Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-12-21
ARGUMENTS in
PEOPLES BANK
CASE FINISHED
Will Be Held In Abeyance
by Judge Kneeshaw for
Next 40 Days.
No Evidence of Bank Board
Conspiracy Declares Pre-
siding Jurist.

At the conclusion of arguments
in the People's State bank inJunc-
tion case here this afternoon
Judge w. j. Kneeshaw announced
that he would hold the matter In
allegiance for the next 40 days IN
the hope that during that time
. stockholders, receiver, and others
interested could make some ar
rangements for the rc-opening OF
the bank.
Ir making this announcement
Judge Kneeshaw declared his
conviction that the banking board
was sincerely dcsirous that tho
bank should be re-opened and the
best interests Of the stockholders
and creditors served /,
- No foundation had been shown,
he declared for any charge Of a
conspiracy or, the part of g the
state banking board against the
g Interests 81 the bank or tts stock,
holders as WAS charged I'm tho
pleadings presented By William
Lemkc.
4 Tracv r. Bangs made his con-
J Guiding argument for Mr.. Valley
and the banking board i'm the
= course of the afternoon.
Arguments on behalf of the peti
TONERS asking for an injunction
against the sale Of the assets Of . the
defunct Peoples State bank of Crane
Forks, and the removal of Johr
Valley as receiver of the bank wer'
made before Judge w. ]. Kneeshav
this morning by Attorneys William
Lemke Of Fargo and F. B. 'Feetham
Grand Forks.
Tracy r. Bangs of Grand Forks 1!
presenting the arguments for th'
banking board and Mr.. Valley thi!
afternoon.
Letters Not Pertinent.
Speaking from the bench this morn
ing Judge Kneeshaw declared hi
opinion that the letters which passed
between Attorney General johnson
and George z. Duis Of Grand Fork,
were not pertinent to the present case
and did not tend to prove conspirac,
on the part of the state bankinf
board. This statement was made IL
connection with a motion by Mr.
Bangs that the letters be ruled o1t al
evidence.
$50 far as the letters are concerned
I've read them over and can't fine
anything In them pertinent to thi
case or tending to prove conspiracy.
said the judge. However they are il
now, and so I suppose they might a.
we'll stay in" '
Arguments Made.
Mr.. Lemke in his argument main
tained that the letters showed tha
the rights Of the stockholders sant
creditors of the defunctt bank had no
been given proper consideration by th'
state banking board and that th'
treatment of the bank had been die
tated by political considerations. HI
declared that the evidence which hat
been introduced showed Mr.. Valley
the receiver to have been guilty o
malfeasance of the banks funds ant
urged his removal. "s;
Mr.. Feetham in his argument lait
emphasis on the allegation that Mr.
Valley did not have the confidence
Of the stockholders and creditors o
the defunct bank. and urged that tn
court should appoint a receiver VIII
would be able under the law to carr.
on all business in connection, with tn
closed bank. This it is claimed re
ceiyer appointed by the state bank
ing board cannot do. t&
Power of the state banking board t,
sell the assets Of closed banks wa
also denied. This has been practical
ly conceded by the opposition.
Mr.. Bangs began his final argu
ment early this afternoon.
Wednesdays Hearing.
G.. B. Mcmillan. banker of ,sHannal
and member Of the. state guarant,
fund commission was put on the wit