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FAILED BANKS PAY $179,112 LINCOLN. March (AP) Dividend payments during February totaling $179 to depositors in failed state banks were announced Tuesday by Governor Bryan Nine banks were involved in the payments. They are Murphy phrey 10 Knox Bank bank Mitchell, per cent Mitchell State bank per cent. $24.Nebraska State bank Bridgeport 10 per
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ART TORGESON SUCCEEDS BLISS AS BANK RECEIVER Arthur Torgeson, brother of Atty. Torgeson of this city and forbank employe here, will succeed H. Bliss as bank receiver in this district. special from Gering says: Bliss, former secretary of trade and commerce, presented his final report and resignation as receiver for seven defunct state banks in the Seventeenth judicial district to Judge Carter here Tuesday. Torgeson of Scottsbluff appointed to succeed Bliss as The defunct banks involved in Tuesday's reports are Irrigators', Scottsbluff; American bank and Mitchell State, Mitchell; Lyman State, Lyman: State bank, Bank of Bayard at Bayard; Nebraska State at Bridgeport.
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Seven Institutions That Have Closed Doors SUCCEEDS BLISS WHO WAS UNSEATED The resignation Clarence G. Bliss, former secretary of the partment of trade and commerce, received for seven failed banks in western was accepted Wednesday by District Judge Carter at Gering and the appointment of Torgeson of Scottsbluff succeed Bliss confirmed. Bliss filed his final reports October His resignation was ed in district court Benyon, former attorney for the banking partment. Banks which Bliss control Nebraska State bank, Bridgeport; Bank of Bayard, Lyman state Mitchell State rigators bank Scottsbluff; Ameribank, State Bank of These defunct institutions all located in the 17th judicial district. the district Luikart, present secretary of the trade and commerce, had asked control in an application for appointment receiver filed at (Continued on page
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Luikhart Files Suit To Oust Torgeson as Failed More fireworks broke out this week in the defunct bank situation in westNebraska, when word was received that E. H. Luikart and Gov. Bryan were filing suit to have Torgeson removed as receiver eleven failed banks in western Nebraska. Torgeson was appointed by Judge E. Carter some time ago. The Governor charges that Torgeson has received more pay than any other bank receiver, and that such excess salary must come out of the depositors' share of recovered funds in failed banks. further declared that banks in of the state would not pay out percent under Torgeson. Mr. Torgeson states that he will be glad to have an investigation of his management of failed banks. He cites several instances where banks he has handled have paid out considerably more than that, as follows Irrigators, Scottsbluff, 57 per cent; American State, Scottsbluff, 58.25; American bank, Mitchell, 50; Bank Bayard, Bayard, 50; Nebraska State, Bridgeport, 55.9; Mitchell State, Mitchell, 35.5; Lyman, 17; State Bank. of Minatare, Minatare, Bridgeport bank, Bridgeport, 16 per cent.
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COURT SUSTAINS OF DISTRICT JUDGE ER OF GERING Lincoln, April braska supreme court today tained the action of District Judge Carter of Gering appointTorgeson Scottsbluff failed state banks the Seventeenth judicial district. Judge Carter had refused the plication secretary the trade to be made succeeding Bliss, his predeoffice. The supreme court held that where liquidation state bank conducted in court equity the procedure judicial and executive. The court also ruled that the appointment of receiver should not be or controlled the governor legislature. the imperative duty of the judicial protect its jurisdiction the boundaries of power fixed the constitution, the court legislative for the appointment the of the department trade and receiver all state must regarded as merely legislative the court, opinion stated. Otherwise this would the court finds. The decision of the court terminates controversy between banking department officials, Gov. Bryan Judge Carter. Torgeson was receiver the banks when Clarence Bliss, former secretary of the department trade resigned Radke, counsel for the receivership division, applied for the of Luikart, but refused by Judge Carter. Judge Carter announced would consider substitution of Luikart Bliss until assured Governor Bryan would not interfere Luikart receiver. Torgeson subsequentnamed. The seven banks concerned the today the State Bank of Minatare, Mitchell State bank, the Irrigators' Bank of Mitchell, the Nebraska State Bridgeport, the Bank Bayard. eighth bank the Seventeenth district turned Torgeson was the Bridgeport bank. cause properly before court of equity for the court added the appointment of judicial which cannot be exercised controlled the governor Bryan today declined discuss the court decision until he studied Secretary Luikart also was reluct said far physical concerned and there's lot of with no extra Radke, receivership counsel, immediately announced he would ask the court rehearing and would submit brielf support of motion within few days. Referring the decision said means the return the abandoned method of appointing independent receivers. 'According ruling," added. may may appointed receiver failed bank. The matter purely the control of the
