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STATE'S RIGHTS QUESTIONED IN APPEALED CASE Bank Receiver Claims South Dakota's Preferential Claim Is Invalid Pierre, S. D., Jan. challenge to the sovereign rights states when they nga;:e proprieis embodied enterprise record tary which been settled in the United States district Court for appeal to the federal circuit court. The invol claims totaling $616,000 by the Rural Credits board of the state South Dakota on the National Bank of at Pierre, whose failure followed by the conviction of its presidert, Ewert, also of rural credits board, charge embezzling This has been appealed to the supreme court of the state for February 16. oral arguments whole affair has mixed with South Dakota politics for several years. State Given Preference In the civil litigation which came up yesterday, the state has been the ordinary given the closed bank. of United States district the hand in the bank when cash on besides as creditor for the balance its $616,000 deposit. Charles Fiman, receiver for the bank, took the appeal. The predication of the receiver's appeal that the rights of the state to be sovereign and are cease greater than the rights an vidual when the state acts in that it capacity then be estopped from claiming rights against illegal sovereign deeds of its official. as may acting for it in the private enterJames D. Elliott ruled Judge when the against suit instituted by Buell torney general, heard in federal district court. ruled that state could not be estopped by illeacts any more than added that ratify (Continued on page two)
