Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1903-08-10
POINTS FROM COURTS OPINION
Main Points in the Opinion OF the Supreme
Court which Holds as Invalid the lnsti-
tuition Bonds Authorized by the Last
Legislature.


composing some 40 typewriter pages.
After discoursing at some length the
conditions under which the bonds
we're carried, the court says:
This case presents but single
question for determination. That
question is, whether the board Of uni
versity and school lands may lawful
ly, under the enabling act and under
the state constitution, purchase these
bonds as an investment for the per-
manent school fund. If it may law
fully do so, the treasurers refusal to
pay the warrant was without legal ex.
cuse and he will be coerced by man.
damus to pay the same. If, on the
other hand, the board is without law
flu authority to invest the permanent
school fund in these securities it will
be conceded that the treasurer prop
erty refused to pay the warrant and
the writ must be denied. While the
question of the legality of proposed
investment is the decisive question in
the case. it's determination depends
upon the solution of certain preliml-
nary questions, namely: The char
acter of the bonds proposed as an in
yestment; the character of the fund
proposed to be invested; the limita-
tions upon the authority of the board
of university and school lands and of
the legislature over the same; and
finally the constitutional limitations
upon the power of the legislature to
contract debts"
The character of the fund is first
taken up. and after an exhaustive con-
sideration of the character of the pub
lie school fund the decision says:
1T is entirely clear from the provi-
sions of this enabling act just quoted
that the entire grant of lands to the
state for educational purposes was in
trust, and that the express terms OF
the grant require the state as trustee
to maintain the permanency OF the
funds so granted; and further, that
it limits the state to the use of the
interest of the permanent fund and re
auires that such interest shall be used
only for the support of schools
The provisions of the constitution
relating to the land grant and the
trust imposed are then considered
and emphasis is placed on the invio
liability of the grant and the fund ere
ated from it, this portion of the deci
sion containing the following excep
ton:
What we have said in reference t6
the limitations imposed by the enab
ling act and the constitution upon the
power of the legislature, has no ap
plication to what is known as thu
capital land grant The funds de
rived from this grant are not required
to be kept permanent; on the con
i trary. under the terms OF the grant
they may be used at such times AM
in such manner as the legislature ma
determine. This grant was made ea
pressly for the purpose OF erectin
public buildings at the capital 10
legislative, executive and judicia! t':
poses.' (Sections IL and II Of the eI
abling act.) The only limitation W
on the power of the legislature is tina
the proceeds of this grant shall
used for the purpose for which 1t wa
made, to-wit: the erection OF built
ings at the capital"
Then follows q description OF tn
constitutional provisions for the a.
ministration of the fund and the lin
tation Of the classes OF investmeI
rermitted. also q description OF III
provision limiting the Indebtedness
the state to 100000. The court the
takes up the character OF the bono
which it is proposed to issue, shown
that being neither United State
bonds nor farm mortgages. to be leg
they must be school corporate
& bonds or state bonds. The first pro
n osition is disposed Of. the gist OF II
B opinion being as follows. the Vallf
Il City bonds being used for purposes
81 illustration:
q Judged by this test it will. v
& think. be readily seen that they a
B state obligations masquerading In Il
q name Of normal school bonds. Tn
8 must be true If they have any validi
Il whatever. for bonds Of the state nc
q NAL school at Valley City are leg
q impossibility. This institution 70 u