The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-09-24

ed county refused to issue warran,
on the treasurer for the amount speci
fed. The county Of Beltrami was per
mitted to intervene by demurrer ovel
the objection Of REALTORS that thu
court had no jurisdiction to hear ant
determine such demurrer.
The REALTORS insist that their OBJ
lection was valid and should result
in the dismissal of the county's ap.
peal in this court. The REALTORS are
not appealing, hence cannot assail
the propriety of the order permit
ing the intervention. Nor should
they now have the appeal dismissed
because that would result in giving
them the benefit of decision on the
merits on the assumption that juris-
diction existed.
Under the terms OF REALTORS con-
tract, and the law in force when it
was executed, the auditors refusal
to issue the warrant was proper. But
the right thereto is claimed under
chapter SGT Laws of 1913 which
amends the amended section II of
chapter 230 L. 1905 (the drainage
act) so that las to existing contracts
involving work the total esti-
mates of which exceed $30,000.OO,
rs per cent of the one-fourth which
under the contracts, and the prior
law, was to be retained by the county
of the estimates given by the engine
er In charge as the work progressed
until the full completion thereof
might be paid to the contractors, af-
ter SO per cent of the excavation was
done, and there was no default, pro-
vided the engineer in charge gave a
certificate stating the facts and that
no loss would result from such pay
ment. In the instant case the certi-
t1cate above mentioned issued by the
engineer in charge complied with
the Law of 1913.
The appellants contend that as to
prior contracts the act referred to
contravenes the constitutional pro-
visions, state and federal, forbidding
impairment of contract obligations;
that the classification attempted is
arbitrary and invalid; that it is
special legislation; and that the eff
feet upon the contract with REALTORS
is to appropriate public funds for
private gain. The REALTORS position
is that the county is not interested
in drainage contracts except as a
mere governmental agency of the
state in carrying on the purpose Of
promoting public health and welfare;
that therefore the state retains full
control of the drainage contracts and
may modify those already entered in
to with the consent of the contractors
and sureties, at it's pleasure; and
that legislature has plenary power
over the disposition of funds of coun-
ties, therefore the county cannot
claim any right to contract obliga-
lions, or private interest in the con-
tract, or in ditch funds which need
be respected by the legislature.
The serious objection to this act
as to contracts entered prior thereto
is the contention that it bestows a
gratuity upon the contractor out of
public funds without serving any
public purpose and without there be-
ing any moral obligation on the state
or county so to do. A county where
in public drainage is under taken is
required to provide a ditch fund by
the issue and sale of bonds for which
the county's credit is pledged, Van
Pelt vs. Beltrami, supra; and it is
also authorized to transfer to this
fund any surplus remaining in the
general revenue, or other funds of
the county which can properly be
used for the purpose of the act.
Sect. IS Chapt. 230 L. 1905 as amend
ed by Sect. Z L. 1909. BY Sect. 500
R. L. 1905 the county treasurer is
required to deposit the funds entrust-
ed to his care in designated banks
which agree to pay interest on
monthly balances. 1t is therefore
plain that, if there is sufficient in
the ditch fund on deposit in the
bank to meet the payments required
by this amendment of 1913 ahead of
the time specified in the contract of
relator, there is loss of interest
which such payments would have
earned had they remained in the
bank until the full completion of the
contract. On the other hand if the
bonds have not been negotiated and
the ditch fund is empty then the
warrant issued draws interest at 6
per cent and a loss of such interest
from the time of the issuance of the
warrant up to the time of the compile
ton of the work results to the ditch
fund. To the mind of the writer the
CT00p THE CUE
000o REPORTER