
jeopardized and public alarm has like
wise been needlessly created.
Deputy Sheriff Herman Jahnke made
business visit in Mankato last We'd