The authority of your commission appears to be limited by section 1 of chapter 633 of the Acts of 1913, which provides as follows:

During all times in which outdoor labor is practicable, inmates of penal institutions who are required to labor shall be employed, so far as is possible, in the reclamation of waste places, and in cultivating lands for raising produce to be used in public institutions. Prisoners so employed shall be at all times in the custody and under the direction of the prison officers.

The intention and purpose of the Legislature to make the work of reclaiming land and preparing material for road building the principal industries at the Prison Camp are indicated by the provisions of section 1 of chapter 243 of the Acts of 1904, to the effect that the Highway Commission and the Board of Agriculture shall, upon request of your Board, give such information as may enable you to prosecute to the best advantage the work of reclaiming and improving waste land, etc., as well as by section 1 of chapter 633 of the Acts of 1913, above quoted. But I do not think that as the statutes now stand your Board is absolutely precluded from employing prisoners at the Prison Camp in suitable lines of industry other than the reclamation and improvement of land and preparing material for road building at such times as it may be found impracticable to carry on this work.

I note that road building is mentioned in both your questions. May I suggest that preparing material for road building is the industry named in the statute.

It is my opinion that the employment of prisoners at the Prison Camp is limited to the reclamation and improvement of waste places, the cultivation of lands for raising produce to be used in public institutions, and preparing material for road building, during all the time when outdoor labor is practicable, and that your Board may provide for such period of time as outdoor work is not practicable such employment as is best suited to the welfare of the prisoners.

Very truly yours,

THOMAS J. BOYNTON, Attorney-General.

Co-operative Banks - Loans - Reduction of Rate.

A co-operative bank authorized by its by-laws to dispense with offering its money for bids, and in lieu thereof to loan money at not less than 5 per cent., as fixed by its directors, may reduce the rate of interest to any rate not less than 5 per cent. to a borrower who applied for and received a loan at a fixed rate, fixed by the board of directors when the loan was made.

Hon. AUGUSTUS L. THORNDIKE, Bank Commissioner.

DEC. 16, 1914.

DEAR SIR: You have requested my opinion upon the following question:

In a case in which a co-operative bank is authorized by its by-laws to loan its money at such rate of interest, not less than 5 per cent. per annum, as may be fixed from time to time by its directors, in lieu of offering money for bids, may such bank reduce the rate of interest to a borrower who applied for and received a loan at the rate so fixed by the board of directors when the loan was made, or can the rate be reduced only in cases where the bank offers its money for bids?

St. 1912, c. 623, §§ 19 and 26, provide as follows: —

SECTION 19. The funds accumulated, after due allowance for all necessary expenses and the payment of shares, shall, at each stated monthly meeting, be offered to applicants according to the premium bid by them for priority of right to a real estate or share loan, which shall consist of a percentage charged on the amount loaned in addition to interest, at a rate not less than five per cent per annum, payable in monthly instalments. If the corporation so provides in its by-laws, the bid for loans shall, instead of a premium, be a rate of annual interest not less than five per cent per annum payable in monthly instalments upon the amount desired. Any such corporation may, when so authorized by its by-laws, dispense with the offering of its money for bids, and in lieu thereof may loan its money at such rate of interest not less than five per cent per annum or interest and premium as may be fixed, from time to time, by the board of directors, in which case the priority of right to a loan shall be decided by the priority of the approved applications therefor. Such bids or rates shall include the whole interest to be paid and may be at any rate not less than five per cent per annum.

SECTION 26. If a borrower purchases money at a lower rate than that paid by him on an existing loan, secured by a mortgage, for the purpose by him declared of reducing the premium or rate of interest upon said loan, a new mortgage shall not be required, but an agreement in writing for the reduction of said premium or rate of interest, signed by the borrower and the treasurer of the bank, with the written approval

of the president, shall be valid, and shall not impair or otherwise affect the existing mortgage; and thereafter the borrower shall make the monthly payments on the loan in accordance with the terms of said agreement, and the amount of money previously so purchased by him may be resold by the bank at the same meeting.

Your question appears to have been suggested, in part at least, by the use of the phrase in the statute, "if a borrower purchases money," etc., in section 26, and by the idea that one who obtains a loan of money by bidding for it purchases the money, and that one who borrows money at a rate of interest not less than 5 per cent. fixed by the directors of the bank is not one who purchases.

