Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1922-07-13
BONUS PLAN INVALID
Supreme Court Decides Industrial
Commission Has No Power
In Matter.

In Matter.
Bismarck Tribune: Attorney for
the financial houses seeking to pur-
chase the returned soldiers certificates
and state officials who had interested
themselves in working out plan of
sale which would provide for early
payment of the certificates, today
were undecided as to whether the de-
cision Of the supreme court prevented
any arrangement being made.
The high court in a decision rem
dered late yesterday, held that the
contract between the Industrial Com
mission, the Adjutant General and
Minnesota Loan and Trust Company
and other financial houses was in
valid. Under this contract the finan-
cial houses agreed to purchase all
unpaid returned soldiers certificates,
estimated to be about $6,50O 900, at
18 per cent discount, this discount
being figured as the average amount
of interest upon the full value of the
claims until they would be paid. The
plan had been approved at the Amer
ican Legion convention at Devils
Lake.
The supreme court, affirming Judge
Nuessle of district court in the test
case brought to thresh out the legal
points involved, decided that the
case was not analogous to the hail
warrant case in which similar pro-
cedure was gone through before the
sale was consummated. In that case,
the court held, there was authority
conferred by statute for the making
of an arrangement while such author
| ity was lacking in the present case.
Commission Lacks Power
The case was brought by Harvey
Bauernfejnd of Mandan to restrain
the Industrial Commission and Adju-
tant General from entering into the
agreement. Judge Bronson wrote
the opinion while Judge Grace did not
sit because he has a son eligible to
claim the state bonus.
The court holds that the Industial
Commission and the Adjutant Genehal
have no authority to bargain away
the discretionary power lodged by the
LEGISLATURE to advance claims of needy
soldiers.
The Industrial Commission, it fur
ther holds, has no power to pledge
the states credit in such an agree
ment. The law provides the money
shall be disbursedl within the state
of North Dakota Judge Bronson held,
while under the terms of the con-
tract at least 1S per cent of the
money would necessarily be paid OUT
side of the state, in New York at the
place Of payment of the certificates
the financial houses would issue. q
The constitutionalitv Of the act was
not decided although Justice Robinson
in specially concurripe opinion, said
that another reason for holding the
contract invalid was "that the consti-
tutional validity of such bonus acts is
not clear beyond question and some
courts hold AGAINST such acts on the
Ground that the legislature may not
take the property Of one citizen and
give it to another person or class Of
versions, however deserving they may
be. -
Future Courts Uncertain
The purpose Of the proposed con-
tract may. indeed, be highly laudable," J"
said Judge Bronson. "The attempt
to secure expeditions payment Of the
monies to returned soldiers is deserv-
ing Of commendation. Indeed, the re-
turned soldiers. each and every one
Of them, should receive one hundred
cents on the dollar awarded by stat
ute to them. Clearly the purposes
Of the act is to secure conmepsation
and disbursement Of compensation,
one hundred cents on the dollar. The
defects existing in the present law,
which does provide a method Of .finan-
cling the present payment Of soldiers
claims, is a matter addressed to the
legislature. It is not a matter where
in the executive authority may as
sumo a legislative power, nor the
courts, by judicial. fiat, created q leg
islative power. i,
J. F: Sullivan, Of Mandan. one Of.
the attorneys who aided the financial
house Of representatives to devise 4
method Of sale Of the soldiers bonus
claims, said today that until he, had
had an opportunity 10 study closely
the opinion Of the supreme court he