The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-07
NORTH DAKOTA
.SUSTAINS MCMILLAN
Bonds of 100000 for the Improve
ment Of State Institutions,
Held to Be Void.
Status of Like Bonds Paid in Past
Years Now Becomes Fine
Question.

Bismarck, N. D., Aug. 7-As stated in
Thursdays issue Of Z h e J ourna the
supreme court, in an opinion written by
Judge Young, in which all members Of tbs
court concur, holds that some 100000
of bonds, based on lands granted to state
institutions by congress, are void. The
bonds involved are those of the state uni
versity at Grand Forks to the amount Of
$3.50, 900; those of the agricultural college
at Fargo, amounting to $4,000; those of
the nodmal schools at Valley City and
Mayvie, amounting to 100000 each, and
those of the state deaf school at Devils
Lake to the amount Of 100000. The state
insane asylum, the stae reform school
and other institutions are affected for
smaller amounts.
The authority to issue the bonds was
granted by the last legislature for the
purpose of erecting necessary additional
buildings and making permanent improve
! ments. The state board of university and
school lands purchased the bonds with
moneys in the permanent school fund Of
| the state. State Treasurer Mcmillan
thereupon refused to advance the money
| on the purchases, and an action was
brought to mandamus the state treasurer
and compel him to pay the bonds. This
action, under the decision of the supreme
court, will not lie, and the bonds are de-
clared void.
Every community where there is state
educational institution is deeply interest
ed in the case. In some instances thou
sands of dollars Of funds have been an
ticipated. The state university alone has
some 100000 of warrants out that We're
expected to be paid from proceeds of these
bonds. Many contracts for the erection
of buildings have been let, which are now
invalidated by the courts declaration with
reference to the bonds.
No declaration is made by the court
with reference to the $100, 900 of bonds
authorized for the erection of an addition
to the state capitol, except that these
! bonds are not subject to the same limita-
tions other institution bonds. for the
direct sales of capitol lands may be ap-
) piled to the erection of buildings for adj
ministration purposes. This, it is be-
believed, will permit the carrying out OF
the extensive improvements planned for
the state capitol. All other institution
: buildings will lhave to await some other
means of raising funds, - -
I In past years several hundred thousand
dollars of similar bonds have been paid
by the present and former state treasur-
ers. What will be the status of these OBJ
i legations for which value has already been
n, received will be an interesting complica-
i ton.
: In deciding the present case the court
holds, first, that the permanent school
fund Of the state is a trust fund. to the
f faithful administration of which the state
= is pledged; second, that the educational
d institutions of the state are not legal
e entities or school corporations, and that
T. their debts are debts Of the state; third
s that the only bonds in which the perma
nent school fund of the stae can be in
vested are bonds within the debt limit Of
n the state and SO certified; fourth, that the
= law authorizing the issuance Of the bonds
= is illegal and void, because it violates both
= the constitution Of the state and the en-
- aiding act, increasing obligations above
- the debt limit; fifth, that the state treas
urer in refusing to pay money for the
- bonds acted strictly in accord with hi
s duty as a state official and custodian o.
- the permanent school fund.
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