The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-05-26


kpta, -proyidsSsin ssctiens6 6 of said act:
That Bank Of North Dakota shall be
z6fens, md shah proces to transact
business swhenAYe there shall be sdes;
Uttered to the ihdustrial commission
bonds In the sum Of s., ,O00, 900. issued
~, the .stAf6 tsy my tjE provided ny
lASssforfs such purpose. The fund pro-
etred by the s,sn81 1oti1tiOn and sale Of
suShs sbonda :is hereby designated and
snsll be known as the, capital Of said
!; House Bill No. 49 authorizes the Is
suH.tfe bonds It'd the aggregate sum of
$lN0NOO0 and pfovidss: ~ 'The audi.
tor and secretary Of state shall en-:
dorse' and sign on each bond q certii.
cate showing that it, is, pursuant to
law and is within the debt limit"
.:# Certificate Required.
Section SLOT the constitution: "No
bond or evidence Of indebtedness of
the state shall be valid unless the
same shall be endorsed thereon GER
tihcate signed by the auditor and sec
fetary Of state showing that the bond
or evidence of debt is issued pursuant
to law and is within the debt limit"
Section 1872 Of the constitution as
amended reads as follows: "The state
may issue or guarantee the payment
of bonds, provided that all bonds in
excess of two million dollars shall be
secured by frst mortgages upon real
estate in, amounts not to exceed one
halt Jof, its \ Xaluni or upon real and
personal property Of ~state-0wned utili-
ties ! enterprises or industries, In
amounts not exceeding it's value, and,
provided further, that the state shall
not, issue or guarantee bonds upon
property of state-owned utilities, en-
terprises or industries In excess Of ten
million dollars.
Future Indebtedness.
t'NO future Indebtedness shall be In.
curredi:by the state unless evidenced
by-tAabond issue, which shall be au-
therized 5by law Tor certain purposes,
to- be clearly defined. Every law
authorizing q bond issue shall provide
for levying m annual tax, or make
other provisions. sufficient to pay the
interest semi.annlally, and the princi-
pal within thirty years from the pas
sage Of such law, and shall specially
appropriate the proceeds Of such tax,
or of any other provisions, to the pay.
ment OF said principal and interest,
and such appropriation shall not be
repealed nor tho tax. or other pro-
visions discontinued until such debt,
both principal aud interest, shall have
been paid. No. debt In excess Of the
limit named herein shall be incurred
except for the purpose Of repelling In
vasion, suppressinE insurrection, de-
tending the state in time Of war or
to provide for the public defense In
case Of threatened hostilities."
have been requested to sign cer-
tain bonds purporting to be issued In
compliance with the provisions Of
House Bill No. 20 and to certify that
said bonds are issued pursuant to law
and are within the debt limit. As the
present bonded Indebtedness Of the
state is approximately 100000, 1 do
not see how an additional issue OF
$4,000, 900 can be made unless secured
by first mortgages upon real estate or
upon state owned utilities.
Wants Prompt Action.
will you let me have your opinion
this morning, il possible, upon the
correctness of my position?
Will you also advise whether the
Bank of North Dakota may be opened
and proceed to transact business until
bonds in the sum Of $2,O0O0OO
have been delivered to the industrial
commission, to provide the capital
for said bank?
Can House Bill No. 49 be construed
Is authorizing the issue of bonds in
any sum less than $2,000,OO0?
Yours very truly,
-A> THOMAS HALL,
Secretary Of State.