The daily star-mirror. (Moscow, Idaho) 1911-1939, 1915-01-30
SCHOOL FUNDS
SHOULD Be SAFE
EX-GOVERNOR MCCONNELL MAKES
CLEAR HIS POSITION WITH RE-
GARD TO UNIVERSITY MONEYS
Loans Should be Cautiously Made
History OF Convention Debates
Gfyen-Danger In Unwise
Investment

The letters printed below are in
nificance is rendered clearer by thu
statement of Ex-Governor Mcconnell
"It appears that an effort is being
made to economize the universit,
i. funds in a scheme to sell district bond.
for the purpose of obtaining none.
to improve the timber and sage brusl
lands. l contend that these fund:
should remain intact. This is nothing
more than the people of Idaho are en-
titled to- 1t is undoubtedly true tina
some of the investments in reclamation
bonds have been losses and the people
of Idaho can not afford to take any
chances by accepting the scheme sug-
gested."
The correspondence is as follows
BOISE, Idaho, Jan. 10, 1915, Hon. j
Dear Governor: l have been trying
to run down the facts in the case which
are behind the wording of Article g.
Section II of the Constitution relating
to the disposition of University lands
| have looked up the debates of the
Constitutional Convention and find that
you and Senator Hepburn had quite a
controversy over the matter and the
convention finally adopted the word
ing which he proposed.
AS read between the lines of the
debate, these funds could not be in
vested in any other way than in Uni
ted States bonds which is not being
done at the present time, and so far as
/ can learn, has never been done.
presumed also that the regents retain
ed control OF this University fund, but
it appears to have been administered
all these years by the State Land
Board.
| was trying to find if there was
any loop hole by which we could evade
the Constitution in the matter of in
yestigating these funds. as l am try
ing to secure their use for the purpose
OF bonding development districts in
the state.
If you have any information or
opinion relative to these questions, !
would be very glad indeed to hear
from you. / have read the debates
of the Constitutional Convention with
a great deal of interest.
Very truly yours,
E. E. ELLIOTT.
MOSCOW, Idaho, Jan. 29, 1915. Hon.
E. E. Elliott, Boise, Idaho. My Dear
Senator: Your letter of the 18th inst.
was duly received, and | have delayed
answering it until | had time to give
it the calm consideration the subject
requires
Yes Senator Hepburn and | had
quite a controversy over the subject
of investing the University funds; in
fact the debates will reveal that it was
only by prolonged and strenuous ef-
fort that we even succeeded in guard
ing the permanent educational funds
other than funds arising from the dis
position of University lands belonging
to the state" as we eventually did
by providing that they shall be loan
ed on first mortgage on improved farm
lands within the state, ETC."
81 b0 mi
as such contended that there should
be the same safeguards placed on Uni
versitv funds as on any other educa-
tional funds Of the state. See pages |
1889 and 1891 Of Proceedings and De-
bates of Idaho Constitutional Conven-
ion. The error under which Mr.. Hey
ourn and his supporters labored grew
3ut of the provision of the statute
certain lands to territories
'or University purposes, and support.
The act making such provision pro-
7ided that "the funds derived from the
sale of said lands shall be invested
n bonds of the United States and de-
posted with the treasurer of the Uni
ed States When we were admitted
Is a state the Constitution became OPP
.rat.ve under our admission act. See
section Idaho Admission Bill. And
he state board of land commissioners
lave assumed the prerogative Of per-
orming certain duties which Section
0. Article TX, of the Constitution as
igns to the University Regents, the
ontrol and direction Of all the funds
#, and appropriation to the universi- i
"
In your letter you say that you /
CONTINUED on Page - '