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soldier or sailor in whose behalf, or at whose instance, the same may have been made, to such pension, as may be provided by law.

SEC. 3. The widow of any soldier or sailor who may be entitled to a pension as such, under the laws of this State, shall be entitled to establish her identity and right to such pension in the same way and manner as is herein provided for soldiers and sailors.

SEC. 4. There being no law on the Statute books of Texas providing for the perpetuation of testimony in such cases as are provided for by this Act creates an emergency and an imperative public necessity demanding the suspension of the Constitutional rule requiring bills to be read on three several days in each House, and the rule is hereby suspended and that this Act take effect and be in force from and after its passage, and it is so enacted.

Approved March 23, 1909.

Takes effect ninety days after adjournment.

PERMANENT SCHOOL FUND-INVESTMENT OF.

S. B. No. 171.]

CHAPTER 110.

An Act to amend Sections 2, 3, 4, 5 and 6 of Chapter 124 of the Acts of the Regular Session of the Twenty-ninth Legislature relating to the investment of the permanent school fund by the Board of Education, by providing for purchase by said board of bonds of the United States, the State of Texas, the bonds of counties of the State of Texas, the bonds of the independent school districts of Texas, and of the common school districts of said State, and the bonds of any incorporated city or town, and the bonds of road precincts of any county of the State of Texas, and the bonds of any drainage, irrigation, navigation and levee districts of any county or counties of Texas, and declaring an emer

gency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. That Sections 2, 3, 4, 5 and 6 of Chapter 124 of the Acts of the Regular Session of the Twenty-ninth Legislature be so amended so as to hereafter read as follows:

Section 2. The Board of Education is hereby authorized and empowered to invest the permanent public free school funds of the State in bonds of the United States, the State of Texas, the bonds of the counties of the State, and the independent or common school districts, road precinct, drainage, irrigation, navigation, and levee districts of said State and the bonds of incorporated cities and towns, and the bonds of road precincts of any county of Texas, and the bonds of drainage, irrigation, navigation, and levee districts of any county or counties of Texas.

Section 3. Hereafter when any county bonds or the bonds of any incorporated city, independent or common school district, road precinct, drainage, irrigation, navigation and levee districts are offered for sale, the party offering, or proposing to sell such bonds shall first submit them to the Attorney General of the State, who shall carefully inspect and examine the same in connection with the law under which they were issued and shall diligently inquire into the facts and circumstances so far as may be necessary to determine the validity thereof, and upon being satis

fied that such bonds were issued in conformity with law, and that they are valid and binding obligations upon the county or incorporated city, or common school district, road precinct, drainage, irrigation, navigation and levee districts by which they were issued, he shall thereupon certify to their validity, and his certificate to that effect, so procured by the party offering such bonds for sale, shall be submitted to the Comptroller or Board of Education, with the bonds so offered for sale; and should the same be purchased as an investment for the permanent public free school fund from the county or incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts issuing the same, or from any person authorized by said county or incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts to act for it in the negotiations or sale of such bonds, they shall thereafter be held in every action or proceeding in which their validity is or may be called in question, to be valid and binding obligations of the county or incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts issuing the same, unless fraudulently issued, or issued in violation of the Constitutional limitation, and in every such action a certificate of the Attorney General as aforesaid (which shall be carefully preserved by the Comptroller), shall be admitted and received as prima facie evidence of the validity of the bonds and coupons thereto, which may have been so purchased; and it is further provided, that the commissioners courts of the counties of this State are hereby authorized to invest the permanent school fund belonging to their counties in the manner provided in this Act for the investment of the State fund.

Section 4. Nothing in the preceding Article shall be so construed as to relieve the Comptroller or Board of Education from the duty of a careful examination of the bonds offered as an investment for the permanent public free school fund of the State, an investigation of the facts. tending to show the validity thereof, and such Board of Education may decline to purchase same unless satisfied that they are a safe and proper investment for such fund, and no bonds shall be purchased as an investment for the permanent public free school fund that do not bear as great a rate of interest as at least three per cent per annum; and no county bond or bonds of any incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts shall be purchased as an investment for the permanent public free school fund when the indebtedness of such county, incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts, inclusive of the bonds so offered, shall exceed seven per cent of the assessed value of the real estate in such county or incorporated city or common school district, road precinct, drainage, irrigation, navigation, and levee districts, and if any default be made in the payment of the interest due upon such bonds, the Board of Education may at any time prior to the payment of such overdue interest, elect to treat the principal as also due, and the same shall thereupon at the option of the Board of Education, become due and payable, and the payment of both such principal and interest shall in all such cases be enforced in such manner as is or may be provided by law, and the right to enforce such collection shall never be barred by any law or limitation whatever.

Section 5. In all cases where the proceeds of the sales of any bonds have been received by the proper officers of the county or incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts or by the party acting for it in negotiating the sale thereof such county or incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts shall thereafter be estopped from denying the validity of such bonds so issued and the same shall be held to be valid and binding obligations of the county or incorporated city or common school district, road precinct. drainage, irrigation, navigation and levee districts, for the amount of bonds sued on and interest thereon, at the rate mentioned therein deducting such amounts, if any, as have been previously paid thereon.

