State v. Dixon

• Decision Date: 23 October 1923
• Docket Number: 5411.
• Parties: STATE EX REL. MILLS v. DIXON, GOVERNOR, ET AL.
• Court: Montana Supreme Court

219 P. 637

68 Mont. 526

STATE EX REL. MILLS v. DIXON, GOVERNOR, ET AL.

No. 5411.

Supreme Court of Montana

October 23, 1923

Original action by the State of Montana, on the relation of R. M Mills, against Joseph M. Dixon, Governor, and others constituting the state board of examiners. Demurrer sustained, and proceedings dismissed.

R. M Mills, of Helena, pro se.

W. D Rankin, Atty. Gen., for respondents.

CALLAWAY C.J.

In 1920 the people passed initiative measure No. 19, designed to provide for the construction, repair, and equipment of buildings at the state educational institutions, and empowering the state board of examiners to issue bonds in the name of the state in an amount not exceeding $5,000,000 for such purposes. These are called "educational bonds of the state of Montana." Section 2 of the measure provides that the bonds shall be issued in series from time to time, and at such times and in such amounts as may appear to the state board of examiners necessary for the erection, repair, and equipment of buildings at the institutions under the control of the state board of education. By section 3 the board of examiners is authorized to determine the denomination of the bonds, which--

"shall bear date as of the day of the issuance thereof, shall become due and payable twenty years from their date, and be redeemable at the option of the state board of examiners at any time after ten years from their date at any interest paying period, and shall bear interest at the rate of not exceeding five and one-half per centum per annum, payable semiannually. * * *"

Validity of the measure was determined in State ex rel. Bonner v. Dixon, 59 Mont. 58, 195 P. 841.

Following proper proceedings the state board of examiners on April 18, 1923, issued series D and series E of educational bonds of the state of Montana. These bonds are made payable in 20 years, redeemable in 10 years, and bear interest as provided in the measure. These have not been delivered to purchasers.

By chapter 38 of the Session Laws of the Eighteenth Legislative Assembly, approved February 28, 1923, it is provided in part that--

"Whenever the state of Montana, or any county, city, town, school district, or any other taxing unit in the state of Montana having the power to issue and negotiate bonds, does hereafter issue its bonds, such bonds shall be payable on the amortization plan if bonds in this form can be sold and disposed of at a reasonable rate of interest. If amortization bonds cannot be negotiated at such reasonable rate of interest, advantageous to the people for whose benefit the same are issued, then in such case, serial bonds may be issued in place of amortization bonds."

There is not in chapter 38 any provision...