The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1923-04-27
unr TEST LAW IN THE COURTS OF MONTANA

c.+,, Attorney Erickson, in an
yga,'} .;.n rendered to County Treasurer
9-an S}llYI at the Treasurer's request for
Ol'C- " ooinion on the cOnstitutionallty OF
an ~ Oss,' 63 of the Session Laws OF
CaSg'iE' .do5 hos declared that law in his
IS1o ~ to he unconstitutional on two
opnroJi p.rTJs. First: that it is in direct
glo--c glluotrsyention of Section 39 Of Article
g Sgn'iqlb " tbo Constitution of the State of
Von+sna y T which prohibits the legisla-
a.On MOa'': from passing any law which
...J. ...J n diminish or extinguish an OBJ
lotion ,ii or liability owned or held by
.to tate, county or any municipal
.n.,orstion -. therein, and secondly be
~ .orso # discriminates between and
S.sTss SaS, two casses Of taxpayers; one
.oss having certain exemptions and
0-iviledges denied to the other, which
{ fundamentally unlawful.
Investment Bankers Law
The law in question provides that
where taxes against property has
been bid in BY private purchasers, that
tbe owner of the property or other re-
dpmptioner must pay the ten per
cent penalty and interest at the rate
Of one per cent per month until the
time the taxes are paid or redeemed,
but that when the taxes have been bid
in bv the county, then the taxpayer or
redemptioner may have his tax GER
tfcate by paying the original taxes
and seven per cent interest from the
time due. Attorney General Rankin
has rendered an opinion that this
means that the penalty has also been
remitted on all Of these taxes bid in
by the county. Attorney General
Rankin, has not, however, render
ed an opinion, although he has been
asked for one, on the constituiOnality
Of the law itself, but he will probably
do 50 shortly. If this law is allowed
to stand, it will mean a loss to Sheri-
dan county in the sum of $4,000 anC
the loss instead of accruing to the
benefit Of the farmers and local lane
owners, will accrue to the benefit Oh
the eastern money lenders and IN
yestment bankers who own frs
mortgages in this state on farms
which the owner does not intend tt
redeem the taxes or which have be
come delinquent for several years anC
have been bid in by the county. Th'
law was no doubt fathered and pu
through by investment bankers ant
mortgage holders.
LAW VICIOUS
The particular part of the law tina
IS exceptionally vicious is that par
that provides that the tax certificate
which have been purchased by specu
ators and investors must be paid i
tuIl, including the ten per cent pen
atty and one per cent per month in
terest but where the taxes have no
been bought by tax scalpers, but b
the county itself, that the penalty
a3nnulled and the interest rates re
Guced to seven per cent per annun
mus creating two classes of tax re
demptioneers.
CONSTITUTION PROHIBITS
Section 80 of Article V of the Cor
sutution reads as follows:
No obligation or liability of
any person, ASSOCIATION or corpor-
alton, held or owned by the state,
Cr any municipal corporation
thereln, shall ever be exchanged,
transferred, remitted, released or
postponed, or in any way dimin-
Sned by the legislative assembly;
nor Shall such liability or obliga-
goh be extinguished, except by
lne payment thereof into the pro-
per treasury"
OrINION OF COUNTY ATTORNF
relative to the matter the coun
oo:.y o.;:o!ney has written the followil
n, OPINION
NJ leI3tywood, Montana, April 16. 10
SSIounty Treasurer.
TnlenVywood, Montana.
e.1.t3T GrSgant to your direction I ha
SS%leiully Saoully examined Chapter No.
session laws of 1928. With resnect
Il ttIInsututionality ~ and I have rea,
~, 'Ge conclusion, unalterablv, Il
fbos.ss is not constitutional law. a
gar1;lre, gr1glore, you are correct in dis
sHDaug ssD-Cillg the provisions thereof.
low;naL lrp;SaLS unconstitutional for the t
inoi1, iis reasons which seem exec
"g.y plain to-wit:
ext;,a.1:mT + a.t:emTpts to diminish and par
ton e,,- Sulsh a debt liability or oblil
See Sonea 9o by a municipal corporate
ton ~ oS 3I Article V of the Consti
bits n. ~ Ine State of Montana Orc
paseino I,,e legislative assembly Fl
dimin;ss, any measure which tends
Or Tsb;i;.o T9;1 On extinguish an obligat
State oI owned or held by
u any municipal cornora4