The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-06-30
TO AMEND CONSTITUTION.
Mr.. Crane Gives Reasons Why Bonds
Should BE Validated.
VALUE WILL HAVE TO BE MADE COOP
By the whole stntc II the Counties
BENEFITED Are Not Compelled to
Repay the Loans.

Austin. Texas, June 29.--Attorney Gen
eral NJ. NJ. Crane today handed the fol-
lowing to The Post correspondent;
On the Sd of next August there Will be
an election held for the purpose of deternl-
ming, among other things, whether article
NJ OF the constitution of Texas shall be
amended by adding thereto section ~,
which in substance provides that all the
bonds heretofore issued by the several
counties OF Texas for the purpose OF the
erection of court houses and jails aud tor
the purpose OF the construction of bridges
that have been purchased by the proper
authorities of the State OF Texas as an IN
vestment FOR the permanent school fund
of The STATE. and that at the time OF the
creation of said debt evidenced by said
bonds provision for the levy of a tax for
the payment OF the interest and the crea-
ton OF sinking fund was not made, shall
net for that reason be held invalid but
said bonds are hereby validated, and are
hereby made valid debts against the sov-
eTal counties by which they were iSsued
The necessity Tor the above amendment
arises out OF the following facts: Section
I. article ri. OF the constitution provides
manner by any city or county unless pro-
vision is made at the time of ,roa.iAg same
for levying and collecting n s'i3ficiint tax
to pay the interest thereon and provide at
least per cent as sinking lind, lhAt
provision Is believed by many to be limited
in Its application To coast counties, ard
for the purposes named in that section. The
supreme court has never iirectly passed
upon the question. but has held that it, III
connection with another provision OF sim
liar Import. in respect 10 cities, requires "A
written statement III the minutes OF the
city council or of the commissioners court
issuing the bonds when the debt is created,
10 the effect that tax VIII be leyied SUI
ficient to create a sinking fund and pay
the interest on tho obligations as they
mature. The profession generally uhder-
stood this INTERPRETATION TO mean that this
entry must be male in the minutes at the
date when the bonds We're direc'cd to be
issued. The supreme court, however in
recent case going up from Navarro conn
ty, held that the provision mentioned
must be made at the time the original con
tract is made. rather than on the date
when the bonds should be directed to be
issued
| The board of education in the mean
| time. had invested the permanent school
! fund OF the State in county bonds. some OF
| which had no provision made 10 pay the
| interest nor 10 create sinking fund at
! the date when the original contract was
| entered into but for which abundant pro-
| vision was made at the late when the
| bonds we're directed to be issued. The case
| Of the state of Texas VS.. Nolan county
was believed to be authority for the ,otirs.
/ followed by the board OF education. ii is
| not my purpose here. however, 10 discuss
/ the merits of the decision Of the supr' me
| court. That would be nanifestiy ilnproper
! under almost any circumstances In state
ment of this sort, and particularly as a
. tnp frr- 1si,tg in
| that case. but which viii n7t be passed
uDon until after tho election On tb-
| amendments referred to. If tue court ad
| heres 10 it's former decision, the result Will
| be that all If the bonds in which 40 ITo-
| vision was made in the orr siual contract
| for the payment of interest or tie creation
| of a sinking fund will be he'd Void 7 he
amount of these bonds the State viii then
| be required to raise by taxation. pnl lfy
| into the permanent school fund. (see con-
| stitution. Art Y, Sec. Az
No good reason can be given, either in
| law or morals. why the whole State should
| be compelled to bear this burden. aud the
counties borrowing the money from the
| State school fund get the entire benefit of
| 1t. In other words, these counties got the
| money for the purpose of building their
| court houses. iails and bridges. and should
| be REQUIRED to refund it with accumula led
| interest.
| AS to the power o! the State to validate
| ny constitutional amendment bonds void
| for no other reason than that this pro-
| vision Of the constitution was not complied
| with. that Is not believed to be an open
| question. 1t is an elementary rule that the
legislature NAV validate any act which 1t
! could have originally authorized. IL must
also follow. then. that the people in their
/ organic capacity, may validate by con-
| stttutional amendment anything that they
! could have originally authorized That
| they could have authorized bonds to be is
sued without this provision in the min
| utes of the city council or commissioners
| court. Is quite clear. This proposition
seems to be well settled. Gross VS., ms.
Co. 10s U. g.. 477.)
This view was taken by the legislature
and bv Hon. X. II. Ward, chairman of
| Judiciary committee No. 1 of the house
| VINO introduced the joint resolution al the
| suggestion Of this department. From the
| fact that the attorney generals department
| is charged with the duty of conducting all
litigation that may arise in reference TO
these bonds whether the Investment was
made during this administration or some
previous one l deemed it my duty 10 call
| the attention Of the members Of the leg!s-
lature to the condition OF the bonds above
mentioned. and. at the rellest of Judge
Ward. to draft the resolution in aues-
ton For the same reason have
| thought 1t not Inappropriate to submit the
above observations TO the public SO that
attention may be directed TO the scope az
the amendment In question and the pur-
poses which IL was designed to subserre
think it should be adopted s,allar
amendment In reference to bonds IN which
the county school funds were invested
was also passed and viii be voted on at
the next general election.