The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1884-10-11

|
, stitution and law. invest the principal of the
permanent school fund in the United States
three C3) per cent bonds? If so; can they pay
school fund? Or will the board in paying
such premium be compelled to draw from the
permanent school fund therefor?
Second-Can the board in purchasing high
rate of interest registered county bonds de-
tach coupons therefrom so that the remaining
coupons will net the state six (6) per cent from
the date of purchase to maturity?
Third-Have the board after purchasing
United States three (3) per cent bonds for the
permanent school fund the power under the
rate of interest registered county bonds?
Respectfully submitted,
A. G. KENDALL, Com. p. L. and B.
E. P. RoGGEN, Secy. of State.
| ISAAC POWERS, Atty. Genl.
JAMES W. DAWES, Governor.
Members of the board of educational lands
and funds. Treasurer P. D. Sturdevant,
| dissenting.
Upon presentation to the honorable supreme
| court of the questions above written, it was
| suggested by the judges thereof, that the at
torney general appear with snch legal propo-
| sitions. ss he might deem fit, and that the
| board of educational lands and funds, might
| file with said court the facts concerning, and
| reasons which called for action of the court,
whereupon the following communication was
prepared and presented, tO-wit:
To the Honorable the Supreme Court of Ne
| braska: We, the undersigned members of
| the board of educational lands and funds of
Nebraska, having Joined in request to your
honorable court TO answer certain questions
heretofore submitted, with reference to the
Investment of the permanent school funds of
this state, beg leave to submit for your infor-
nation the following state of facts, and con-
illusions leading to the submission of the
aforementioned questions to your honorable
court:
1t appears from information filed with said
board, by the state treasurer, whose duty 1t is
to apprise the said board of the amount of the
permanent school fund on hand, and unin-
vested, at its monthly meeting on the second
Tuesday of each month; that since about
March, 1882, there has been accommodating in
the treasury money belonging to said perma-
nent school frlnd in excess of the amount the
board OF educational lands and funds have
been able to invest in securities offered it.
That on November 80, 1852, there was a sur
plus of permanent school funds amounting to
$l36,S7551. 1t further appears that, though
the said board have endeavored to invest said
permanent funds in such securities as they
could approve, there is now on hand, and I'M
invested, the sum of about s1S6,000; being
a gain over investment of $4,000 in one year.
From the business of the land department in
the past, we are able to judge that during the |
next three months there will be received by |
the state treasurer large sum belonging to |
said permanent school fund, estimated by |
those competent to know at from $4,000 to |
100000.
And we further represent, that in our opin-
Ion, we shall be unable to invest the said |
amounts in registered county bonds of this
state bearing six per cent interest.
We believe that the accumulation OF such
large sum of money in the state treasury,
bearing no interest to the temporary school
fund, is of sufficient necessity to warrant us
In propounding the questions heretofore sub
gently request consideration upon your part,
that possibly may enable us to invest said
funds that the school fund shall derive every
benefit possible.
At the request of members of this board the
attorney general will appear in person. or in
writing, with such legal propositions as he
Respectfully submitted.
A. G. KENDALL, {
President Board Educational Lands and
Funds. !,
E.P RoGGEN
Secretary Board Educational Lands and Z
Funds.
Answering the foregoing questions the I
.onorable supreme court replied as follows: /
70 the Honorable Board of Educational )
Lands and funds: :
GENTLEMEN: Deeming an answer to the =
uestlons propounded by you In your COM 8
Of the 18th inst, respecting the Z
Investment of permanent school funds of this 4
tate, not inconsistent with our duties, we /,
ubmit the following:
To the first question, taking them in the Or h
on are clearly in authority, under the Sec r
ons OF the constitution and statute to which n
gu refer, to invest those funds in United ii
tates per cent bonds If you deem it advis- "
Bile to do so. The doubt you mention of your m
ght to invest in these per cent bonds was @
rompted, very likely, by the low rate. of in d
lso in section 20 of the act of February "a. n
S3, relative to investments in 'high rate in
rest bonds" OF counties which cannot be
ade so as to net "a lower rate of interest
ian per cent per annum." But this re-
rict'on extends at most only to the purchase
county bonds, and evidently has no refer to
ice whatever to investments in United h,
ates and state securities. ~
AS TO the payment of premiums, IL they be III
'cessary in the purchase of United States ell
mt school fund, for there is no authority ~
r making them out of any other. The only ty
SEES in which premiums can be paid out of tn
sob. 81 of ~.
stments, in "high rate of interest" county To-
nds. as provided in the above mentioned ia
elton, and even these, but for this special St
DIVISION. would have to be made out of the ia
rmanent fluid. The payment of premium of
making an investment when the market Br
lue of the security purchased iustifes and ka
luires 1t, is a legitimate use of the money Pa
part of the investment, and does in no of
nse violate the constitutional provision that &c
Is fund shall remain forever inviolate and co
Investments of this fund in any of the Sc in,
rifles permitted by the constitution, wheth- Tn
at their par value, or above or below it, al thu
)ugh made in the reasonable hope of an adj COZ
nee In their market value, and consequent an
In, must necessarily be at the hazard of a ed
preciating and consequent loss. Within the An
trfction of the constitution, which limits pa
,se investments to United States bonds, the -
' leaves them entirely to the Judgment Of
Ut honorable body.
o the second question we answer no. | n
lile so far as we now see, purchase of o ~
gh rate of interest" county bonds, in the Z
ue suggested Dy tne question, might pro- tOu
&c substantially the same result as would he,
I designated by the statute, it is different; ia'
where the legislature in precise terms tru
re specified the means by which to reach a GAG
ired end, whose means should be used. By hi hi
ng the means provided there is absolute ori
ETY. of action; while In adopting and using his
= other there is not. The mode of paying he
miums required in the purchase of this oo..
of bonds, the statute provides. must be cur
m the temporary school fund, and this a p
uld be followed. tho
'ne Iniru ouesuoh we answer no. Inc Onl
bor,tv oiven tv tho sto+,,+o 70 +ho hoord q, wit
NV ~ 5irect i1vastnents % tba u ,o ou 90 Ger
ID In certain specified securities, not to thn,
1ritv 70 anotber If tbo ia@isIatora had phr
,nded that auoh obanoa ,,,ioht he m.da and
htiess the 6owar 70 maLae tho NJ w"~'u,id NIT,
q heen cina ~ nSnrassad nd not Ia ~ 20 is tr
led construction of the statute. Where,
ever, securities In which investments
e been made mature and the money is re-
ned to the fund, it is then within the con- A
Of the board for REIMBURSEMENT a., N
Very respectfully, =" "
GEORGE B. LAKE, Chief Justice. torn