The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-03-22
BUTTE News.
IT'S FORBIDDEN BY LAW
The Aetna Company Has Made
Another Offer.
FOR THE SINKING FUND
County Attorney Connolly's Opinion
Given at the Request of the County
Commissioners = The Law
Cited in the Case.

. 1t appears that the Aetna Savings &
Trust company of Butte has not yet
abandoned its efforts to get possession
or the county sinking fund, and the
commissioners submitted the company's
ly. who yesterday sent the following
opinion to the board, holding that the
fund could not be loaned out:
Hon. William D. Clark, chairman CT
the board of county commissioners
Dear Sir: In reply to your request for
an opinion as to the power of the board
of county commissioners to loan money
OF the sinking fund, created for the
purpose of paying the accruing interest
and the principal of the outstanding
ponds OF Silver Bow county, / beg to
say that I do not think the law per-
mlts such disposition of the sinking
fund.
Section 4247 of the political code of
Montana, is as follows: The board is
suing bonds under the provisions of
this article must, annually, at the time
OF leVylng taxes. levy upon the taxable
property in addition to all other taxes,
sum sufficient to pay the interest on
all bonds issued under the provisions
OF TINS article, as the same becomes
que, and also sum sufficient to provide
Tor the redemption of the bonds as the
same become due, or are called in for
payment, according to the conditions
thereof, and such tax when collected
must be set apart in a fund known as
the bond fund, and used for no other
purpose than the payment of such
bonds and interest accruing thereon
: section 4194. of the political code If
Montana. is as follows: No county
mn frt1
of, or make any donation or grant. by
70 subsidy or otherwise, to any individual,
association or corporation, or become a
subscriber to, or a shareholder in any
company or corporation, or a Joint own-
Z" err With any person, company or corpor~
sation'
- q think a compliance with the nro
visions of the proposed agreement sub
mtted by the Aetna Savings & Trust
company would be a violation of these
provisions. The proposed agreement
recites that the county of Silver Bow
shall pay over the money now in the
sinking fund to the said company and
snail pay additional amounts in INSTALL
ments quarterly until the full amount
due upon the issue of 1925 900 of Silver
sBow county bonds shall be compile. e:
that thereupon, and at the time the said
bonds become due. the said company
shall turned over cancelled to the coun-
" the satd issue OF S125,O0O of Silver
Bow county bonds. The company fur
ther offers to deposit with some party
to be named as trustee to secure the
z performance of the conditions of the
agreement real estate mortgages to
rathe amount of twice the sums so
paid. and to be paid, by the county to
the said company. one-half of which
said mortgages shall be upon real es-
tate situated in Silver Bow county.
The presumption naturally would
be that that the company intends to
hvpothecate these mortgages at once,
although the agreement is indefinite to
this particular point.
TT seems to me that the proposition
resolves itself into loan of the sink
ing fund to third party, which said
loan shall be secured by real estate
mortgages. Undoubtedly, if the coun-
ty can enter into this agreement. then
it is at liberty to use the funds of the
county which are expressly set aside as
trust for the payment of the bonds
of the county and which the bondhol-
ders expect shall be held in trust invio-
late, by loaning the same to any one who
shall offer the highest rate of interest
or use the said fund in any other way
"a that the discretion and Judgment of the
commissioners might dictate without
regard to the plain provisions of the
lar