Williston graphic. (Williston, Williams County, N.D.) 1895-1919, 1916-04-27
COURT HOLDS TRANSFER
Of SCHOOL FUNDS LEGAL
UNANIMOUS OPINION BY SU-
PREME COURT UPHOLDS
FORKS SCHOOL BOARD

A decision just handed down by the
state supreme court in the Grand
Forks injunction case may have an
important bearing on situations con-
fronting other public boards, both
municipal and county. The following
report of the decision is taken from
the Grand Forks Herald of the Goth:
The supreme court of North Dakota
today dissolved the injunction, made
permanent in December by Judge
Pollock Of Fargo, retraining the
Grand Forks board of education from
erecting a new high school building.
The decision, which declares that
the transfer Of money from the teach
ers' to the general fund is not illegal,
was written by Justice Burke, and all
| justices concurred.
The syllabus of the court follows:
"An action to restrain the school
board of Grand Forks independent
school district from carrying out a
contract for the erection of high
school building, because certain funds
had been diverted from the purpose
for which they had been levied and
that without such funds, said contract
creates a debt in excess Of the con-
stitutional limit.
"Held, that the transfer of funds
from the teachers to the general fund
in this case is not prohibited by Sec
ton IT'S, of the constitution, North
Daokta."
Decision by Burke, j., all justices
concurring.
Justice Burke's decision, in part,
follows:
"Not only the authority but the
dictates of common sense impel US to
hold, as we do, that incidental bal
ances levied in good faith and for the
same general purpose, when the orig
inal has been served, they can be
transferred from one minor account
to another without violating question
It's of our constitution. For instance,
if certain school board made a levy
of $1,000 for repairs for current
year and thereafter a fire occurred,
doing damage to the amount of $4,000
would it be contended that, the school
building must remain unrepaired for
another year until $1,000 in addition
could be levied and raised, while
there was $1,000 surplus in the sink
ing fund accumulated in good faith and
not needed for that purpose. Further
more, if the strict conception demand
ed by plaintiffs were allowed it would
prevent the transfer of money levied
to pay the teachers in 1914 to fund
to pay the same teachers in 1915.
"It must be kept in mind also that
this is not an action through decline
for levy of tax to prevent it's collec-
ton, but is an action to restrain the
fulfillment of contract by the Board
for the erection of a school building.
"Section 130 of the constitution,
which, by the way, is not found in all
the states having a section similar to
section IT'S, reads:
"The legislative assembly shall pro-
vide by general law for the organiza-
tion Of a municipal corporation re-
stricting their powers as to levying
taxes and assessments, borrowing
money and contracting debts and mon
ey raised by taxation, loan or assess
ment for any purpose shall not be di-
verted to any other purpose except
by authority of law
"If this section applies to school
corporation land we believe it does,
it and not section ITS governs this
case.
"It is our conclusion, therefore, that
section ITS of the constitution does
not apply to cases like the first.
Therefore, court of equity ought not
and will not in this case interfere.
The judgment of the trial court is re-
versed."
History of the Case
The case had it's origin year ago
when the school board passed reso-
luton providing for the erection of
new high school building.
A number Of citizens protested
against this action on the grounds
that the site was unwisely selected,
the cost of the building too great and
the school board not in a position fl
nancially to incur such expense.
The board, however, proceeded to
award contracts for the erection of
the building, its action being unheld
by majority of the voters of the city
at special election held for that pur-
pose.
Injunction Issued
The citizens of Grand Forks who
objected to the erection of the build
ing at that time started court pro-
CONTINUED on page 12)