The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-05-28
BANK BOND ISSUE
O. K.DBY LANCER;
WHEELS REY0LYE
Temporary Halt in Capitalize.
tion of New Institution Is
Ended by Opinion
DEBT LIMIT IS EXPLAINED
Constitutional Intent Was to lg.
more Indebtedness Existing
Prior to 1919
The Bank of North Dakota may

The Bank Of North DakOta may
proceed.
In answer to Secretary of State
Halls request as to the legality Of is.
suing $4,000 900 OF bonds without first
mortgage or public utility security,
when the state already has bonded
Indebtedness of 100000, and wher
the constitutional amendment under
which the issue for the Bank Of North
Dakota ii made requires such security
for ailt bonded Indebtedness in excess
Of two million, Mr.. LANCER today ruled
that in his opinion the constitution
as amended authorizes the state to
issue bonds, not secured by mort
cages, IN the aggregate amount Of
$2,e00, 900 irrespective of the amount
Of bonds outstanding at present.
St Hall Called Halt. j I'll
To make q bond issue constitution
al, the securities must be signed by,
the governor and state treasurer and
attested by the secretary of state and
SIAI0 NC 6OVO4AOA ShAo
treasurer had already signed one mil.
lion dollars worth of the bank bonds
when Secretary OF State Hall declined
to affix his signature until fortified by
the attorney general, to whom, In
asking an opinion, he cited the fact
that the constitutional amendment re-
moving the debt limit, adopted last
fall, requires bonds in excess Of two
million to, be secured.
The, attorney general in his opin,
ion quotes a. decision from the sup
rene court Of Oklahoma in similar
matter affecting bonded Indebtedness,
which upholds the stand he has TAX
en-. Kentucky had an experience OF
the same kind, and its supreme court
held as. Mr. LANCER has Indicated.
The rule OF construction followed in
each 1T these cases is that indebted.
ness IFS not included in such eonsti-
tutional limitation, unless expressly
so~stated,. and a careful inyestigatior
discloses no decision to the contrary,
advises the attorney general.
Bill 10 Authority.
4 Moreover stnts - & enactment of
House Bill 49,, authorizing the issu-
ance Of bonds In amount 81 $4,000 900,
unsecured by V MORTGAGES. the six
teenth assembly construed Section 1872
Of, the constitution, as amended, as
APPLYING only. to bonds ITO be. issued
subsequent to the taking effect Of the
amendment to Section s1S2 Of the
constitution.
:.The law is well settled that If the
meaning Of the constitution is doubt
full, q legislative construction shall be
given serious consideration by the
courts, both as q matter of policy and
Also because 1t may be presumed to
represent the true intent OF the in
strument.-In view Of the foregoing,
it is no necessary for me to answer
your question as to whether H. B. 49
authorizes the issue of bonds in any
sum less than two million or whether
the Bank Of North Dakota may pro-
ceed to do business before bonds In
the sum of two million have been de.
livered to the Industrial commission
as the capital for said bank.
sserstary y Absent.
Secretary Of State Hall is in the
southwestern part Of the state today,
but he is expected to return tomor-
row noon. when 1t is expected that
the signing Of bonds will be resumed.
Only half the bonds, 1000 of the
$1,000 issue, have been signed to date
by the governor and state treasurer.
The remaining bonds, in denomina-
tions of $50 to $500, will be signed
later. 1t is planned by Director Cen
eral Cathro to Immediately offer but
half a million for sale in North Da-
kota. -