Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-04-06
STANDS ON IT'S OWN FEET,

The supreme court of the state; in a final decision in
which four Of the five justices participated. declare dehn-
itely that the Bank of North Dakota, in so far as its legal
status is concerned, is a private business concern, and as
such, must stand on its. own feet, ifi. has any. That is
the effect OF the decision just handed down in the sarg-
ent county case in which proceedings were instituted to
garanishee on behalf of the local taxing unit funds which
had been deposited by the Bank of North Dakota in
local banks. .-
The decision is that the garnishment proceedings are
legal and proper. and that the same procedure may be
invoked to collect from the Bank of North Dakota that
may be instituted against any private bank. 1t is further
held. and this is an essential part of the decision, that the
state of North Dakota is not liable for any debts which
may be contracted by the, Bank. of North Dakota except
to the amount of the value of the bonds which the state
has issued according to law as an investment in the cap
ital stock Of the bank.
The arguments advanced by the attorney general in
this. case in support of. his contention that the Bank Of
North Dakota could no. be garnisheed. taken together
with arguments and statements which have been made
in connection with other related matters, present curious
examples of the manner in which the league hnanciers
have attempted to beat the devils arc, nd the bush in all
their complicated operations.
The league managers long ago exhausted their power
to obtain from the farmers adequate funds for their
needs in the form Of direct contributions or straight
loans. That orange, had been sucked pretty: dry Hence
indirect methods were employed to do that which could
ers' Stores concern: The newspaper. Service bureau, the
several local newspaper. enterprises. "A lot of: banks, and
so forth. Farmers wer, induced to- lend their credit to
these concerns with the understanding. that the enter
prises which they were thus financing were legitimate
business enterprises and that out of the profits realized,
sufficient funds would be obtained to meet these obliga-
tons as they fell due. and that they would never be pre-
sented to the makers for payment. The notes were
cashed, and the proceeds were passed around through
organization after organization, the hocus pocus being 80
complicated that it would take an accountant OF. more
than ordinary acuteness to keep track of them. The net
result, however, is that the makers of these. notes have
had to pay them, or are to be sued to enforce collection.
In the Bank of North Dakota case, the BANK wa.
made the heart and center of all this bogus fnanciering.
Through it the money of the various taxing bodies was
loaned to local banks such as the notorious Scandinav Wan
American Bank of Fargo, and by those banks was re-
loaned to the league enterprises where it was most-need-
ed. The constitution says unequivocally that the state
OF North Dakota cannot lend its credit to private enter
prises. But a private bank can lend it's credit in this
manner, and the state bank was created to do what the
state itself cannot do.
That is one side of the proposition. But when de-
mand was made on the Bank Of North Dakota for pay
ment of its obligations. payment was refused, and suit
was resisted. on the ground that the Bank OF North Da-
kota is really the state of North .Dakota.sand the state
cannot be sued by its citizens. For one Iurpose.ehe bank
was a private institution, and for another it was the state,
and therefore exempt from process Of law.
The supreme court decision settles all this. The Bank
OF North Dakota ISIS separate corporation, entirely dis
tinct from the state, and IL it Is insolvent the state i. not
liable for its deHnquencies. tx
As between depositing ones money in the Bank Of
North Dakota, which refuses to honor its checks and
paying 1t over to the league treasurer, to.-be- used in
maintaining q professional agitator. what's the, diner
ence1 5F# t $ f .
II former Emperor Charles Is to be taken to spain
By airplane. how IL the thing to. be done without violating
somebodys neutrality? M
Preddent Harding has changed his program thus
early In his Standardization. He started out by shaking
hands with al who came along. He has been obliged
to quit. he ista russed man. but muscles and 6isaments