The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-06-21
WILL PRESENT
ARGUMENTS ON
BUILDING BILL
Case to Come Before Supreme
Court Some Time This
Month, Shafer Says

Argument on the constitutionality
Of the Ham ilton- Schlosser law which
permits kolding corporations to erect
dOrmitory buildings ut state cduca-
tional institutions will be heidi in
the supreme court during the June
term, although the date has not yet
been fixed, according to Attorney
General George +. Shafer.
The court has agreed to hear the
case as soon as briefs have been
prepared covering the legal points
in~c'"ed. Shnfer said.
Although the suit is friendly ono
it a.rcauy has resulted In changing
the plans Of officials at the state
agricultural college, Fargo, who plan
to take advantage Of its terms and
build new dormitOry this summer
Delays Start
Since the suit was Instituted by
the bank which is expected to buy
the bonds of the holding company
which will finance the enterprise.
the suit has resulted in delaying a
start on the project. John Lee
Coulter, president OF the college, had
hoped to start work at once SO that
the building will be ready for &C.
cupancy by fall.
At q recent conference with the
state board of adm in istration Coulter
said he believes he can get the
alumni association to finance the
digging Of the basement for the
structure. In the event the law IS
held unconstitutional the result will
be to stop work and leave the insti-
tuition with an excavation and no
building. This situation, it is thought
would be an induccment to the next
81, txx, ,,oEu ~ afi nn
for a building to be placed on the
site.
Although numerous questions are
raised in the suit attacking he valid
ity Of the bill, the main question Is
whether the state has the right to
convey school property to private
corporation. Another fine legal point
is whether such property shall be tan
free while the holding corporation is
in possession.
The land to which the board OF
administration has given title to the
holding corporation in accordance
with the new law, was given the state
by the federal government for use
in connection with the school. The
supreme court will be asked to deter
mine if the proposed holding cor
poration, which will be legally in
dependent but actually financia
organizations controlled by the col
lego, has a status which brings i,
within the terms of the federal Law
granting the land to the state.
Would Be Tax Free
The Schlosser-H Hamilton law con
templates that the property shall b.
tax free. The court will be asked tt
determine if that can legally be don,
in view Of the fact that it will b.
held by a private corporation.
The outcome of the suit will b.
watched by other state cducationa
institutions, several of which hav
indicated their intention to take ad
vantage Of the law and use it as al
aid to financing new dormitorics.
When the law was passed its nd
vocates pointed out that the educa
tional institutions were in need o
more and better facilities, for hous
ing students ut reasonable rates an
to provide the funds necessary t
build additional structures. 1t ais
was pointed out that since the stu
dents would pay for the use Of tn
rooms the buildings would pay on
in the same manner as private hotels
with the added assurance that tn
dormitories would be filled through
out the school year. Coulter ais
planned to use the proposed build
ing ut his institution to house sum
mer school students, thus making
do duty throughout the entire yeal
Because Of the fact that the agr
cultural college dormitory may b
delayed if the suit is not decide
quickly, the supreme COURT is e,
pected to expend considerable effo,
in arriving at an early decision {
the case. after the arguments ha,
been submitted.