The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-03
BANK RECEIVER
LAW IS FOUND
TO BE VALID
Supreme Court, in Decision,
Declares it was Within
Legislatures Power
BAIRD APPOINTMENT OK.
Court Also Holds That Re-
ceiver was Entitled to
Accept Position

The legislative act of 1923, con-
solidating receiverships of closed
banks under the Burleigh county
district court, was declared consti-
tItiOnal by the supreme court, in
an opinion announced late yester-
day. The validity of the act was
contested by w. H. Mcintosh, who
had been appointed receiver of the
Mohall State Bank by district court
judge. Several receivers who had
been named by district courts de-
clined to recognize the appointment
OF general receiver to succeed
them.
The sole question involved in the
case, the opinion, written by Jus
tice A. NJ. Christianson said, was
whether or not chapter 1877, laws of
1928, is unconstitutional. This act
provided that the supreme court
should assume original jurisdiction
il all receivership cases or trans
NIT all receivership matters to the
Burleigh county district court. In
pursuance of this, the supreme
court lodged receivership !supervi-
sion in the Burleigh county district
court and appointed District Judge
c. NJ. Cooley of Grand Forks to sit
in such cases.
Power of Legislature
The court, in its opinion, held
that "the legislature in the exercise
of its constitutional powers as the
lawmaking body of the state may
prescribe the conditions under which
a banking corporation organized un-
der the laws of this state shall be
deemed ins0lvent; authorize the At
torney- General of the state to COM
mence an action for the liquidation
of such bank, or banks; vest the
district court Of Burleigh county
with jurisdiction of such actions.
and require the supreme court, in
the exercise of its supervisory jur
designate Il district judge to hear
and determine such actions and
appoint Il receiver"
The court, in answering the OBJ
lection raised that the legislative
act fixed the venue Of all actions
closed bank, said that legislation
dealt only with acts involving insol-
vcncy of banking corporations and
there was no intention to make any
changes in the existing laws as
regards the venue Of suits by or
against the receivers of insolvent
banking corporations"
Affirm LefOr Case
The court, in deciding the appeal
of Adam A. Lefor, former receiver
OF the Farmers State Bank Of Bel
field, in the suit instituted against
him by L. R. Baird, general receiver
Of closed banks, for an accounting,
held that the appointment of Baird
as receiver was legal.
Lefor contended in the law suit
that since Mr.. Baird was member
of the state senate Of 1928, which
enacted the law providing for con-
solidation. of receiverships of closed
banks, Baird's appointment was in
violation of section 80 of the Con-
stitution which provides that no
member of the legislative assembly
shall, during the term for which he
was elected, be appointed or elected to
any civil office, which shall have been
created during the term for which
he was elected, nor shall any men,
ber receive any civil appointment
from the governor during the term
for which he was elected.
Mr.. Baird was appointed general
receiver of closed banks after the
1928 session by District Judge c. NJ.
Cooley, named by the supreme court
to preside in receivership actions in
the Burleigh district court. The
supreme court, holding Mr.. Baird's
appointment was valid, said that
"power of appointment of receivers
is inherent in courts of equity
and that, therefore, the Legislature
created no new office. The legis.
lative intent, the court found, was
to limit, rather than confer, power
of receivership appointments, since
it limited the number of general re-
ceivers to two. The compensation
was left by the legislature to th'
court making the appointment, th'
opinion, written by Justice Nuessle
recites.
Lefor, in appealing from Judg
Cooley's decision. had alleged tn
1923 act of the legislature was un
constitutional. The supreme cour
held in the Mohall bank case tina
the act is valid. Zuger and Tillotso
of Bismarck represented Mr.. Baird