WHY IDAHO HAS A DUAL GOVERNMENT—A GLIMPSE AT THE LAW.
The second Governor of Idaho and the second President of the Co-opolitan
Association, succeeding Senator Thompson to both positions, was Hon.
Henry B. Henderson. The political machinery of the state was in the
control of the Association and our policy was to make the executive
officers of the Association the executive officers of the state also.
Some of those readers who live beyond the boundaries of Idaho into whose
hands this history may come do not comprehend why we continued to run
two organizations in the name of the people, instead of one. They are,
perhaps, at a loss to understand why the Co-opolitan Association did
not, when it had acquired nearly all the land in Idaho and embraced
nearly all the population of the state, transfer its dominion to the
state government and operate its co-operative system as a state
institution. The reason is simple enough. The state was necessarily
limited in its powers by the Federal constitution. There were several
very important functions which were by that instrument denied to state
governments, but not to private corporations, and we desired to exercise
them.
I have already adverted to the fact that the Federal constitution
prohibits the state from issuing “bills of credit.” This does not
prevent corporations, associations or private persons from doing so.
When we dealt with the commercial world “bills of credit” were often
necessary. Moreover, our industrial orders might be construed to be
bills of credit and this plan of labor exchange was, in reality, one of
the most important features of our co-operative system. If the state had
inaugurated such a plan the Federal prohibition would have crushed it at
once.
Still another important power would have been lost had the state
government owned and operated our system. We could not have extended our
business into any other state in the Union. It was our purpose to build
railroads. Most of the states permitted a corporation organized in
another state for that purpose to build railroads within their limits
and take land for their right of way by right of eminent domain. No
state had a law upon its statute books which gave similar powers to
another state. It had never been contemplated that a state would do
business or own railroads within its own limits, much less within the
limits of another state.
The Co-opolitan Association was organized under the laws of Idaho. There
the Association did not so much conform to the laws as the laws
conformed to the needs of the Association. This dual system proved to be
extremely useful. We made the state perform police duties for us and
regulate the relation of our members to one another. We had a system of
courts regulated by state law, but these had little to do. In 1910 we
repealed the laws giving remedies for the collection of any debt or the
enforcement of any contract entered into after January 1st, 1911, except
against the Co-opolitan Association. We had a criminal code and punished
crimes, but the people were all provided for and educated, so that three
great causes of crime—poverty, excessive wealth and ignorance—being
minimized, the criminal courts had little to do. That other cause of
crimes—drunkenness—is uncommon. All alcoholic or intoxicating drinks
were not only sold by the Association, but were of the purest quality.
It was and is a crime to import any liquors into the state for sale, but
the Association is its own manufacturer.