The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1916-11-16
Farm Loan Law Held
To Be Constitutional

The supreme court today {Mon
day. declared enough Of the initia-
tive farm loan law, passed in 1914,
is constitutional to afford ga conn
pete, workable statute.' The de-
tails OF the operation OF this sta ute
the rate Of interest, the period Of
time for which loans shall be made,
the limitation as to assessed valua
tion-ail of these are LETT TO the wis
dom and discretion OF the state board
OF land commissioners, for the pui
pose OF the law as declared in the
title and body OF the act, is To secure
tie continuous, safe investment Of
these public funds says the opinion
TO the wisdom and integrity OF the
beard are confined all matters of de-
tail essential 70 the execution OF the
truss iii conformity with the spirit
OF the act,
Opinion by Holloway.
Associate Justice William l.. Hol-
loMay wrote the decision and Asso
ciate Justice Sidney Sanner and
cur, the latter stating: "Whije / did
not hear the argument in this case,
| have examined carefully the provis
OF the constitution by which it's val
idity must be determined l am sat
lifted that Mr.. Justice Holloway has
stated the only conclusion permiss
able and therefore concur therein"
The following paragraphs sum
marize the decision:
Our conclusion is that the board
after having given preference to the
public securities enumerated, in the
investment Of the public school
funds, is charged with the duty to
employ the residue of those funds
and all the permanent funds belong
ing to the higher educational insti~
tutions and to the reform school
deaf and dumb asylum and capitol
bulding in the, other securities
named. including first mortgages up
on good improved far inland in this
state
Leaves Workable Law.
This construction harmoniZes
section ! of this act with section 3,
article NI of the constitution, and
leaves intact a complete workable
statute. absolved from any of the oh
jections lodged against this plan
The decision affects three classes
OF funls-the common school fund
the higher educational funds, and
those derived from the grants to the
reform school, the deaf and dumb
asylum. the capitol building and the
penitentiary
Section 8, article NI, declares, con-
cerning the common school fund,
that it shall be invested. 80 far as.
possible. in the public securities
within the state, including district
haa = issued for tie erection Of
scnooi buildings under the restric-
tions 10 be provided by law"
Restrictions Are Valid.
The court holds that the restric-
tions provided for in section / Of the
form loan act are valid and that
hereafter money from the three
funds can be invested only in bonds
OF Montana school DISTRICTS "proyid-
ed that before such moneys are SO
invested the board must be salts
fled that the bonds SO to be negotiat-
ed are the only bonds issued by the
school district, and that the out
standing Indebtedness of said dis
trict does not exceed 8 per cent of
he valuation 0 fthe property within
it; in bonds Of the state of Montana
or of the United States in interest
bearing warrants upon the general
funds OF the state; i'll any state cap
itol building bonds OF the state OF
Montana. now issued, or which may
be hereafter issued in bonds of ir-
cation districts within the state of
Montana; in first mortgages on good
improved farm land in the state"
In Other Securities.
So tar as the funds OF the COM
mon schools are concerned the court
holds that after having given pref
erence 10 the public securities emu
merated in section 3, Article XI of