The nonpartisan leader. [volume], June 30, 1919, Image 3

About The nonpartisan leader. [volume] (Fargo, N.D.) 1915-1921

Image provided by: State Historical Society of North Dakota

                
1
every means and method
which may be necessary to
business success.
STATE SHOULD MAKE
PROFITS, IS OPINION
"The state and several coun-.
It? ties and cities are public cor
porations, with large capital
and credit. Thus far they have
existed as big nurslings by pur
suing the feudal system of
levying taxes on the people,
and then squandering the pub
lic money. Now the public
corporations are invited to do
business and to make their own
•m
.•J#
Bismarck Bureau,
Nonpartisan Leader.
HE attack on the industrial pro
gram of the Nonpartisan legis
lature of North Dakota by
means of proceedings in the
courts has been dealt a double
blow in a single day. In two
decisions handed down June 15
the right of the people to estab
lish state plants was upheld.
In the first case Judge C. P. Amidon of the United
States district court in Fargo dismissed a suit which
asked an injunction to block the industrial program
on the alleged grounds that it was contrary to the
Constitution .of the United States.
In the second case "the supreme court of North
Dakota upheld the constitutionality of the $2,000,
.000 bond issue provided by the legislatare to estab
lish the Bank of North Dakota.
Both the federal and state
.courts call attention to the
right of the-people to decide
their own form of government
and point out the inadvisability
of courts attempting to legis
late by means of too free use
of the right to declare laws un
constitutional.
The spirit of "let the people
rule" Tyas clearly expressed by
Justice Robinson of the North
Dakota supreme court saying:
"In construing a remedial
statute we must consider the
old law, the mischief and the
remedy. Under the old law
the state was prohibited from
engaging in any industry or
enterprise, and accordingly the
power to contract debts was
limited to the small sum of
$200,000, but under the new
amendment the old limitations
and hamperments are no more.
Now the state and any county
or city may engage in any in
dustry, enterprise and business.
And as no limitations are
placed on .the manner of doing
any business, of course the
•. state may adopt the usual
business methods, which in
clude the borrowing of money
and the adaptation of means to
ends. The amendments which
permit and invite the state to
engage in business and enter
uprises must be liberally con
strued altogether' so as to leave
no handicaps on the state. It
must be entirely free to adopt
Y.
6.
IB?'
Official of the National Nonpartisan League
VOL. 8, NO. 26 ST. PAUL, MINNESOTA, JUNE 30, 1919 WHOLE NUMBER 197
Wins Two Big Court Victories
Supreme Court of North Dakota Orders Secretary of State to Sign Bank
Bonds—Industrial Program Upheld by United States Judge
expenses and a profit for the citizens or stockhold
ers the same as all private corporations do.
"With all its capital and credit, if the state can
not learn to make its own expenses and a profit for
its citizens, it does not deserve to exist.
"At the next election thgre should be submitted
a constitutional amendment prohibiting all further
taxation, except it becomes necessary for the pay
ment of the bonds. It is high time for the people
to throw off the yoke of bondage and feudalism.
Hence we conclude that it is the duty of the secre
-tary of state to sign and certify the state bank
bonds to the amount of $2,000,000."
Four of the state supreme judges concurred in an
opinion which was issued by Justice Grace. The
fifth, judge, Chief Justice Christiansen, who is a
relic left over from the days of the old regime in
North Dakota* did not take any clear position, but
delivered a dissenting opinion in which he held to
the contention that the constitutional amendment
NO REST FOR THE WICKED
QerreR
wtr
MC SPEt.1.
,y'CO GWHH.6
The "bad boy of North Dakota" has been in the hands of the farmer for quite a while for
treatment, and while he isn't entirely cured of hiswicked habits, he minds what the farmer
says a great deal better, and he stays away from the farmer's orchard a great deal more than
he used to, The farmer is quite capable of taking scare of him for quite a time to come, but
ip^with the Woman's League auxiliary formed, the North Dakota household is in fine
shape to handle him, ito matter how obstreperous he may become.
v.v:
2
—Drawn expressly for the Leader by W, C. Morris:
print the truth
under which the bonds are issued was not legally
adopted. This was in face of a four to one decision
on the subject in the supreme court last winter.
The secretary of state two weeks ago refused to
sign the bonds on the ground that they-exceed the
debt limit, and to date he has succeeded in tying up
the bonds for that length of time. The bank's ex
penses are totaling several hundreds of dollars each
day, without the bank being able to make any
revenue, because it can not legally do any business
before the bonds are signed and delivered to it.
The writ of mandamus will be served immediate
ly on Mr. Hall and the bonds will be delivered to his
office for signature, according to members of the
industrial commission.
The decision of the court holds that the act of the
legislature providing for $2,000,000 for the capital
of the bank is constitutional and in accordance with
the constitutional amendment adopted by the people
last fall. It is held that the issue of bonds is within
the debt limit.
The opinion of the court
holds that Mr. Hall acted in
bad faith in holding up the
bonds, because in his written
brief he makes one contention,
and in an oral statement an en
tirely different defense.
"He contends," says the
opinion, "in his brief that the
proposed issue of $2,000,000 of
bonds is wholly illegal, in that
the act providing for the crea
tion of the bank authorizes the
bank to begin doing business
only when bonds to that
amount are deposited with the
industrial commission for that
purpose that after the deduc
tion of $412,000 of bonded in
debtedness heretofore existing,
which he claims must be- de
ducted from the proposed
$2,000,000 unsecured bond is
sue, there would not be $2,000,
000 of unsecured bonds to de
posit with said bank."
AGREED TO SIGN
PART OF BONDS
In an oral statement Hall
agreed to sign $1,588,000 of the
bonds, which is the amount of:
the issue authorized by the
legislature, less $412,000, the
amount of the present state in
debtedness. In pointing out
this inconsistency the court's
opinion says:
"It must be conceded, therer
fore, that Hall knew at all
times under this theory that he
could legally attest and certify
to $1,588,000 of the bonds. He
conceded in the argument be
fore this court that he was
willing to do so He never did
at any time sign the amount
of bonds which he now claims
he is. willing to sign.
other theory is that all of the
proposed $2 000,000 issue was Mi-ii
'"void, as the bonds which coulB |p§t
legally be issued under his
theory did -not amount to $2,
000,000, the aniount .required||§||
before the Bank of North Da-.
kota could begin business That
(Continued on page
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