Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1920-11-05

sen is made the chief administrator
and disbursing head. All applica-
tons must be made to him. where
upon he will issue the necessary war
rants.
No action is required by the 1921
legislature, inasmuch as the act
passed by the voters last Tuesday ap-
propriates the money estimated as
necessary to pay the bonus, which s
$11, 100000.
The step to be taken next then is
issuance and sale of the bonds, which
is placed in the hands of the state
board Of finance. Before this can be
done t is likely that an effort will be
made to institute friendly test suit
in the supreme court for determine
tion OF the validity of the bonds.
While the service men as a whole
cannot see how the bonds could by
any chance be declared invalid. there
is constitutional question as to
whether the state has the legislative
power to levy tax for the purpose
specified in the bonus bill, and, not
withstanding the vote of the people.
supreme court ruling on the valid
ity Of the act in question will prob
ably be necessary before the bonds
can be sold. Just how the litigation
will be instituted has not been deter
mined. Some reports have it that a
suit will be brought by taxpayer to
prevent Secretary of State J. Grant
Hinkle from promulgating the law
after the vote is canvassed. The can
vassing of the vote takes place one
month after the election. Another
method would be to have the board
of finance refuse to issue the bonds.
and bring mandamus action to COM
pei them to do so.
/ In any event there is nothing that
can be done towards paying the
bonus Immediately. The vote must
be canvassed before any action can
be taken. That will take 80 days.
Then the board of finance must issue
the $11,OOO,0OO worth of bonds and
sell them, with the possibility of the
test suit thrown in. After that Is
done and the bonds are sold the path
will be cleared for the work of State
Auditor Clausen. He, with the as
sistance of the adjutant general, will
assume charge of the payment Of the
warrants. Application must be made
to him on blank forms to be fur
nished. Together with the app!ica-
ton must be furnished the soldiers
or sailors discharge or release from
active duty. providing he is still On
the reserve.
There is a provision in the act CIV
ing State Auditor Clausen the right
to issue anticipatory warrants, that
is warrants in anticipation of the sale
of bonds, but it is certain that nc
bonus warrants will be issued until
the bonds are safely disposed OF and
the Veterans Compensation Fund
has sufficient funds on hand to meet
demands.
This new state fund. to be known
as the veterans compensation fund
will be kept going by the sale OF
bonds and the bonds in turn will DC
retired by means of a l mill tax levy
which starts nj 1921. This levy goes
into a fund to be known as "Veter
ans Compensation Bond Retirement
Fund" The bonds are to draw
per cent interest. and may be either
coupon or registered bonds. redeem
able within 20 years. The actual de
tails for issuing them are left to the
state board of finance.
In any event those who are in posi-
ton to know say the bonus cannot bt
paid out util January 1 at the ear
Hest. If the machinery is held up t.
the litigation as to the validity o
, the bonds it may be later In thu
meantime the state auditor mus
make necessary arrangements TO-
clerk hire and Office room to handle
the additional work thrust upon him
, That is his main worry at the pres
, ent time. His Office is badly crowded
but it is expected that additional OF
fee room will be available for hin
after January /, when a number O
offices move to the new INSURANCE
building in the new capitol group.
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