The Governor Vetoes Debtor Relief—and Warns It Would Speed Foreclosures

Olympia, March 22.—Special.—The governor has vetoed Senate Bill No. 8, relating to deficiency judgments, and gives his reasons in the following message:

State of Washington, Executive Department, Olympia, March 22, 1895.

To Hon. J.H. Price, Secretary of State—Sir: I transmit herewith Senate Bill No. 8, entitled 'An act to regulate the sale of property under execution and decrees,' together with my objections thereto. I have carefully considered the provisions of this bill and am irresistibly led to the conclusion that so far as it is intended to operate upon existing judgments, or upon existing contracts, express or implied, which have not yet ripened into judgments, it is unconstitutional and void, because it contravenes section 10, article 1, constitution of the United States, which provides that 'No state shall pass any law impairing the obligation of contracts,' and also section 12, article 1, of our state constitution, which declares that 'No law impairing the obligation of contracts shall ever be passed.'

The legislature intended this measure to have retroactive operation and to apply to existing judgments and pre-existing contracts. It contains no saving clause in favor of judgments or contracts heretofore made. The bill unconditionally repeals all acts in conflict with its provisions and declares an emergency because 'the present law relating to the sales of property under execution is oppressive and unjust.'

But the bill cannot accomplish the beneficent purpose of the legislature, which was to provide immediate relief for existing debtors. In all probability the approval of this bill would precipitate proceedings for the foreclosure of mortgages in all parts of the state and, contrary to the very intention of the measure, inflict hardship and misery upon the unfortunate debtors. It would prevent the renewal of mortgage loans, because that requires a new contract. It would tend to prevent the investment in this state of capital from abroad and to drive away the enterprising investor whose money is needed to develop our resources. In view of the foregoing, I am constrained to withhold my approval of said bill. Very respectfully yours, J.H. McGraw, Governor.