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COURT FIGHT LOST BY CASES Decision Upholds Torgeson as Liquidation Officer in 17th District LINCOLN, April 16, Nebraska supreme court Saturday sustained the action of District Judge E. F. Carter of Gering in appointing A. Torgeson of Scottsbluff as receiver of seven failed state banks in the Seventeenth judicial district. Judge Carter had refused the application of E. H. Luikart, secretary of the state department of trade and commerce. to be made succeeding Clarence Bliss, his predecessor in office. The supreme court held that where liquidation of state bank conducted court equity the procedure is judicial and not The court also ruled appointment of receiver should not be made controlled by the governor legislature. the imperative duty of the judicial to protect its jurisdiction the boundaries power fixed the constitution, the declared legislative act providing for appointment of the secretary department of trade and commerce receiver for all insolvent state banks must be regarded merely legislative recommendation the court, the opinion stated. Otherwise this act would unconstitutional, the court finds. decision terminates con troversy between state banking officials, Governor Bryan and Judge Carter appointed receivof the banks when Bliss. of the department of trade and resigned. Radke, counsel for receivership division, applied for appointment of Luikart. Judge Carter refused to consider this unless assured Bryan would not interfere with Luikart ceiver Torgeson subsequently was The seven banks concerned are the State Bank of Minatare. Mitchell State bank. Irrigators Bank of Lyman State American Bank Mitchell braska State Bank of Bridgeport and the Bank Bayard eighth the Seventeenth district turned Torgeson was the Bridgeport bank. Bayard A. Paine and L. Day dissented from the supreme court decision.
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TORGESON WINS IN SUPREME COURT SUPREME COURT UPHOLDS DECISION OF JUDGE CARTER IN BANK RECEIVER CASE Linceln. April 16-The Nebraska supreme court today affirmed the action of District Judge E. F. Carter in appointing A. E. Torgeson as receiver of seven failed banks in the seventeenth judicial district. The deeision terminates a controversy between state banking department officials, Governor Bryan and Judge Carter Torgeson was appointed receiver for the banks when Clarence G. Bliss, former secretary of department of trade and commerce, resigned. F. C. Radke, counsel for receivership division. applied for appointment of E. H. Luikart, Bliss' successor, but this was refused by Carter. Carter announced he would not consider substitution of Luikart for Bliss until assured Governor Bryan would not interfere with Luikart as receiver. Torgeson subsequenty was named. The seven banks concerned in the decision today are: State bank of Minatare Mitchell State bank, Irrigators bank of Scottsbluff, Lyman State bank, American Bank of Mitchell, Nebraska State bank of Bridgeport, and the Bank of Bayard. The eighth bank in the district turned over to Torgeson was the Bridgeport Affirming Judge Carter's action, the court held where liquidation of an insolvent state bank is conducted in court of equity pursuant to law, the proceedings is a judicial and not executive order, from which an appeal is allowed by statute. "In a cause properly before court of equity", the court added, "for determination, appointment of a necessary receiver is a judicial function which cannot be exercised or controlled by the governor or the legislature." The court also said: "It is an imperative duty of the judicial department of the government to protect its jurisdiction at the boundaries of prower fixed by the constitution.' Answering the contention of Governor Bryan, Luikhart and Radke, that the law clearly specifies the trade and commerce department secretary shall be sole and only receiver, the court said: "A legislative act providing the secretary shall be the sole receiver of all insolvent state banks, amounts to no more in a judicial proceeding, properly pending in a court of equity for the liquidation of a bank, than legislative recommendation to the judiclary to appoint him. as otherwise the enactment would be an unconstitutional encroachment on judicial power." The affirming decision, written by Justice W. B. Rose and concurred in by majority of the court, was dissented to by Justice Bayard A. Paine Justice L B. Day also dissented to the majority decision, but did not concur in Justice Paine's prepared opinion of dissent.