Section 6. Whenever any county or incorporated city or common school district, road precinct, drainage, irrigation, navigation and levee districts of this State issues any bonds, and they have been approved by the Attorney General, as is required by the previous Articles of this Chapter, the county judge of the county or the mayor of the incorporated city or the president of the board of trustees of the common school district or the county judge or party authorized by law to sell the bonds of road precincts, or drainage, irrigation, navigation or levee districts, as the case may be, shall notify the State Board of Education of all bids received for such bonds, and the county judge, or mayor, or president of the board of trustees, as the case may be, shall give the State Board of Education an option of ten days in which to purchase such bonds; provided, that the Board of Education will pay the price offered for such bonds by the best bona fide bidder, and if the Board of Eucation shall fail to purchase such bonds, within the prescribed time, then the county judge, or mayor or president of the board of trustees, as the case may be, shall sell the bonds to the best bona fide bidder. In the event the State Board of Education shall pay a premium out of the permanent school fund on any bonds purchased as an investment for the permanent school fund, then the principal of such bonds and an amount of the interest first accruing on such bonds equal to the premium so paid, shall be and be treated as the principal in such investment and when such first interest is collected, such sum of the same shall be returned to the permanent school fund, and if they purchase said bonds for less than par, the discount they receive in the purchase of said bonds shall be paid to the available school fund when the bonds are paid off and discharged. The price paid for bonds shall be endorsed thereon at the time the same are purchased; provided, that where said board shall refuse to purchase bonds from the county, city or common school district, road precinct, drainage, irrigation, navigation and levee districts, or the parties to whom said. bonds were issued, then in no event shall said board purchase said bonds from any subsequent owner or holder of the same.

SEC. 2. The fact that the law does not now make provisions for the purchase of common school district, road precinct, drainage, irrigation, navigation and levee district bonds by the Board of Education of the State, and the permanent school fund of the State is being deprived of the right to make desirable investments in said bonds creates an emergeney and imperative public necessity that the Constitutional rule re

quiring bills to be read upon three several days in each House be suspended and that this Act take effect and be in force from and after its passage, and it is so enacted.

[NOTE. The enrolled bill shows that the foregoing Act passed the Senate by a two-thirds vote, yeas 23, nays 1; and passed the House by a two-thirds vote, yeas 97, nays 0.]

Approved March 24, 1909.

Became a law March 24, 1909.

INSURANCE COMPANIES RELATING TO BONDS OF TREASURERS OF PRINTERS' MUTUAL FIRE AND STORM INSURANCE ASSOCIATIONS.

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An Act to amend Section 2, of Chapter 116 of the General Laws of the 29th Legislature, relating to the treasurers' bonds of printers' mutual fire and storm insurance associations, and prescribing the fee for filing annual statements of printers' mutual fire and storm insurance associations and mutual fire and tornado insurance companies which transact business in only one county, and declaring an emergency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. That Section 2 of Chapter 116 of the General Laws of the Regular Session of the Twenty-ninth Legislature of the State of Texas, be, and the same is hereby amended so as hereafter to read as follows:

Section 2. Before beginning operations the company provided for in this Act must obtain from the Commissioner of Insurance and Banking a certificate of authority such as is issued to mutual fire and tornado insurance companies doing business in this State, first making a showing to said commissioner that the company has fully complied with all the requirements of law applicable to such mutual fire and tornado insurance companies; provided that no officers of printers' mutual fire and storm insurance associations shall be required to give a bond except the treasurers thereof, who shall annually file a bond with good securities and in amount to be approved by said commissioner.

SEC. 1a. All printers mutual fire and storm insurance associations and all mutual fire and tornado insurance companies which transact business in only one county, shall report annually on or before the last day of February to said commissioner on blanks prepared by him and pay to said commissioner as a fee for filing the same the sum of five dollars, and such associations shall not be required to pay the annual franchise tax collected of other corporations under the laws of this State.

SEC. 2. The fact that under the existing law printers' mutual fire and storm insurance associations are required to pay excessive filing fees and franchise taxes and their officers are required to give unnecessary bonds, creates an emergency and an imperative public necessity, requiring that the Constitutional rule requiring bills to be read on three several days

be suspended and that this Act take effect from and after its passage, and it is so enacted.

Approved March 25, 1909.

Takes effect ninety days after adjournment.

AGRICULTURAL AND MECHANICAL COLLEGE-ADDING DEPARTMENT OF INSTRUCTION TO DETERMINE SPINABLE VALUE OF COTTON.

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An Act to add to the Agricultural and Mechanical College of Texas, a department of instruction in the theory and practical art of grading, classing and determining the spinable value of cotton, and to make an appropriation therefor, and declaring an emergency.

Be it enacted by the Legislature of the State of Texas:

SECTION 1. That the Board of Directors of the Agricultural and Mechanical College of Texas, is hereby directed and required to establish at and in connection with the said college, a school or department for the instruction in the theory and practical arts of grading, classing and determining the spinable value of cotton, whose main purpose shall be to train students in the theory and practical art of cotton classing in all its branches from the field to the factory.

SEC. 2. In addition to the regular school provided for above, said board shall provide for a special summer school of at least two months each year for the training of special students, and there shall be no entrance examination for said special summer schools.

SEC. 3. The said board of directors is hereby invested with full power and authority to make provisions for said school or department, and to purchase the necessary equipment, and generally to do and perform all acts necessary to establish and maintain said school or department.

SEC. 4. The sum of $1000, or so much thereof as may be necessary, is hereby appropriated out of any money in the Treasury, not otherwise appropriated, for the purpose of establishing such school or department. SEC. 5. The crowded condition of the calendar and the importance of this measure create an emergency and an imperative public necessity, requiring the suspension of the Constitutional rule which requires that all bills be read on three several days, and it is hereby suspended, and that this Act take effect and be in force from and after its passage, and it is so enacted.

Approved March 25, 1909.

Takes effect ninety days after adjournment.

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