The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1901-11-01
CANNOT INVEST
PUBLIC FUND
IN WARRANTS
Legislature Has Given No
Authority for This Action
STRANG'S OPINION
In Answer to Question of
Treasurer Rambo.

eral Strang today rendered an opinion,
asked for by Territorial Treasurer Rambo
on the investment of the public building
fund of Oklahoma in five and six per
cent warrants. bearing interest and
drawn against the general fund of the
territory. The opinion is as follows:
Territory of Oklahoma,
Attorney-Generars Office,
/ Guthrie, oct. 81. 1901.
/ Hon. c. c. Rambo, Treasurer of the Ter
ritory of Oklahoma, Guthrie. O. T.:
Dear Sir:-Your re quest for the opinion
| of this office in relation to the invest
ment of the public building fund of the
/ territory, in territorial five and six per
/ cent interest bearing warrants, and
4 drawn against the general fund Of the
/ territory as provided by chapter 25 OF
/ the laws Of 1901, is now before me.
/ BY act Of congress, approved March 5,
1898, ratifying the treaty with The Chero-
kee Indians. the president Of the United
States was authorized to make such re-
/ servations of lands for public purposes
as he should deem wise and desirable.
BY proclamation made the 18th day of
August. 1898. opening the Cherokee outlet
TO settlement, the president OF the United
States reserved, in addition to the reser-
walton OF sections Is and IS for common
school purposes, section IS in each town
ship for university, agricultural college,
and normal school purposes. and section
80 in each township for public buildings
subject to the future action Of congress.
BY act of congress, approved May 4,
1894, the reservations of sections 13 and
SO, as provided for the presidents pro-
clamation as above stated, were ratified.
This act provides that the legislature Of
the territory may prescribe regulations
for leasing said lands, together with
sections 16 and Ss. It also provides that
until such legislative action, the COVER
nor, secretary Of the territory, and su-
perintendent of public instruction shall
constitute board for the leasing of said
lands under the rules and regulations
heretofore prescribed by the secretary Of
the interior for the respective purposes
for which the said reservations were
made.
AS the result of the above legislation.
including the proclamation named, sec
tion 80 of each township in the lands
opened by said proclamation. as well as
in the lands opened under and pursuant
TO act of congress approved June 9Th,
1900, and a supplement thereto approved
March 3. 1901, is reserved for public build
ings of the territory of Oklahoma and the
future estate thereof.
1t viii be seen that the board for lcas-
ing school lands was given authority by
the act of May 4, 1894, to lease sections
80 reserved for public buildings for the
purposes for which said reservations
were made. The school board was there
fore authorized to lease said sections 30,
and the money derived therefrom, under
the law. constitutes a fund TO be held for
public building purposes that is for the
erection of public buildings in the terri
tory or future state of Oklahoma The
legislature of the territory by chapter .
Of the laws of 1901. proposes TO divert this
money to the payment OF the general in
debtedness of the territory OF Oklahoma.
While the act Of congress approved May
Z. 1891, gave the Legislature authority to
enact regulations for the leasing Of said
lands, 1t did not, in my judgment, au-
thorize the legislature to divert the
money in the public building fund to the
payment Of the general Indebtedness of
the territory OF Oklahoma. IF the legis-
lature had possessed the power to divert
said funds and TO aathorize its invest
ment in warrants drawn against the gen
eral fund OF the territory. the act known
as chapter . of the laws of 1901. failed to
provide a law under and pursuant 70
which the said building fund could be
practically invested in general fund war
rants OF the territory The act provides
that the treasurer shall purchase the out
standing general fund warrants Of the
territory in the order Of their presenta- I
ton and registration as shown by the
official records. or as may be shown by
such records II the owners of any such
outstanding warrants shall present them
for registration in the future.
The late governor, the Hon. c. NJ
Barnes, the then territorial treasurer. T. /
NJ Thompson. and myself took this sub !
ject up Immediately after the adjourn /
ment Of the legislature last winter. The
said governor and treasurer were anxious /
to comply with the intent % said chapter
The entire force OF help Is efficient I
q shown by the good general condition /
Of the institution.
Relative sof the inmates visit the asy- /
lum III ary tirae and no restrictions are (
placed on correspondence between in Z
mates and relatives. Very respectfully /
yours, &c II. PHILLIPS.
&C. r. M-kEERT
"E E. COwDRIcK"