The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-05-01
WASHBURN co.
LOSES APPEAL
TO HIGH COURT
Case Grew Out Of Purchase Oi
Coal For Various State
Institutions

Sustaining the Burlcigh county dis
fict court, the supreme court today
lphcld the state board Of admins
tration. defendant in suit by the
Nashburn Ignite Coal company in
= case involving coal contracts for
state institutions.
The Washburn company commended
that the board violated the state law
and in effect committed a fraud in
awarding certain coal contracts to
the Republic, Knife River and Lucky
Strike coal companies. 1t commended
that its bid was the lowest in price
per ton and that it should have re-
,eived contracts for the coal require
ments of all state institutions, about
10000 tons Il year.
The board contcndcd that il let the
contracts to the lowest and best bid
der on the basis Of heat units and
actual commercial value Of the coal.
The Washburn company sued both
as bidder on the contracts and as
taxpayer. alleging that the taxpay-
crs' interest required the lowest bid
to be accepted regardless of the
quality Of the fuel.
In its decision the court held that
$50 far as appears the board cxcrcis-
ed ITS honest judgment and accepted
the bids Of and entered into con-
tracts with the lowest bidders and
that as taxpayer the plaintiff suf-
fered no damage and is not entitled
to injunctional relief even though
the method followed by the board in
determining the lowest bidder and
letting the contracts was not that
contemplated by the statute
Reversing the Ramsey county dis
trict court the high tribunal held for
{. J. and II. j. Kelly, defendants in
an action by the Ramsey County Ma
tional Bank.
The cas-" involved checks deposited
Nv the kellys with the defunct
Devils Lake State Bank few min
utcs before it closed its doors as in
solvent. The checks. deposited for
r.,on. were turned over to the
Ramsey County National Bank with
oH the consent Of the depositors. The
case was brought to the supreme
court on charge of error by the
lower court in sustaining Il demurrer
to the answer Of the defendants.
In it's decision the supreme court
held that 'where an inSolvent bank,
about to close. accepts from Il Gus
toner certain checks for collection or
collection and deposit it commits a
fraud on such customer and the lat
ter may rescinG the transaction and
reclaim the checks from the bank.
Where the insolvent bank nego-
tiatcs such a check to person having
knowledge of the circumstances under
which it was delivered to and receiv-
ed by the bank, such person receives
no better title to the check than the
insolvent bank had"
Other cases decided by the court
today were: State vs.. Charles Alton.
Williams county. conviction on charge
of possessing Intoxicating liquor sus-
tanned. The court held that the evil
dcnct Of guilt was not strong but
of sufficient weight to prevent the
court from reversing the jurys YER
diet.
J.. W. Chubb vs.. Baldwin Piano
company, Burleigh county, lower
courts action in denying plaintiffs
motion for Judgment notwithstanding
the verdict affirmed. The case in
volvcd title to Il piano purchased by
the plaintiff on contract and later
returned To the defendant after par.
tial payment on the contract ilau
been made. Plaintiff claimed Illegal
conversion of the proDcrtr.