The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-01-17

testing the eonstitttionalityN Of til,
said law, which terminated by holding
that the law was constitutional. (Set
State Of N. D. v. First Htatc Bank o.
Jud, ct al, ZOE N. W. 391. Baird !,
Lsfor, POI N. w. 1861
When the law went into effect
July I, 1928, there were some sixt,
closed state banks. When the pro
ceediugs appointing receiver in thu
first action were completed there
were eighty banks closed for which
receiver. was appointed on October
o, 1928. Subsequent actions were ip'
stitutcd from time 10 time, with th<
result that between July /, 1928, and
July 1, 1926, there were, twenty -four
actions Instituted against CLOSED
banks, which were consolidated into
the one action as contemplated by the
law in which proceedings one receiver
was appointed for the several insol:
vent banks numbering approximately
$50. !,
Chapter 1877, to which have refer.
red, contemplated the liquidation OF
the affairs Of the several institutions
under supervision Of the court and
also for the consolidation of actions
appointing receiver. It did not In
any manner attempt to provide, how
the general management was to be
accomplished. II was incumbent
upon the court and its receiver to
work out the details. In approach.
ing the question OF organization, two
general plans Immediately presented
themselves, one contemplating the
appointment of deputy to be placed
in charge Of each institutionss con-
Quoting the ,business frem the hanks
former ,qv aFtcrst .wbile, the, other con-
templatat the consolidation Of all the
work in one large office, Both plans
had advantages and both ,disadvan-
tages. The operation Of each insti-
tuition from its fQtmer place of bust
ness under single manager would
keep the receiver in the community
where he had to do business and also
make him and the records readily ar
cessiblc to the creditors, which Of
course was. 2 convenience, and If the
manager was competent, tended to
keep up the morale. This ;Was the old
customary practice but had to be
abandoned on account Of the enOr-
nous cost which was all out 6f pro-
portion to tho reaults obtained. The
other plan, that OF establishing one
large office from which affairs o.
each institution could be administer
ed, would be the ideal plan, provided
we were building up business, for
then the several employees could be
detailed to different classes Of work
and thus each employee would be as
signed to the class Of work for which
he was particularly fitted. Another
objection to this splAn wn8 that lit
would take too Long to get 1t into
operation. The situation demanded
immaculate action and attention. From
the people OF the state, -fall 10 the
made then usually 20 over for an
other year. After csrofuily consider
ing both of these Ranefal plans and
Weighing the advanta1es .and dis
advantages Of each, :, . ,eompYomise
was decided upon which Ii was Be-
iieved would embrace The sdvsnt.ses
Of each and Is q 1sree extent eliin.
mate the DISADVANTAGES. This plan
provided for the division Of the state
into DISTRICTS and ~ ic9ntfaA cor
advantaeeons point In each district
the ,establishmcnt Of m office from
which the details Of each hstitation
IN that dtstrict could bc. handled.
Accordingly eight districts were
estabilshed with .headauaEtor. ias fol-
lows lows 9sman ;s.anSt, Devils Lake
new Engiand, ,Nprl!nstons Fargo,
Lisbon and -Wattoxd CITY, a manager
WAS selected and epIa0ed ~, charge pf
zach district: Each District ;was to be
q unit similar in orgspi1atipn. TO