The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1921-04-22
CANNOT DESIGNATE . !. !.
Co COUNTY REPOSITORIES

7 vuUMll uLEuJllUiMlllu Jul
.& Bismarck, N. D., April 21.-Pub-
lie treasurers are having troubles
of their own these days. especially
those that do not or will not follow
the new public depositary law.
Many such treasurers are risking
both personal prosecution and the
loss of public funds. ~ ,,.s 4
These troubles Of treasurers are
largely due to the opeation of the
initiated law effecting public funds
and to certain rulings of former
Attorney General LANCER, which
make it imperative on the part Of
the state bonding department.
backed by the attorney generals de-
partment-to protect its. funds in
particular and public funds in gem
eral. j.. -. ..... ~. 2
Treasurer is Own Boss -.
To begin with. public treasurers
who do not agree politically with
local boards have mad trouble with
them as to designating depositaries.
From Slope, Rolette, Burke, and
other counties present or incoming
county treasurers have sent word
that they would deposit all funds in
the Bank Of North Dakota, wheth-
er the opposing majority of county
commissioners like it or not. In
Rolette county the majority Of the
county commissioners went so far
as to sue the county treasurer in
district court in order to prevent
him from depositing county funds
in the Bank of North Dakota. How
ever, District Judge A. G. Burr
found in favor of the treasurer, 4.
O. Stadheim, when he decided that:
''The court is Of the opinion
that, the county commission
ers have no power at present
to designate depositaries nor to
compel the treasurer to fol-
low their suggestion. It is his
duty to safeguard the public
Warming Issued
Incoming county and other treas;
urers are being warned by the state
bonding department not to receipt
the same as cash from outgoing
treasurers, certificates of deposit in
state or national banks, for the rea-
son that such banks may either be
unable to pay such certificates when
presented or may fail before they
are paid. Treasurers are further
warned. that they are subject to,
prosecution and to cancellation of.
their bonds if they keep deposits or
make: deposits in state orsnational
banks where such funds are not
fully covered by bonds as provazeG
by the new depositary law, enacted
by the recent session of the legisla-
ture.
l.s' $4,000 in Closed Banks
What makes the state bonding
department especially. insistent in
this matter, is the effect of a ruling
that, was made in 1919 by former
Attorney General Langer's office, in
which the then state treasurer,
Obert Olson, was advised that he
was not obliged to deposit funds
of the state bonding department i'll
the. Bank Of, North Dakota but
could deposit these funds where he
pleased. y Thereupon the state
treasurer deposited these funds in
various banks in the western part
Of the state with the result that
$4,000 of state bonding funds are
frozen in these banks.
There appears to be no doubt
that Langer's Office had no legal
right to make such ruling. as the
bonding. fund law specifically pro-
vides that funds shall be deposited
in an approved state. ,depositary"
and fhero was, Sfhang on1v ono such
depositary-the Bank of North Da-
kota. Estate Treasurer Steen, by
the way. now deposits all such funds
in the Bank Of North Dakota.)
45a In short the state bonding de-
partment cannot stand any sudden
large drain on It's funds, hence it
and the attorney generals depart
ment are insisting that public treas
urers watch their step in tracking
the new depositary laws.