The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-09
CAPITOL COMMISSIONERS RECEIVE
CASH FOR THE FIRST ISSUE
OF CERTIFICATES.
THEIR VALIDITY UNDOUBTED
ATTORNEY GENERAL CHILDS
WRITES CAREFUL OPINION
ON THE SUBJECT.
THE CONTRACTORS, ATTORNEYS
Added Their Endorsement to- It-In-
terview With President Upham
About Them.

The First National bank yesterday
accepted the $4,000 issue of the GER
tif1cates Of indebtedness of the state
board of capitol commissioners, and in
payment for them passed over cash
ier's check for their face value, to-
gether with the premium, amounting
to $509S0
If there has ever been any real ques-
ton as to the validity of these GER
tificates, this would seem to effectual-
ly settle it. The delay since the GER
tificates were signed was occasioned
merely by the requirement of the bank
for an opinion from the attorney gen
eral as to their legality, and when this
was furnished and was passed upon
by the banks attorneys, Young &
Lightner, the transfer was promptly
made.
H. p. Upham, the president of the
bank, in an interview with a reporter
for the G o e, said:
There was never any doubt of the
legality of the action of the capitol
commission in issuing these certifica les,
nor of the validity of the certificates
themselves. All the talk of the Min
neapolis papers to the contrary was
idle. Nevertheless when we purchased
the certificates we stipulated that ac-
companying them should be written
opinion of the attorney general as TO
their validity; you see we might want
to sell them and the purchasers would
want this Endorsement.
There was no hurry about the mat
mediate need of money, and as the
attorney general had other matters of
business to attend to- he took his own
time to prepare the opinion. When we
received it, we turned it over with other
matters to our attorney and received
his opinion this morning, indorsing
that of the attorney general, and the
money was promptly paid over.
These certificates, you understand,
are merely in anticipation of the tax
levied by the state for the purpose of
raising a fund to build the capitol. This
tax will run for ten years, but as
the money will be needed sooner than
that, the legislature authorized the
commissioners to borrow it on the
strength of the tax and to issue the
certificates"
Messrs How & Butler, the attorneys
for the Butler-Ryan company, the con-
tractors, also went carefully over the
attorney generals opinion and added
their Endorsement to it. The opinion
is as follows:
To Charming Seabury, vice president of the
board of capitol commissioners:
You inquire whether the board of state
capitol commissioners is authorized to issue
certificates as provided by General Laws 1897,
chapter Sc.
The question should certainly be answered
in the affirmative. unless the issuance OF such
certificates would constitute the creation OF
a debt within the prohibition OF the consul
tuition. There are authorities tending to the
effect that certificates of such nature are
evidences of Indebtedness within the consti-
tutional meaning but the following authorl-
ties clearly support the opposite view.
The supreme court of this state has re-
Gently held that a standing appropriation
covering a period of ten years is valid ex-
ercise of legislative power.
The act of 1897 does not assume to authorize
payment otherwise than as provided by the
original appropriation act. The certificates
recite that on a given date the holders there
of will be respectively entitled to receive
from the state treasury tie sum therein
named. They show on their face that they
are drawn pursuant to the various acts of
the legislature relative to the erection of a
capitol building.
No money can be procured from the state
except as it shall accrue and be available,
pursuant to said appropriation act, and no
debt can be incurred either under tie con-
st:tution or the said legislation prior to the
time when the appropriation is available.
This is in perfect accord with the view of
Justice Field in State vs. McCauley, 10 CAL,
430, followed elsewhere. 1t is there held
that a debt is not evidenced by such a trans
action.
The holders of the certificates take them
with no other reliance than that the same
will be paid from moneys accruing from an
appropriation which the court has pronounced
valid. No higher moral obligation is thereby
incurred by the state land the obligation of
the state is in sny event only moraD than
If some patriotic citizen had voluntarily ad-
vanced the necessary funds anticipatory of
the revenue.
Would any one contend that debt was
thus created within the meaning of the con-
stitution? The certificates amount to little
more than mere memoranda indicating the
names of the parties making the advances
and when they will be entitled to reimburse
ment Not cent additional to that author
lied by the original appropriation is to be
paid, and no conceivable injury will result
to the state. The fact that interest is to
be paid upon them does not affect the ques-
ton.
1t is a fair construction of the constitution
that it is not violated by the issuance of
such certificates and your question is there
fore answered in the affirmative.