The Nonpartisan Leader Newspaper, June 30, 1919, Page 3

In the interest of a square deal - for the farmers lonpartin Tead Official Magazine of the National Nonpartisan League VOL. 8, NO, 26 " ST. PAUL, MINNESOTA, JUNE 30, 1919 League Wins Two Big Court Victories A magazine that dares to print the truth WHOLE NUMBER 197 Supreme Court of North Dakota Orders Secretary of State to Sign Bank Bonds—Industrlal Program Upheld by United States Judge 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.:F. 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 leglslature 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” was clearly expressed by Justice Robinson of the North Dakota ‘supreme court saying: “In construing a remedial statute we must copsider 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- prises must be liberally con- strued altogether so as to leave no handicaps on the state, It must: be: entirely free to adopt every means -and method which may be necessary to business success. - N STATE SHOULD MAKE PROFITS, IS OPINION “The state and several coun- 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. corporatxons are mvxted to do iness:al dt,omnhetheu'_w:l 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 there 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 Christianson, 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 . TYYER LET BE SPELL ME .yau QWH(LE 5 HIRAM i‘;\\\\\\ \i \! TR . —Drawn expressly for the Leader by W. C. Morns. 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 his wicked habits, he minds what the farmer says a great deal bétter, and he stays away from the farmer’ 'y orchard a great deal more than “he used to. The farmer is quite capable of takingicare of him for quite a time to eome, but e thh jhe Woman’s League auxiliary formed, the North Dakota Qusehold is in (L § flhape o' ‘handle him, no’ matter how 'obstreperous he ma; beeome.' s mmmmmvmm;‘xura 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 linit, 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 holdmg 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 bondéd 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’ opinion says: - “It must be conceded, there- 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. His: other theory is that all,of the proposed $2,000,000 issue ‘was void, as the bonds which could theory: did not: amount to $2,- 7 000,000, the aniount .required before.the Bank of North Da-~ kota could begin busiz ‘ess: Tha 1 acc: legally be issued under. his el