The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1919-12-25
BOND SALE ON
in JANUARY
State Supreme Court Sustains the
Validity of the Soldiers
Bonus Law.
MANY CLAIMS ALREADY FILED
Service Men and Women Get SIS
For Each Month They Were
With the COlOrS.

TIL sale of the soldiers bonus bonds
will commence in Minnesota in Feb
ruary, according to information from
st. Paul this week.
The validity of the bonus law was
sustained by the state supreme court
on Friday and the bonus board met
in ST. Paul on Tuesday to arrange for
the sale of S5,000,000 or $4,000, 600
OF the $2O,00O,OOO authorized state
certificates.
The bonds will be sold on bids next
month and it was predicted that ac-
tual bonus payments will start early
in February.
Already more than $4,000 claims
have been filed and Major w. A. Cur
tbs, executive officer, said that already
nearly 10000 have been checked and
are ready to be passed on by the
board. The present organization can
turn out from 800 to 1000 claims a
day, and the payments may extend
over period of four months or more.
The court announced Saturday
that it has affirmed the order of
Judge C. S. Jelly in Hennepin county
district court. The suit was brought
by A. Gustafson, Minneapolis cit
izen and taxpayer, to restrain the
bonus board from sale of certificates.
Judge Jelly upheld the states demur-
rer, and the supreme court affirms his
ruling, but its detailed decision is yet
to besfited.
State Treasurer Henry Rines said
Monday the board probably will wait
J, for filing of the formal opinion which
! will determine whether the certificates
Ice to be held direct obligations of
the state, or obligations against the
bonus fund. If they are held obliga-
tions against the state, he said, they
will command a better price and the
board will want to take advantage of
the profit from that source. Market
conditions for the sale will be better
after Jan. 1. He said further, as by
fiat time many dividends will be
seeking new securities.
Bonus payments are due from the
state under the law to all former SER
vice men and women who went into
the service from Minnesota, at the
rate of SIS for each month with the
colors. Conscientious DIRECTORS are
barred. In case the soldier died and
left a widow, she is entitled to the
bonus, but other surviving relatives
have no claim.
The suit was brought at the re-
quest of bond companies, which were
reluctant to bid on the certificates I'M
til their validity had been determined
by court action. The state supreme
court called in three district judges
to sit in place of the three supreme
court justices, who held themselves to
be disqualified because of relationship
to men who are benefited by the law.
This improvised court heard the ar
guments late Friday and met i'm
! nediately after the hearing to decide
the case.
a The affirmative decision was receiv-
Z ed with great satisfaction Saturday
'$by state officials, especially members
and employees of the bonus board.
| They are still anxious, however, to
know whether the opinion to be filed
next week will sustain the law in all
/ details. The announcement Saturday
merely says it is held to be constitu-
tional There is some question as to
whether Minnesotans who fought
with Canadians or other troops will
be held legally entitled to share in the
bonus.
Attorney c.. II. Hilton, with four
members of his staff, appeared in the
case as counsel for the bonus board
and defended the law. Mr.. Hilton
said that the J. affirmative decision
should mean a higher price to
be realized for the state securities,
and he EXPRESSED qualification. Argu-
ments before the court Friday
were by Egbert S. Oakley and Albert
F. Pratt, assistant attorney general
and by Geo. F. Simpson, former
attorney general and attorney Tor
Custafscn, against it.
Mr.. Oakley pleaded that il time OF
war there is no limit on the indebted
ness that may be created by the state
for public purposes. Mr.. Pratt, who
served as a lieutenant colonel over
seas, urged the claim of service mem
There would be no objection to an APP
priation for a new state building or
an ornamental fence around the state
capitol, he said "There are things In
the world now" he continued, chat
are of greater Importance than the