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Banking Law Keyed to Carnell, 7th Ed.
Schaake v. Dolley
Citation:
118 P. 80 (1911)Facts
In May 1911, the city of Abilene, Kansas had three existing banks—two national banks and one state bank. On May 20, an application was filed with the state charter board for incorporation of a fourth bank, to be known as the Commercial State Bank. Five days later, on May 25, the plaintiffs filed an application for incorporation of a fifth bank, to be called the Central State Bank. The charter board approved the first application but rejected the plaintiffs’ application after determining that there was not sufficient business in Abilene to support five banks, and that the public necessity did not justify establishment of a fifth bank. The plaintiffs sought a writ of mandamus, arguing that the right to engage in banking is a common-law right that cannot be restricted by the legislature, and that the statute authorizing the charter board to deny applications based on public necessity violated their constitutional rights to liberty, property, and equal protection of the laws.
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