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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."
