Devils Lake inter-ocean. (Devils Lake, Ramsey Co., Dakota [N.D.]) 1884-1905, 1903-08-21
FRIDAY, AUGUST 81, 1908.
Somuch comment, both favorable ano

SO much comment, both favorable and
unfavorable, has been made on the re-
cent decision of the supreme court
on the bond question, that so far this
paper has remained silent, recognize
ing the fact that nothing that could be
in criticism or otherwise of the
decision would in any aun change
the result or modify the effect.
There is no court in which the case
be reviewed. The decree has be-
come a part Of the law of the state,
and whether right or wrong, must be
respected. The view of the court was
that chapter 40, of the laws of 1908, is
unconstitutional. in that it is in con
hict with the enabling act of congress
as we'll as in conflict with section 1862
of the state constitution. Both of
these fundamental laws are supreme
over the acts of the Legislature. And
If the latter is in conflict, it is clearly
unconstitutional. Section Is of the
act provides that five per
gent of the net receipts of the sales of
public lands in the state shall be paid
to the state to constitute a permanent
school fund, the interest alone of
(which shall be used. Section 1862 Of
the constitution provides. however,
that the principal of this fund may be
Invested in certain kinds Of secureties,
among which are bonds Of school cor
porations within the state, and bonds
of the state of North Dakota. Here
lis the contention. 1t is commended
that the bonds authorized by the act
OF the Legislature at the last session
do not comply with the conditions Of
"sither Of these classes. That the state
normal school at Valley City is not a
legal, entity or a school corporation.
And that therefore the bonds are not
those Of a school corporation. But
that an attempt was made to make
them the bonds Of the state, and that
in SO doing the debt limit of 5000, 600
provided for in the constitution was
exceeded and the bonds were illegal
and therefore not the bonds of the
state. That these two things being
true the state treasurer could not in
vest the principal of the permanent
school fund in them without violating
the provisions Of the constitution
specifying what securities shall be
Invested in. The contention in favor
OF the use of the funds for this pur-
pose was that the Valley City normal
school was a school corporation and
the bonds were those of this corpora
tion, and that the debt limit does not
apply. To layman it seems that
Ehe language of the section 906 of the
code is broad enough to pass the
rights Of the state in the school to the
board of management. 1t provides
that all the funds arising in the sew
.eral manners provided by law are
pledged for the maintenance Of the
. school. It does not, of course, say
othat the board of trustees are a cor.
Tporstion and as such has the power
to sue and be sued. But certainly
the language is enough to allow d
different CONSTITUTIONAL. 1t was GER,
-tainly the toss Of a Penny to decide
zone way or the other. Had this beer
held otherwise, the institutions could
have proceeded with their work with
out hindrance. But there seems to b.
but one way around the decision. ani
that is to amend the constitution 81
rs to permit a larger state debt. Thi
is certainlyn a proper thing to do, a
the present limit is entirely too Low
rfor a large and wealthy state such a
North Dakota has become. But tina
process is far too slow to reach tn
present needs. The arrangements o
the institutions effected acted in goo
faith and some remedy should be az
piled that will enable them to carr
~out the present plans The constitu
<tional construction of the law de
~ceived many of the ablest lawyers an
would certainly deceive the laymar
The constitutional amendment is a.
light, but it is far too slow.
Dollar wheat means much to tt
farmers of North Dakota. There hs
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