The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-05-16
COUNTY FUNDS
!TIEDUP WHILE Il.
DISPUTE S IsoN N
Example Cited During Hearing
Held in District Court in
Treasurer's Row :.
AFFECTS CITY SCHOOLS
Right Of County Treasurer To
AFFECTS CITY SCHOOLS
Right of County Treasurer Ia
Make Time Certificates
Deposits Is Up.

Make Time Cert1ncateS
Deposits Is Up.
Hearing was held in district court
today in the case of several local tax
payers seeking writ Of mandamus
against II. r. Knappen, retiring coun-
ty treasurer, and the Bank of North
Dakota, to compel Knappen to turn
over to the treasury cash which had
been deposited in the Bank of North.
Dakota on time certificates. IA
1t developed during the hearing that
Burleigh county funds have been CON-
pletely tied up. According to. att0r-
neys u A. Flow, the incomins treas
urer, refused to take the certificates
of deposit from Knappen Knappen
in turn, they said, refused to turn over
the remaining funds to Flow. The
funds were further tied up when
Driscoll township garnisheed county
funds in the Bank of North Dakota.
Scott Cameron, attorney for the
F, taxpayers declared that many political
subdivisions Of the county are in
need of money because the appor.
tionment is held up by the t;eup Of
funds. The city schools of Bismarck
he said, had but few dollars On hand
and were forced to borrow money at Z
percent interest to pay teachers.
Garnist,e.e Action
The DriscOll township action, al
torneys for the taxpayers charged.
was brought for the purpose of pre-
venting the Bank of North Dakota
from paying the county money. The
attorneys for the township were f. S.
Allen and Joseph Coghlan. g..
The case was continued this after
noon after lengthy arguments on both
sides. Judge Nuessle expressed doubt
as to the right OF the taxpayers to
bring the suit, intimating it was the
duty of Treasurer =. A. Flow, and
asking attorneys for additional argu-
ment on this subject. -
,knarpen's Return
Attorneys representing Mr.. Knappen
and the Bank Of North Dakota were
w. A. Anderson, first assistant Attor-
neyGeneral; George K. Foster, assist.
ant Attorney General, and 9. Z. Crum
Attorneys appearing for the taxpayers
were Scott Comeran, G. c. Wattam and
! States Attorney F. v. McCurdy.
Knappen presented return to the
alternative writ and asked dismissal
of the petition. 5
Several important questions may be
decided in the suit il Judge Nuessle
holds the case properly brought.
Among them are:
Whether the Bank Of North Dakota
is required to give bond as public
depOsitary.
Whether county treasurer has the
right to deposit money on time deS
p0sits. IL.
whether a county treasurer is re-.
uuired. to turn over cash to his sue
cessor.
The position of the taxpayers was
outlined by Mr.. Cameron. He argued
that the Bank of North Dakota was
public depOsitary the same as state
or national bank but that the depo.
sitary law expressly required that the
bank furnish bond payable to the
corporation making the deposit. he
asserted Knappen had no right to de.
post money in the bank without pro-
tecting the county by bond. he as.
serted Knappen not only deposited
the money wrongfully but feloniously.
Held Bond Desirable
Cameron held that bond was par.
ticularly desirable from the Bank OF
North Dakota, saying the supreme
court had held the state did not guar
antee the deposits in the bank.
The certificates Of deposit, he ar
gued. were void because they were
made without any authority, saying
there was no statutory authority for
the treasurer loaning money, ana ne
termed placing money on certthcate
a loan.
~ Fosters Argument
=. Mr.. Foster held that there was not
sufficient cause of action stated in
the netition, and that the court did
not have power to issue the writ OF
mandamus. He said the general pro-
nositfon was admitted that when AN
officer goes out of Office he must turn
over all equipment, money or para.
phernalia of the office, and he termed
the certificates part of the parapner-
MALTA of the office.
The Bank of North Dakota, Mr.. Eos
ter argued, was the only legal deposl-
tary at the time the deposits were
made by Knappen.
Knappen's return showed that there
was on hand when his term OF once
expired May / total Of $439, ,S36.l2
OF this $23S, ,54O.43 had been placed on
certificates of deposit in the Bank OF
r.