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POWER TO SELECT BANKS' RECEIVERS Declaring that the imperative duty of the judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution and that the naming of state bank receivers judicial function which cannot be exercised or controlled by the governor or legislature, the supreme court Saturday upheld the action of District Judge Carter at Gering in refusing to name E. H. Luikart, secretary of trade and commerce, as receiver for the Mitchell State bank, Irrigators State bank of Bridgeport, Lyman State bank, American State bank of Scottsbluff, Nebraska State bank of Bridgeport, State Bank of Minatare, and Bank of Bayard, says the Nebraska State Journal. The court, in an opinion written by Justice Rose, says that legislative act providing that the secretary of trade and commerce shall be the sole receiver of all insolvent state banks amounts to more than judicial proceedings, properly pending in court of equity for the liquidation of bank, than legislative recommendation to the judiciary to appoint him, as otherwise the enactment would be an unconstitutional encroachment on judicial power. Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. He appointed E. Torgeson, who had been assistant receiver under Bliss, on the ground that having had actual charge of the liquidation of banks he was in better position to serve all interests than Luikart, who must necessarily name some to handle their liquidation. The court points out in its decision that the statutes nowhere provide for the liquidation of state banks without invoking of the state, and the legislature has never granted to any executive officer, administrative board, department or tribunal authority to wind up affairs of banks without invoking the aid of the court. The law is that the secretary of trade and commerce shall report bank's insolvency to the attorney general, who shall ask the courts to name receiver, and then proceeds to tell the court that it shall name the secretary as receiver. Use of the courts for purposes of liquidation has been the universal practice both before and after the law under discussion was passed. The law-makthemselves provided for judicial liquidation. The court says that as the governnames the secretary and may retire him and name another, the effect of the law is to make it mandatory the courts to name whoever he names, and to modify the judgment of the court. Neither the executive nor the legislative pending cause, can change or modify judicial orders or lawfully require the court to do judicial order pending litigation does not hange with political fortunes or legslative executive appointments. The framers of the constitutions, state and federal, have adopted the plan of executive, legislative and judicial departments independent of each other. has been regarded by statesmen and philosophers as an outstanding advancement in the sciof government. Thruout the judicial history of the present systhe courts have scrupulously respected the prerogatives the other departments and extended the comity due governmental divisions of equal rank, but courtesy does not extend to the surrendering of judicial power.
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CARTER DECISIOIN BANK RECEIVERSHIPS SAYS POWER NOT VESTED IN GOVERNOR TO APPOINT RECEIVERS OF FAILED BANKS Act Unconstitutional Declaring that is the imperative duty of the judicial of to protect its jurisdiction the boundaries of power fixed the constitution and the naming state bank receivers judicial function which cannot be exercised controlled by the governor or legislature, supreme court Saturday upheld the action of District Judge Carter of this judicial district, in fusing to name Luikart, tary trade and commerce, ceiver for American Bank of Mitchell, Irrigators bank of Scottsbluff, Lyman State bank, American State bank Scottsbluff, Nebraska State bank Bridgeport, State Bank of Bank of Bayard. tices Paine and Day dissented. The court, in an opinion written Justice Rose, says that legislative providing that the secretary trade and shall be sole receiver of all insolvent state banks amounts to no more than judicial proceeding, properly pending in court of equity for the liquidation bank, than legislative recommendation the judiciary to appoint him, as the would be an croachment on judicial power. Judge Carter Named Torgeson Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. appointed Torgeson, who had been assistant receiver under Bliss, on the ground that had actual of the these sevbanks he was in better position serve interests than Luikart, must necessarily name some one handle their liquidation. The court points out in decision that the statutes nowhere provide for liquidation state banks withinvoking the judicial power state, and the legislature has granted to any executive board, tribunal authority wind up affairs banks the The law is that the tary of trade and shall port bank's insolvency to the attorney general, who shall ask the courts name receiver, and then ceeds tell the court that name the secretary as receiver. Use the courts for purposes of liquidation has been the universal practice both before and after the law under discussion was passed. The lawmakthemselves provided for judicial The court says that as the governnames the secretary and may tire him and name another, the fect of the law to make mandatory on the courts to name whoever he names, and to modify the ment of the court. Neither the nor the legislative department pending cause, can change modify judicial orders or lawfully quire the court to do judicial order pending does change political fortunes or acts executive ments. Can't Surrender Power. The framers of the constitutions, state and federal, have adopted the plan executive, legislative and dicial departments independent other. has been regarded by statesmen and standing advancement in the science government. Throughout the history of the present the courts have spected the of the other and extended them the due to divisions equal rank, but courtesy to the surrendering judicial power. Justice Paine, in his dissent, said that to back to the custom district judge appointing pendent receivers each county for banks will defeat the whole worked out the legislature. thought that the supreme court should the fact that disjudges in all other districts named He the plan has brought order out of chaos tends for speedy and While an officer the court justice thinks that the case presents just overlapping power in the twilight zone between departments. suggests that the judiciary cheerfully co-operate the end prompt, vigorous efficient by responsible person be effected in the interest of depositors. Franz Radke, counsel for the banksaid the cision given Saturday that effect sought for in be secured another change the statutes. believes not be necessary change constitution in have control of receiverships placed the hands of the Radke believes inconsistent for the state to set up an elaborate machine for the handling of receiveronly have the court say ship, ably would not effect changes any districts where judges have given their permission for him to act ceiver. doesn't make any difference personally,' the secretary plained, do this work without pay. handled in this office simplified manner."