The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1907-02-15
ellis Them it Will be Neces-
sary to Cut Down Appro-
/. priation Bills.
HER TWO MILLIONS HAS
ALREADY BEEN ASKED FOR
ltteation Called to the Alleged Uncon.
/ stitutionality Of Issue Of Bonds Pur.
Nchased by Board Of University and
4 School Lands-Emergency Of the
\ Situation is Explained.
Bismarck, Feb. Is, 1907.

IN To the senate and the house of
Representatives:
You now have before you appro-
sspriation bills amounting to more than
stwo million dollars and there are
still other appropriation bills to fol-
low. one Of which will be an appro-
priation for the maintenance of the
capitol, which is of course an abso-
lutte necessity, and in addition therto
some Of the educational institutions
of the state in 1891 and in 1901 is
sued bondd An the sum of 100000,
which under thedecision of the su-
preme court In the case of Board of
University and School Lands VS.. Nc
MILAN is indirectly declared uncon-
stitutional; that is, bonds attempted
to be issued under similar law pass
ed In 1903 are declared unconstitu-
tional. All but about $4,000 worth
of such bonds have been purchased
by the board of university and school
lands and sinking fund was Great
ed from the interest and income of
the state institution lands for the
purpose Of paying the interest on
such outstanding bonds as follows:
State university and school of mines
$4,000, agricultural college $9,407-
40, industrial school $3,70S.32, reform
school $3,762.96, soldiers home
32,622.20.
In the case Of the Board of Univer-
sity and School Lands VS.. Mcmillan
the court held that while such bonds
were issued by the institutions it was
in fact state debt and it necessarily
follows that the state will be obliged
to pay the debt and to pay into the
different funds of the public institu-
tions such amounts as were diverted
from said institutions in the pur.
chasing of said bonds and in the Gre
alton OF sinking fund, and it will be
further necessary to appropriate mon
ey to redeem the outstanding illegal
bon1s not purchased by the board OF
University and School Lands and
which amount to about $55 900, SO that
In addition to the support and mainten-
ance of the different public institu-
tions you have before you the question
of the appropriation of money to take
up the outstanding illegal bonds ami
moneys diverted from the funds OF
the different public institutions of the
state. There is, perhaps no immedi-
ate necessity for the payment of the
funds of the different institutions used
for the purchase of such bonds, but
In this connection I will call your
attention to Section II of the enabling
act, which provides that the proceeds
of the sale of lands granted for edu-
cational purposes shall constitute a
permanent school fund, the interest
of which only shall be expended III
the support of said schools, and that
the decision referred to, the Supreme
Court in constructing this section
holds chat such proceeds constitute
a permanent trust fund, the interest
and income Of which alone may be
used by the state, and that only for
the support Of such schools as are
designated by the enabling act of the
constitution and to the maintenance
of which trust the faith and honor OF
the state is pledged"
Under section 154 of the constitu-
tton B the income and interest of the
common school fund shall be faith.
fully used and applied each year for
the benefit of the common schools of
the state and no part of the fund shall
ever be diverted even temporarily