The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-02-09
It MUST PAY INTEREST.
State Warrants Arc . Public Debt
and Draw Six Per
Cent
Decision OF the Supreme Court In
the Case Against Treasurer
Hickman.
Obligation to Pay Interest Upon h Prin-
cipal of warrants Arises by oper-
alton of Law.

Yesterday the supreme court rendered An
opinion in tho ease of n. B. Palmer ". II.
q. Hickman. treasurer OF the state, on .
motion Of plaintiffs attorney to strike out
certain exceptions in defendants answer TO
che complaint. The motion Of plaintiff IL
sustained and the effect thereof is that the
state warrants are 4 ''publie debit and
draw interest ut the rats of six per cent per
unnum until paid. The opinion 10 printed
in full. II is written by Chief Justice Blake.
the other justices concurring. Other
questions and objections raised BY de-
fendant's attorney we're not passed upon.
So far MS relatos to the question Of interest,",
Mr.. Palmer has won his case and also the
point that a specific appropriation is not
necessary to pay the interest on the war
rants, and that the principal and interest OF
the debit cannot be aggregated. The de-
cision is in full accord with those of the
hiphas Ut courts in tho land. Whether the
state treasurer will find a way to pay the
interest," or raise the question Of the legality
Of the v arrants remains to be seen. The
opinion 10 as follows: @
State o. Montana, ex rel. H. B. Palmer
VS.. r. O. Hickman, state treasurer. The
affidavit OF the applicants for this writ of
lnaNOaL8 SSxNA eA&h AA y WIN HAD0oA AoASA
18th. 1891, by the legislative assembly of the
state. which Appropriated the sum of $44,-
64s.I9, out OF all moneys in tho treasury
not otherwise appropriated. for the relief
Of persons named the rein; that there was
appropriated thereby for the Journal Pub
Itching company the sum Of $7,909.93 for
its claims for services; that tbs stats
suditor drew. March 2Sth, 1891, the follow
w. r~N1A~
said act: State OF Montana, Helena. Mon
tans, March 2Sth, 1S91-State warrant-Ths
treasurer will pay to ths Journal Publish
ing COMPANY. or Order, seven thousand nine
hundred and min and $500 dollars for
printing done and Furnished TO ths terri
preparation b. b.. lAl. Per decision OF
supreme court, rendered March %, 1891. out
Of any moneys in tho treasury not other
wise appropriated T. A. Kenny, state
auditor, presented for payment and regis.
tered 1891. State treasurer, ($7,909.93)."
That this warrant was then delivered to the
Journal Publishing company and by it pre-
seHtsd to said trsasursr; shat said warrant
wac then registered by state treasurer, and
not paid for want of funds; that there were.
funds sufficient TO pay said warrant; that
the afiant was thsn the owner and holder
Of said warrant and that the SAID treasurer
offered to pay the atiiant the sum OF ST.
9O9. 93, the principal sum in the warrant,
und refused to pay any interest thereon.
The PRAYER il for . writ OF mandats com
manding the said treasurer to pay the in
terest on said warrant from March q. 1891,
at the rate of six per cent Per annum.
The answer of said treasurer among other
avsrments, says, that there :aR not been at
any time any moneys in this said treasury
which have bssn set apart or Appropriated
to pay the interest on zaid warrant; that
respondent deniss that the last legislature
set apart OF appropriated any sum or sums
of money to pay the interest on the warrant
owned BY this %relatsr. or any other person,
or at all; that resistant further says that
said claim 10 presented by this relator for
interest has mos been presented to tho state
board of examiners of said state for ap-
prevail, and has not been audited by said
board. The applicant flee q motion to
strike out from the answer ths last two
paragra phs which are quoted at length.
DisregardinR some questions Of practice
which have been urged by counsel. We are
called upon to consider and decide tho
Leading and important inquiries:
Is tho relator entitled to recover interest
upon his warrant, without al express ap-
preparation for this purpose. by the legisla-
tive assembly?
Should this claim for interest be sub
mitted to the state board Of examiners?
1t will be necessary and proper, to review
succinctly the legislation of the territory of
Montana. upon the subject and observe
carefully the conditions which prevailed
whe1. this trainers of the constitution met.
The first legislative assembly convened
Doc. Il, 1864. and an act to provids for the
proved Dec. 26, 1864. The 9th section was
as follows: That all territorial warrants
issued by the prop er authorities of the ter
ritory shall draw interest at the rate of 10
per cent per annum, from and after the
date of their presentation, until there ar
fpnLc IN ra y caj6 wHrrapta in thA banda oF
the treasurer
These provlslons ware amended from
time to time, but interest was always paya-
BILE on territorial warrants. which were not
pnid upon the date of their presentation.
When the constitutional convention met in
July. 1889, the 2sstutcs relating to this sub
ject were in the following form: That all
territorial warrants issued by tho proper
authorities of this territory after the first
day of March. A. D. 1881, shall dIaw inter
est at the rate OF six per centun per amman
from and after the date of their prsssnta-
tlon until there arc funds to pay aaid war
rants in the hands OF tbs territorial trsasu.
rer." (Ssc. 1923, Comp. SITS. 9Th div. .'Ihc
treasurer shall quarterly post upon the dool
of hls office and publish III some newspaper
published at the seat Of government, a list
OF all warrants that he may have funds il
tha treasury to redeem or pay, the payment
of which has not been demanded during
the quarter last; and from the date of sucl
HOtIGS tHS lDLcTHSb on Ill kuOH warrant!
thus posted shall cease; but the treasurer
shall hold IN readiness such moneys to pay
such warrants upon presentation (Seo
100, Comp. SITS. 5th diy.). A act to pro
vice for the funding OF the debt of Mon
tana ter itory" was passed December 3rd
1867, and the first section authorizes thu
treasurer to issue bonds for "all territorial
warrants outstanding and unpaid at a Ger
tain time.
Statutes of like import were enacted /,
1872 and In 1878. In July. 1889, there wa
no territorial debt of this character. Tn,
financial policy of the government of tn,
territory which had been established at Al
early period of it's history WAS never altered
in substance and was familiar to the max.
ers of this constitution. What was thai
action with reference TO these matters
They ordained that: "All laws enacted b,
the legislative assembly of the territory O
Montana and in force at the time the stat,
shall be admitted into the Union, and no
inconsistent with this constitution or law
of the United States Of America, shall b.
and remain in full force az the laws of tn,
state until altered or repealed, or unit
they expire by their own limitation; pro
vided, that whenever in said laws tn
words territory Montana territsry
or Territory of Montana occur, tn
words state or state of Montana shal
be appropriately substituted and rsa
therefore," (Seo. 20. Sec. ~.
Is there any language i'll the constitntio
of the state which is inconsistent with tn
foregoing section of the compiled statutes
Tha laws suprx were enacted Inv laris,,