Daily capital journal. (Salem, Oregon) 1903-1919, 1913-10-09
GOVERNOR GIVES OUT
STATEMENT IN REGARD
TO STATE LAND BOARD
Quotes Law Regarding Hand
ling of Funds and ColIec-
ton of Same.
DEFINES DUTIES OF ALL
Makes Some Assertions in Regard to
Methods of Handling Which He
Does Not Approve.

Governor West today gave out the
following statement in regard to the
state land board and its duties:
The recens failure of the state treas.
urer s office to give prompt attention
to securing renewals of lot of old
loans which had passed the ten year
limit as provided by law raises an in
teresting question as to who is the
proper custodian of the school fund
securities.
Section 5, Article TX of the constitu.
tion, provides that:
"The governor, secretary Of state
and state treasurer shall constitute a
Board of Commissions for the sale Of
school and university lands and for
the investment of the funds arising
therefrom, and their powers and duties
shall be such as may be prescribed by
law"
Section 1882 of Lord s Oregon Laws
creates the State Land Board "for the
sale Of State Lands and for the invest
ment of the funds arising therefrom.
Section 1888 of Lord 8 Oregon Laws
provides for a clerk of the board,
among whose duties are those of keep.
ing records, files and other papers per.
tanning to his office, and faithful
record Of all transactions; to receive
and place on file all applications for
the purchase of lands or loans of mon
ey; to receive, receipt for, and make
immediate payment to the state treas
urer of all moneys received for the
sale of lands, and to perform such otA.
er duties as the Board may direct.
Section 1915 of Lord Oregon Laws
provides that:
"The principal and interest of all
loans shall be paid in gold coin of the
United States or its equivalent; and
such loans shall be-secured by note and
mortgage to the state land board on
real estate in this state of not less
than thrice the value Of the amount
loaned exclusive Of perishable i'm
Of unexceptionable title,
and free from all membranes, or by
a deposit of United States bond or
bonds or treasury warrants Of this state
of face value of not less than TWEEN
ty-five per cent in excess of such
loans. All the loans herein provided
for shall be made for the period of
one year. provided, that in case the
interest is promptly paid and the Sc
curity remains unimpaired, the board
may, in its discretion, permit the loan
to stand for a period of not longer
than ten years. Upon the payment of |
any loan, or of any bond, the prin.
cipal shall again be loaned or invest.
en- in like manner as in this section
provided. ="
Section 59lS of Lord d's Oregon Laws
provides:
1.-THE state land board shall take
all proper measures for the prompt
collection Of the interest on all loans
from any Of the funds specified in this
act as fast as the same becomes due,
and place the same to the credit of
The fund from which the loan was
made, to be paid out as provided by
law, the interest on the university fund
10 the support of the university Of
Oregon, and the interest on the col.
egt fund to the support of the agri.
cultural college, and to be paid to the
board of regents semi.annually."
Section 1919 Of Lord s Oregon Laws
provides for the purchases of school
district bonds by the State Land Board.
Section 1922 of Lords Oregon Laws
provides that such bonds shall be de.
ivered to the State Land Board
Section Article vi of the Constitution
provides:
"The powers and duties Of the treas.
nrcr of the state shall be such as may
be prescribed by law"