Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-14
n. D NOTE TO !
go NA - ANs
CHICAGO BANK I
v-MHA 5s$e.
Y" Nv Nv r.
DUE This WEEK
Complications Expected; Sc.
cured by 81, 200, 900 Worth.
!, rs S. .A Bonds. S. 3,

Once again the supreme court or
North Dakota has knocked down q
house of cards carefully constructed
by the N~onpartisan League administ
ration. and has brought nearer the
day of reckoning for the Bank OF
North Dakota.
by Its decision handedldown SatMr-
day affirming the right Of counties
fand other subdivisions to garnishee
funds of the Bank of North Dakota
deposited in local banks. the court
has played smash with the plans OF
the Industrial commission to keep
public funds frozen up in the bank or
situations for an indefinite period.
AS a result the Bank Of North Da-
kota finds itself face to face with the
unpleasant necessity of paying it's OBJ
1gat1onS which it has been able TO
dodge for the last three months
through the arbitrary order Of the In
dustrfal commission.
Note Is Due
Incidentally the. situation is com
plicatad for the Bank of North .Da-
kota by the fact that its note for 81
o0o, e00 held by the Merchants Loan
and Trust Co, Of Chicago, falls due
next Tuesday, March is. The note Is
secured by $780, 900 worth Of North
Dakota bonds hypothecated by the
sank. Failure to pay will gives the
Chicago concern the right to dispose
I the bonds in partial settlement of
it's! claim.
ALL OF which tends to make. the
present situation of the Bank of North
Dakota dectdedly~awkward to say the
least.
Commissions Order j.,
Some three months ago the In
dustrial commission issued an order
under which no county or other SUBJ
division might withdraw funds from
III Bank of North Dakota unless it
q continuing to deposit all Of its
funds san that institution, the oh3zasTt
Of @the.:sdict apparently being to pf4c-
ticallyanullify,the initiated law pass
ed by a big majority of the people at
the general election.
The result of this order was that
funds which had been deposited in
the bank were apparently due to re-
Wain there %eternally, as far as tho
depositing subdivisions were concern
ed. althoughras the facts brought out
in the audit of the bank showed, they
were entirely available for r%edeposit,
or loan to deserving league banks.f
Sargent County Action
Finally. however, Sargent county
decided that il. had asbetter right to
its eWpssfHndsathan the Industrial ce1s,
missions Or any of its favored ledGKIie
banks did. Accordingly the county
calmly proceeded to garnishee the
funds Of the Bank of North Dakota
deposited in banks in that county.
Furthermore its action in So doing
was upheld by the district court
In a short time this example had
been followed by a number. Of other
counties school districts, ETC.. the
officials of which thought they had
as much eed of their own funds las
did such institutions as the Scandina-
vian-American Bank of Fargo or
other such outfits.
ue Lemkc Annoyed
Bill .Lemke, the attorney general.
and member of the Industrial COM
mission was peeved. At first he talk
ed about. injunctions. but finally de-
cided to appeal to the supreme court
from h decision Of the Sargent coun-
ty district court holding that such
garnishments were legal.
The case was argued before the SUI
preme court some two weeks ago.
Lemke appearing for. the Bank OF
North Dakota. and "A. G. Divet of
Eargo,efor Sargent county. q.
1t was pretty generally felt at the
ftin1e of the hearing, that Mr.. Divet
had decidedly the best OF the argu-
ment and this idea is now borne out
by the decision OF the court. Z.