New-York tribune., 1921-09-01
Two Judges Differ With
Majority Finding Hold
ingActLegislatureAdopt-
ed Is Unconstitutional
Legion Preparing
10 Ask New Law
Decision Is Declared to
Set at Naught Regis
tered Desire Of People
Special Dispatch TO The Tribune


ALBANY, Aug. 3l.-The Court of
Appeals to-day declared unconsttu-
tional the state soldier bonus act.
This decision effectively blocks the
distribution of $45,O0o,OOO among half
million ex-servce men in this state
and makes void the appropriation of
S25,oo0,000 made by the 1921 Legis-
lature to meet initial bonus requests.
In reaching the decision that the
bonus law is invalid, the court main
tains that the act is contrary to the
provisions of Section !, Article T, of
the Constitution. This particular sec
tion provides that "the credit of the
state shall not be given or loaned to
any individual" and the court holds
that the bonus act virtually involves
gift of the states credit.
Announcement of the courts deci-
sion was made to-day following a con-
ference which lasted several hours.
Judges Cardozo and Pound, at the end
of the conference, declined to join with
Judges Hiscock, Mclaughlin, Andrews.
Crane and Hogan in concurrlng in an
opinion written by Judge Andrews and
which finally was adopted by vote
of five to two.
New Law To Be Asked
1t is understood here that various
organizations of veterans will endeavor
to have another law enacted in an
effort to obtain a bonus.
The decision, coming on the heels of
a favorable decision by the Appellate
Division, was distinct surprise. Those
who favor bonus are optimistic They
believe the Legislature will be willing
to consider amending the constitution
SO as to permit the state to reward it's
soldiers.
Governor Miller, who approved the is
euance Of s1o,ooo,o 900 bonds to meet
immediate bonus demands, declined to
discuss the action of the court
IL have not had an opportunity to
read the decision," said the Governor,
"and am not prepared to discuss it,"
Attorney General Charles D. Newton.
who defanded the constitutionality of
the law when the case was before the
courts, predicted tonight that steps
would be taken by the next Legislature
to remove the obstacle in the path OF
the bonus.
Governor Miller's attention was
called to the fact that while the ma
jority opinion of the court is that the
payment of funds to veterans is ur:-
constitutional when the necessary ap-
preparation IS through a bond is
sue, there is apparently nothing in
The opinion which would hold the idea
that bonus in any way conflicts with
the states constitution as long as the
ntr& &nye y ! L
bonus.
Direct Tax Suggested
AS result of this circumstance it
is thought probable that the funds
can be provided by a direct tax au-
thorlzed by an extraordinary session
Of the Legislature.
The act provided that bonds for
$45,000,000 be issued and the proceeds
expended for a bonus to all persons
who served in the army, navy or
marine corps for more than two months
and below the grade Of captain in the
army or junior commander in the
navy. Comptroller James a. Wendell
attempted to issue bonds for $4,000
600; A friendly suit" was arranged
with the Westchester County National
Bank OF Peekskill, as it was found that
none of the larger financial groups
would pu hase the bonds until their
status hau been definitely established
The Appellate Division, Third Depart
ment, early this summer handed down
a declsio \ IN favor of the act. 1t is
from this decision that the Court Of
Appeals, which has the final voice in
the matter, takes departure. In CON
sldering the act, Judge Andrews s
opinion says:
The logic of this opinion is not
that the Legislature is unable to aid
the wounded. We cannot too clearly
en- phas ze at the outset of our discus
sion that this is not an act to restore
to health and usefulness those who
became disabled in the performance Of
their duty. To do this is sacred trust.
Every human impulse prompts us to
Its full accomplishment Neglect here
spells disgrace.
Yet by this act help for the wounded
is at least postponed For them as a
class nothing is done Whatever right
the state may have to use its moneys
IN making these the subject of it's first
ard devoted consideration, this right
fnds no expression in the present
statute. The wounded are not rea-
son or ground for its enactment. He
Continued OH page four)