Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1906-01-16
EXTRA SESSION
IS NECESSARY
Gov. TooIe Says 1t Appears to be
Imperative in View Of the Bond
Decision.
HE DISCUSSES THE SITUATION
II the Legislators Are Called to Meet
1t Will be in Ample
Time.

Helena, Jan. Ex-Governor Toole
today gave out the following inter-
view, in defining his position in regard
to an extra session of the legislature
in connection with the bond issues
of the state educational institutions
that have been declared invalid by
the supreme court. He said:
When the matter was first brought
to the attention of the public | ex-
pressed the opinion that whatever
might be the judgment of the supreme
court, no bondholder would in the end
lose dollar of his money. It is due
to our creditors to say that nothing
has transpired to change that opinion.
Our solicitude at this time is more
to know whether the bondholders are
willing to acquiesce in the decision
rendered by our supreme court than
any concern about the immediate
wants of the several educational in
stltutlons, as the current expenses
arc amply provided for by the usual
appropriations out of the general
1und, and no inconvenience can arise
or will be felt in the least for the
current year, except such as may fol-
low the suspension of work on the
new building connected with the nor
NAL school at Dillon and this seems
to be unavoidable until the revenues
OF the state are largely augmented,
if the decision of the supreme court
is to stand.
1T seems that under section 2. of
article 13, of our constitution the leg
isiature may provide for taking up
these outstanding bonds by levying a
tax sufficient therefor, provided the
law authorizing the same is submitted
TO the people at a general election
ana shall receive majority of the
votes cast for and against at such
election. There is constitutional
provision against paying any claim
against the state not previously auth.
orized by law. which may or may not
be an obstacle, and may have to be
overcome, but the legal department
of the state will investigate this and
report in due time.
An Extra Session.
Since, under the constitution, no
provision can be made to meet this
emergency except at a general elec-
ton it follows that if an extra session
of the legislature Is not called for the
purpose of submitting the tax levy re.
ferred at tine general election this
fall the question could not be voted
upon until November, 1908, thus leav-
inE the state under it's moral obll-
cation to pay. in default, On all it's
maturing interest coupons for a per-
iod of three years, condition which
would tend to, if it did not, impair
our credit, besides being an act of in
justice to the bondholders not in &C.
cord with fair dealing and not in har-
mony, as I believe, with the senti-
ments of the taxpayers of this statee.
Confronted by this condition it
would seem imperative to call an ex.
ira session of the legislature unless
the bondnolders should express a de-
termination to have the validity Of
their bonds passed upon by the su.
preme court of the United States by
instituting proceedings for that pur.
pose in the federal court, or by &C.
quiescing in an appeal from the decis-
ion rendered by our supreme court in
the case of Hare VS.. Rice, in which
event the state, not having caused
the delay, ought to be absolved from
the payment of interest beyond Deem
Der 80, 1906, the earliest time at which
1t could arrange for the payment of
principal and interest. if an extra ses.
sion was called. 1t will be the purpose
OF the executive department to get in
to communication with the bondhold-
ers at the earliest possible time, af-
ter the period has expired within
which motion for a rehearing can be
filed and passed on, in the case of
Hare VS.. Rice. lately decided in our
supreme court. and apprise them of
the states plans and purposes.
"If call for an extra session is
made it will be called in ample time
TO prepare and consider and pass
proper bill for submission to the vot-
ers at the next general election in
November.
Further than this it is impossible
under the circumstances to say with
any degree of certainty"