Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-10-19

a VI tahe CINFt, 1FOm
mudAtins or1 removing from
ing and custody any document,
paper. record, or INSTRUMENT re-
lAting in any way TO any Of the
matters and things complained
about in this action and each
and every OF the said defendants
be-. and he Is hereby restrained
and entoiIcds during the tendency
OF this action, Or until the fur
thor order 81 this cOurt from in
tcrfertng with any person or per-
SONS appointed or approved by
this cOnrt Is prayed for herein,
and each and every OF said de.
PENDANTS shall place any and all
books, documents and papers in
his custody and control relating
to any of the matters and things
complained OF in this action at
n disposal Of tins court or it's
appointees for the purposes here
in stated.
In the meantime the above named
defendants and each OF them are in
all things restrained from in any nan
ner performing any of the acts against
which a permanent injunction is asked
In the above entitled proceedings.
The Courts View.
In issuing this order Judge coffey
declares that upon the affidavits made
by the plaintiffs and other papers in
troduced In the case, it appears to
the court as follows:
That the various officers named in
the complaint have failed to perform
their duties as provided by law.
That ID. g. Poindexter, state audi.
tor, has audited and paid items which
We're not proper charges against the
7 a "a L hN1$ ~ ~ j. r.
the personal and political benefit of
various persons including Governor
Frazier, Attorney General Lemke and
Commissioner Hagan.
BANK NOT A BANK.
That the state industrial com.
mission failed to organize the
Bank of North Dakota as a bank
as required by law under the CON
sttution of h state, and that
the said Bank of North Dakota
was legally entitled to
transact business as a bank.
That Frazier, Lemke and Hagan
deposited and caused to be deposited
in thu Bank of North Dakota, we'll
knowing its insolvent condition, large
sums Of money received in trust from
the government Of the United States,
and accepted in trust by the state of
North Dakota, well knowing also that
the Bank of North Dakota was un-
able to repay these trust funds or any
substantial portion thereof, and have
invested these trust funds in specula-
tive ventures.
failed to meet as required by law for
the levying of state taxes.
That the Bank of North Dakota is,
and has been for some time past, in
solvent and unable to pay back the
funds of various public institutions in
GLIDING the trust funds of the educa-
t1onal institutions Of the state.
RECORDS IN DANGER
That the defendants. Lynn j.
Frazier, William Lemke, John N.
Hagan, ID. G. Poindcxter, F. w.
Cathro and George E.. Wallace
are likely to remov and destroy
records and files u their possess
sion in order to continue their
policy OF secrecy, evasion and ST.
lcncc n for the purpose OF COW
crtng up transactions which they
refuse to disclose at the present
Inn to the taxpayers and other
state officials who have sought to
secure Information with respect
to their public acts.
Thai the only manner in which
this court, plaintiffs in this action,
and the other taxpayers can be
made familiar or in any n
acquainted with the true or APP
proximate condition of the public
funds, accounts, and the condi-
ton of the various trust funds Of
h state. Is by IN accounting at
the hands of independent. expert
public accountants, who shall be
required to report to this court.
Excess Loans.
That the members of the state in
dustrial commission, the defendants
Frazier, Iemke and Hagan. have in
violation of law loaned on real estate
amounts in excess of fifty per cent of
the value of the security. and that
they have used trust funds derived
from the sale Of and leasing of state
school lands for this purpos notwith-
standing the limitation imposed by
the constitution to the effect that the
state school funds cannot be loaned
In amounts more than one-third Of
the value of the real estate security.
That in violation of the home build
! ers law the members of the industrial
commission have made loans in
amounts in excess OF those allowed by
the law. =
That it appears to the court that
i~rreparable injury and damage Will
result by a continuation of the prac-
tices Of the defendants above named.
Charges by Plaintiffs.
The allegations made by h plain
tits in instituting the suit set out at
greater length the alleged facts set
forth by the court IN issuing his re-
straining order.
Special emphasis is laid on the fol-
lowing allegations:
That the Bank of North Dakota is
not actually a bank. having never been
incorporated as provided by the state
constitution.
That school funds and other trust
funds have been thrown indiscrimin-
Ately into the bank in the general
fund and thus diverted from the pur
poses for which they were intended.
That the Bank of North Dakota is
tnsolvent. In support of this allega-
ton, a number of facts are cited.
The Plaintiffs.
The action is brought in the names
Of Jacob Yaeger, r. G.. Catron, Alex
r. Clemens, s. F. Corwin, c.. A. Klaus,
H. L. Wolf, w. r. Kellogg, p. N. Ale
len, Ben Orlady, H.. E.. White, Kate
e GlaSpell, Martha A. Lyman. P. w.
Eddy, Aleon Wells, r. r. Wolfer, o.
Zimmerman, Robert Clenden!ng. and
others whose names will be hereinaft-
er inserted. on behalf Of themselves
and all other taxpayers of the state Of
North Dakota
The Defendants.
The defendants are named as fol-
lows:
Lynn J. Frazier, William Lemke,