The Bismarck tribune., 1933-12-28
echo OF GAMMONS
CASE Is HEARD IN
SUIT AGAINST BANK
State Seeks TO Recover $13,.
07o.37 IN Action Against
Local Institution

A civil action for $l3.07o.37 and in
terest, growing out Of the John Cam
mons embezzlement case. was launch.
I'd Wednesday against the former Sec
~etary Of the North Dakota industrial
commission and the First National
Bank by attorneys for the industrial
commission.
Harold Hopton Of Bismarck and
Fred J. Graham Of Glendale have
oeen named special assistant attor-
.aeys general to handle the litigation.
The case Is based upon alleged Tile
gal and unlawful deposits made In the
First National Bank between Dec. 8,
1925. and Sept. II. 1882, Of cashiers
checks issued by the Bank Of North
Dakota, payable In some cases to
Gammons and in others to the secre-
hary Of the industrial commission.
A formal demand served upon
6anmons and the First National
Sank sometime ago for payment Of
the sum and interest brought no re-
sponse, according to Hopton.
The demand alleges l8 such checks,
ranging In amounts from $l25 to e..
600. were deposited in such manner
illegally.
Claim Constructive Notice.
"Said sums" said the demand,
were deposited with actual and con-
structive notice to such bank. from
the checks and the endorsements
thereon. that they were funds be-
longing to the state Of North Dakota
and that said funds were converted
to the use Of John Gammons through
the aid and assistance Of the bank
and II said sums and interest are not
paid at once, suit will be commenced
against each Of you for the recovery
thereof. together with interest and
COSTS"
In the complaint prepared by the
special assistant attorneys general. II
r stated that under law AL STATE
funds and funds Of all state penal
educational and industrial institutions
shall be, by the person having contro
Of such funds, deposited In the Baul
Of North Dakota"
It Is claimed further that statute!
demand all funds Of public corpora.
tions and all funds OF the state an<
Of state institutions as defined there.
In shall be deposited In the Bank ol
North Dakota or in banks which have
l,een duly designated and qualified u
repositories Of such funds, and tina
The First National Bank never wa
designated or qualified as such de-
pository.
10 Checks Listed
The complaint charges that the Il
cashiers checks, totaling 4l3.079.S 81
we're deposited unlawfully In the FRS
National Bank to the credit Of JOIN
6ammons. secretary. the endorse
ments being fraudulent.
The First National Bank, Il !
charged, well knowing that It wa
rot . depository for public funds .
provided by law and having both &C
Jual and constructive notices from tn
checks themselves and the endorse
nents thereon, received the checks
and unlawfully collected the none
thereon from the Bank Of North Da
kota. assisting and abetting Gam
mons in converting and withdrawn
from the account funds for his owl
ose.
No audit Of 0ammons' accounts NJ
begun, the complaint states, unit
about Jan. !. 1888. and was not com
pleted until May Il.
/ The complaint Is signed by Attoene
General p. O. Satire. Hopton an
i Graham.
i 0ammous was convicted Of enl
hezzlement last summer and sentence
to seven years In the state peniter
iary but i ct liberty under bond
present pending m appeal.
Tho complaint was served on Il
First National Bank late Wednesdl
; by Sheriff ]. L. Kelley. who expects
to make service on Gammons Thur
day. 0amn1ons has heen living
; Bismarck and Mandsn for the ID
few weeks, according to Hopton.