The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-10-20

bank o. NORM Dak0tI from re.
ceiving further deposits and per.
forming other functions Oi the
state institution.
In the order diSsOlving the in.
junction, the supreme court di.
reefs Judge COffey and the plain.
tiffS to show cause Why the order
Of dissolution should not be made
permanent. This order will be
before the court Nov. /.
Attorney General Lemke secur.
ed the order after refusal Of Judge
= Cofiey voluntarily to vacate the
Injunction granted late Tuesday.
An appeal to the supreme court was
to be taken this afternoon from the
order Of District Judge Coffey, granted
at Jamestown prohibiting the Bank OF
Z, North Dakota from receiving deposits
and otherwise affecting state officials.
Attorney General Lemke said the
action would take the form Of an ap
plication for writ of certiorari
which he said, would nave the effect
of staying all proceedings in the case
and suspending the order of Judge
Coffey.
The Bank of North Dakota had not
had any deposits rendered it this
morning, according to bank officials
Treasurer John Steen SAID that he had
not sent any money to the bank, and
that he had asked the attorney gen
eral for legal advice.
Eject of Order.
rb. .o,,,t,f, or1or vast two ipo6 oil Of
the officials named, including most OF
the state officials. from depositing any
money in the Bank of North Dakota
during the pendency OF the. order, the
bank from receiving deposits of any
kind, restrained Auditor Poindexter
from auditing any accounts or paying
the same other than for legitimate
expenses of the state Of North Da-
hota. Treasurer Steen was enjoined
from depositing any money in the
bank, the members Of the board 0.
equalization were restrained from fix-
ing any state tax levy, the Spitzer-
Rorick company, the Toledo firm said
to have bought the state bonds from
selling or negotiating any bonds now
in their possession, the industrial
commission and F. w. Cathro were en-
ioined from disbursing any funds IN
the possession, custody or control OF
the Bank of North Dakota other than
for the purpose of paying checks or
drafts drawn by bona 1ide deposltors,
the industrial commission and Pom
dexter were enjoined from using any
state funds for political purposes, the
Bank of North Dakota was adjudged
to be insolvent and thereby unfit to be
the depository Of public funds. The
hearing was set for Nov. 3.
State officials, both Nonpartisan ana
independent, were named in the SUIT.
The beard of university and school
lands, composed of Governor Frazier,
Thomas. Hall, William Lemke, MISS
Nelson, and Mr.: Poindexter was
charged in the suit with having not
safe-guarded school funds in depos-
iting them in the Bank Of North Da-
kota. charged as an unsafe depository
Messrs. Frazier, Olsness, Lemke, Steen
and Lofthus were charged with ha'-
ing. as a state auditing board, approx
ed bills for political advertising with
the states money. Messrs. Frazier
Lemke and Hagan were charged with
having as an Industrial commission
expended. state money for polltlca!
propaganda.
Papers Are Served.
The papers in the lawsuit were served
late Yesterday afternoon upon stats
officials or deputies, ami the Bank OF
North Dakota. A deputy sheriff was
accompanied by Orms0y McHarg, one
of the lawyers in the case, in makins
the rounds Of the capitol offices.
Attorney General Lemke arrived II
his office late in the afternoon, COM
ing from Hatton, in the eastern par
Of the state where he ndd been speak
ing. He said he was awakened at !
O'clock in the morning, told about tn
law suit, drove 70 miles across coun
try and caught a train to Bismarck
He discussed the law suit with nj!
IDENTITIES on his arrival, considering
its effect on the state government am
le"al stems to be taken.
The action was denounced by M.
Lemke, especially Ormsby McHare
jamestown lawyer, who has MAINTAIN
ed offices in New York for seVera
years and who formerly was prom
nent in national politics. The attor
ney general also expressed surprls
that Judge Coffey granted the ln]unc
ton without notice to the state.
Surprised At Courts Action.
81 am surprised that any court with
out giving any notice whatsoever t
any Of the officers Of the state an
without giving such officers an OF
portunity to be heard could be II
tuced by the false and periured an
davit of an attorney from Wall stree
to issue an injunction. the effect
which is to tie up the state govern
ment and prevent it from carryin
on it's governmental duties
Lemke also declared that the su
was intended to step the bond sale,
rossible. and for this reason the plail
tiffs asked and obtained an order pr
hibiting the tax commissioner fro
certifying out the state tax. lev
n.