The Holly chieftain., 1915-03-26
STATECAPrTAL
NEWS
Western Newspaper .uaios News Service.
FARM LOAN LAW INVALID.
supreme Court kneeks Out Measure
Giving state AID in individual
CAeaa

Giving stats Aid in Individual
Cases.
Denver.--The State Supreme Court
declared invalid all parts OF the farm
ers' loan law which provide for q
loaning system. The decision was an
nounced in the case brought by At
torney General Farrar in the name of
the people against NJ A. Leddy. former
treasurer, to compel him to apportion
uninvested school funds for loans to
farmers on unincumbered property as
provided by the law.
The case, which was test one, was
advanced by the Supreme Court upon
its docket in order that an early de-
cision might be- had while the Legis-
lature was In session.
Bills to remedy the constitutional
defects of the loan law are now pend
ing in both the House and Senate.
The court found that section 46 of
the loan law was in violation of Sec
tion /, article Of the constitution,
which prohibits the state or any coun-
ty or municipality from lending its
credit to any person, company or
corporation" or from becoming respon-
sible for any debt Of any person or
corporation.
BY the provision Of the law in ques-
tion, the county commissioners were
to assess tax upon all assessable
property in their county to meet any
default in payment by farmers of
money loaned them by the state.
The court held that the law made
the counties liable for the debts of
the farmers and was therefore invalid
and that 1t was unconstitutional for
"a second reason; that the counties had
no right to make up loans of the
school fund because section 3, article
9 of the constitution provides that "the
state shall supply all losses of the
school fund that occur in any manner"
The bills which have been intro
duced In the Legislature are designed
to meet these two defects The SEN
ate measure is by Senator Barela and
the House measure by Representative
Fincher and Nelson.
Report Workmen's Compensation Act.
Denver. In several important
phases the workmen's- compensation
bill reported to the State Senate by
Senators Lewis and Candlish differs
from the compensation features Of the
administration compensation-industr
relations bill. which was referred to
them as special committee. The
compensation bill is chiefly the work
of Senator Lewis as the Industrial re-
lations bill also reported out is chief
ly the work Of Senator Candlish. The
bill creates state insurance fund for
the benefit OF injured employees and
the dependents OF injured or killed
employees. This fund is to be admin
istered by the State Insurance Commits.
sioner. who is given ample power to
fix rates in accordance with the limi-
tations of the measure and to enforce
the measures provisions.
New Counties Bills Killed.
Denyer.-There will be no new coun-
ties created by the present session
Of the Legislature. The State Sem
ate adopted adverse reports Of its COM
mittee on county lines against bills to
create the counties OF Ute, Carlson,
Pawnee and Hagerman. The meas
ures In reality intended only to es-
tablish three new counties, the House
bill to create Hagerman county being
the same as the Senate bill to create
Pawnee county except for the name.
Governor vetoes Employees Bill.
Denver.-Governor, Carlson vetoed
the bill passed prescribing eight hours
as the working day of employees Of
state institutions. principally of the
penal institutions. He based his re-
fusal to- approve the bill on the
ground of financial limitations Of the
state, declaring there are no funds
with which the extra salaries the law
would require could be paid. 1t was
his first veto.
Governor Carlson Comments House.
Denver.-Governor Carlson. In his
message to the Legislature. COM
mended the House for its action in
probing the Rowland matter. and
added that the people would applaud
the House for clearing itself entirely
of any charges. But, he added, this
Investigation should not interfere. with