Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-12-30
Writ Granted Declaring Ael
Of 1918 Legislature
Invalid
Law Gave Legislative and j.
dicial Authority TO Execu-
Tive Officers
Furnished Means Of pcquif-
log Property Without Doe
Process
Decision VIII Act IS Delih
Blow to Proposed Bend
ing Department

The proposed state bonding depart.
ment received it's death blow yester-
day, when the supreme court grant,
ed the Injunction applied forAby Max
Stern, restraining w. G. Taylor state
insurance commissioner, from carry
ing out the plans outlined in the act
of the legislature authorizing the de.
.partment.
The supreme court declared the
state bonding law invalid. holding
that it was an unwarranted delega-
tion of both Legislative and Judicial
powers to purely executive officers
and also deciding that. the enforce
ment of the law would provide means
for taking the property Of counties,
cities and other subdivisions Of the
state without due process OF law. II !,
According to the legislative act .
bonding department was to be main
1tained in the Office OF the insurance
commissioner to bond certain county.
city, Y village: town, township Ind
school district officials at the expense
of the subdivisions Of which they,
We're officers. q Il VII \
The supreme court held, that the,
unwarranted legislative power was
vested in the authority given the In.
surance commissioner to determine
how much OF the bonding fund cre-
ated automatically by the operation
Of the department should be paid for
actual losses and how much in other
ways. \. y
The judicial power, it was held, lay
in the fact that the insurance COM
missioner was given the sole power
to determine the amount due subdi-.
visions and also to the auditing board
the power of saying when the bonds
OF insured officials should be can
celed sf
Objection was also made to the
provision giving the insurance com.
missioner the sole right to determine
the amount due any subdivision
whose officials defaulted.
Following is the decision pf the
court:
State Of North Dakota. In Supreme
Court. HI
State Of North Dakota ex rel. An.
drew Miller, Attorney General, Re
lator, Plaintiffs.
VS..
Walter G. Taylor, Comissioner of In
surance of the State of North Da-
kota, and as such Commissioner Of
Insurance, Gunder Olson, State
Treasurer of the State Of North Da-.
kota, and as such Treasurer, De-
PENDANTS.
BY Chap, 1874, Laws Of 1913, enti-
tied, An Act establishing a State
Bonding Department in the Office Of
the Commissioner of Insurance, pro.
viding for sthe@ maintenance thereof.
and creating reserve therefor, pre-.
scrbing the duties Of officers con.
nected Herewith, providing for the
payment of premiums and indenities
for losses, and providing for the dis
posal Of the surplus after such re-
serve has been created" 1t was ct.
tempted to establish Bonding De
partment to bond certain county, city,
village, township and school district
officials, at the expense OF the slbdi-
visions of which they are onicials.
1t is held: Il. II d.
|. Following State VS.. Bulge. II
N. D. 532 (the Capitol Commission
Case) that said Chap. l94 IL invalid
as an unwarranted delegation of leE-
islative power to administrati WI ON.
GERS, for the reason that said iiCaI6lf
ter provides for the payment Of pre-.
miums by the subdivisions of
the arbitrary power. to determine
state. which premiums constitute !
Bonding Fund, and it.attempts to give
to the Commissioners Of Insurance
the arbitrary power to determine
how much Of such fund shall he ap- ap
piled to: the payment Of. losses and
how much to the payment Of depn-
ties, clerk hire and other expenses
OF the Department, and partlcularly,
because no limitation is placed upon
the amount which may be devoted
to the last mentioned subject,
2. Following State vs. BlaisdelL 10
N. D. So, said Chapter l94 III invalid.
as an unwarranted delegation of 81.
dicial power to purely administra4ive
oficials, In that Il commits q the
Commissioner Of Insurance The cole
Confined On f1ge7 81
z 4 Z H.