The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-04-05

The majority Of the court reaffirms
its decision that the Bank Of North
Dakota Is subject to garnishment and
is in fact a separate agency or, in a
way, private institution, view
which Justice Grace declared in his
first dissenting opinion would strike
down the state industries. ~ ~
How It Affects Bank.
One OF the important contentious of
proponents of the Bank of North Da-
kota, in its appeal for public confidence
has ben that the entire state of North
Dakota is behind it and the entire
credit Of the state is behind the bonds.
The court now holds that 1t cannot
involve the state beyond its $2,000,00O
capital. ... E.>
"These limitations, for the reason
hereinbefore stated, are such that the
judgment obtained is only binding up
on the state to the extent OF the cap
ital it has put into the bank. For
the purpose OF determining this liabil.
ity the bank is in legal effect an en1
tity, for it is legally incapable of bind
ing the state beyond its interest in
its capital funds ...f4'
Referring to the constitutional pro-
vision, authorizing the state to-, en-
gage in Industries, Justice BirdAell
says that the very provision relied
upon by Attorney General Lemke to
support his argument shat the Bank
of North Dakota is the state of North
Dakota, we find that the section re-
lied upon prohibits the state from do
ing the very thing that the-legislature
has expressly authorized the bank to
do and which it has done, namely,
loan it's credit to individuals, associa-
tions or corporations. He continues:
The Dilemma. :,
'If the Bank of North Dakota is the
State of North Dakota, it could not.
therefore, possess any such authority
as the legislature has expressly con-
ferred in Section Is (of the bank acD.
It Surely would not be contended that
the state, when acting as the Bank OF
North Dakota, can do the things which
the constitution says the state cannot
do at all! The state, when function
ing as a bank, is still subject to the
express limitations of the constitution.
The creation of this agency Of the SOW
ereign power can not result in Il
super -state-a government function
ing without constitutional restraint. 1t
(the bank) may hazard the capital 1t
has been authorized to use in what
ever way may be deemed expedient and
within the law in order to make the
banking business a success, but it can
not involve the state by attempting 10
pledge it's credit in transactions the
state is expressly prohibited from en-
tering into. f..
... The Bank Law Provision.
"When we extend the examination
of statutory and constitutional pro-
visions with view to determining the
character of the agency of the bank,
additional provisions are found which
demonstrated that the bank, though
owned by the state, is not in fact the
state. Turning now to chapter 14S OF
the Session Laws of 1919, which pro-
vides for the issuing of the bank
series of bonds. After prescribing the
formalties for preparation and issu-
ance the law provides in section 4:
Nothing in this act, however,
shall be construed to prevent the
purchase of any of said bonds
with any funds in the Bank of
North Dakota"
Similar provisions are found in the
acts authorizing the issuance of S.
100000 of bonds of the mill and ele-
vator series, (Chapter 153, Section y,
in the act providing for the issuance
of s10.000,000 of bonds of the real es-
tate series Chapter 154, Section g.,