Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-01
ATTORNEY GENERAL
ON ARM0RY MATTER
Advises Taking Question of Loan
Before Supreme /
Court.
WOULD BE DEBT OF STATE
Question Is So Considered In His
Opinion to Secretary of State
Land Board.

| returned an opinion to the state land
! board, as to whether it can legally
accept note for $4,000 from the Ar
rnory board, stating that in his opinion
there Is grave doubt as to the authori-
ty of the land board to loan the funds
| as requested to the state armory board
The document in full Is as follows:
l am in receipt of your favor of the
| End INST. with enclosure: note execut-
| ed TO the state board of land commits
Sioners of the State of Utah by the
state armory board, by William Spry,
governor; c. 5. Tingey. secretary of
state, and f, A. Wedgwood, adjutant-
| general, constituting said corporation
IN the amount of $4,000. under date OF
| Dec. TO- 1909, together with the written
request by said armory board, addressed
TO the state board of land commissions
| ers, that the said state board of land
commissioners turn over to the state
| armory board the amount of this note
You have asked my opinion as to
| whether or no the board can legally
| honor this note
The note is made and presented un-
| der the provisions of section A. chapter
| 20, Laws of Utah. 1909. the state ar
| mory board act
armory board, which is constituted a
body corporate 1t is provided that
such board may sue and be sued, and
contract and be contracted with The
BOARD Is authorized to acquire ground
upon which an armory shall be con-
structed, and is further authorized en-
powered. and directed to cause to be
constructed and equipped for occupan-
cy, upon the. lands so acquired q state
tl<o
mory board is, by said act, authorized
and empowered to borrow from the
state board of land commissioners the
sum OF $4,000 or such portion thereof
as may be required for the erection
OIL such armory, and to execute and
deliver its promssory note for that
sum so borrowed. and the said state.
ooard OF land commissioners is. by the
provisions of the act, authorized and
empowered to accept such note and
to loan to said armory board, the sum
of SS5, 900, or such portion as may be
required for such purposes.
OBLIGATION OF THE STATE.
1t is further provided by this act
that said body corporate shall be
deemed public corporation, and its
property shall be exempt from all
taxes and assessments.
| 1t is further provided therein that
such loan. above referred to, when
made by the said board of land COM
missioners to the state armory board
together with all sums of accrued in
terest, shall constitute and remain a
first prior lien upon the lands and build
ings by said act authorized to be pur-
chased and constructed by said armory
board
1t was held in the case of Stale VS.
the constitutionality of an act passed
by the legislature of 1909, providing
for a loan OF $25O.0OO by thexstate
board of land commissioners 70. the
University of Utah, upon notes 10 be
executed by the regents OF the Uriver-
sity of Utah. was attacked. that the
obligation authorized by such act,
while in terms made a debt of the
university, was in effect. an obligation
of the state, pure and simple and
IL was held in that case that such act
was in direct conflict with the provi-
sions of Section ] of Article IA of
the Constitution in that the indebted
ness which would be created under
the provisions of said act, would be
In excess of the borrowing capacity OF
the state
The state armory board is a state
institution, and IT would seem that
under the rule which was laid down
in the case above cited. the obliga-
ton which will be created providing
the provisions of this act are carried
out. will be an obligation of the state:
although 1t is not 80 expressly proyid-
ed by the act
As the university case, so in this
case-this obligation could be met
only by appropriation made by the
legislature. In fact, by the act itself.
there is provided for an annual appro-
priation of $4,000 out of the moneys
of the state treasury for the purpose
of paying interest on any sum bor-
rowed by the state armory board for
the erection of armories.
1t Is my opinion. therefore. that this
loan. If made. will be loan to tho
state. which will be an Indebtedness
of the state
But. further, while 1t would be an
Indebtedness of the state, it could not
In my opinion, be considered a bond
or a properly issued and authorized
obligation OF the state. such as would
be proper investment of the funds
held by the state board of land COM
missioners.
NO APPROPRIATION.
sion for an appropriation in this act
to meet the principal sum borrowed
Ii would be necessary, therefore, to
depend upon future legislation for
such appropriation.
The funds which the state board of
land commissioners have at their dis
posal for investment are funds de-
rived from the sale and rental of
lands granted to the state under the
provisions of the enabling act: which
funds are to be safely invested and
held by the state for the purposes for
which they were granted. Constitution
of Utah. Act 10. Section 0.
1t has been provided by law
In what manner these funds
may be invested by the
state board OF land commissioners.
Section 1851, Compiled Laws OF Utah.
1909
Under the provisions OF this section
the state board OF land commissioners
is authorized to Invest such funds In
government. state. county, city or
other district bonds. or in script or
warrants issued against the. funds to
be raised by special or local taxation,
| or assessment under the provisions OF
| the laws of the State OF Utah, or notes
| of the state made under the provisions.
| OF sections 1923 and 1i23xl, or in first
| mortgages on improved farms within
| the state, or otherwise as provided by
| law
SHOULD GO TO COURT.
Now. calling attention to the word
| ing pf section OF chapter 70, Laws
OF Utah, 1909, that is. the state arnory