The answer to your question, then, turns, in part at least, upon the scope and meaning of the word "purchase" as used in the statute. This word is defined as

A term including every mode of acquisition of estate known to the law, except that by which an heir on the death of his ancestor becomes substituted in his place as owner by operation of law. (Bouvier's Law Dictionary.)

The word "purchase" is further defined as

Acquisition; the obtaining or procuring of something by effort, labor, sacrifice, work, conquest, art, etc., or by the payment of money or its equivalent; procurement; acquirement. (Century Dictionary.)

These definitions indicate that the word "purchase" is not confined in its meaning to the process of bidding for something, nor to the acquisition of property by the payment of money, but to many other and different transactions; and that one who procures a loan from a bank at a rate of interest fixed by its directors is just as truly a purchaser of a loan as the man who procures a loan by bidding for it.

Your question may have been suggested also, in some part at least, by the fact that in those cases in which the bank loans its money at a rate fixed by the directors a written application is made for the loan; but the man who bids for the loan makes application for a loan at the rate named in his bid.

It is my opinion that a co-operative bank authorized by its by-laws to dispense with offering its money for bids, and in lieu thereof to loan money at a rate of interest not less than

5 per cent., fixed from time to time by its directors, may reduce the rate of interest to any rate not less than 5 per cent. per annum to a borrower who applied for and received a loan at a rate fixed by the board of directors when the loan was made, and that all the provisions of section 26 of chapter 623 of the Acts of 1912 apply to such a transaction.

The Legislature has no authority to enact a general municipal corporation act, giving cities the right to adopt one of several forms of charters, without further special legislative enactment.

Authority to legislate so as to amend a city charter cannot be granted to a city.

It is within the power of the Legislature to enact a general act giving cities the right to change, alter, consolidate, create or abolish departments without special legislation in each particular instance.

The Legislature has power to authorize a city to choose by vote between two or more charters, and may provide that a form of charter once adopted shall remain in force for a fixed term of years.

Joint Special Committee on City Charters.

DEC. 18, 1914.

GENTLEMEN: You have requested my opinion upon the following questions:

1. Can the Legislature enact a general municipal corporation act, the effect of which will be to permit cities to adopt one of several forms of charters set forth in such municipal corporation act without further special enactment on the part of the Legislature?

2. Can the Legislature in such act or otherwise make provision for changes in existing charters without further special enactment on the part of the Legislature; i.e., leave the charter in the main as heretofore granted, but giving authority to make changes in minor provisions?

3. Can the Legislature enact a general act which will give to cities the right to change, alter, consolidate, create or abolish departments as convenience or exigency demands, without further special legislation in each particular instance?

4. Can provision be made in the general act above referred to that when a municipality has rejected one of the several forms therein set forth, the same shall not again be available; i.e., voted upon, for a fixed term of years thereafter?

(a) If accepted, that no other form shall be acted upon for a fixed term of years thereafter.

Article IV. of Section I. of Chapter I. of Part the Second of the Constitution of Massachusetts provides as follows:

Full power and authority are hereby given and granted to the said general court, from time to time to make, ordain, and establish, all manner of wholesome and reasonable orders, laws, statutes, and ordinances, directions and instructions, either with penalties or without; so as the same be not repugnant or contrary to this constitution, as they shall judge to be for the good and welfare of this commonwealth, and for the government and ordering thereof, and of the subjects of the

same.

Article II. of the Amendments to the Constitution provides:

The general court shall have full power and authority to erect and constitute municipal or city governments, in any corporate town or towns in this commonwealth, and to grant to the inhabitants thereof such powers, privileges, and immunities, not repugnant to the constitution, as the general court shall deem necessary or expedient for the regulation and government thereof, and to prescribe the manner of calling and holding public meetings of the inhabitants, in wards or otherwise, for the election of officers under the constitution, and the manner of returning the votes given at such meetings. Provided, that no such government shall be erected or constituted in any town not containing twelve thousand inhabitants, nor unless it be with the consent, and on the application of a majority of the inhabitants of such town, present and voting thereon, pursuant to a vote at a meeting duly warned and holden for that purpose. And provided, also, that all by-laws, made by such municipal or city government, shall be subject, at all times, to be annulled by the general court.

Under the constitutional provisions above quoted it is my opinion that the special action of the Legislature is necessary to the erection and constitution of city governments. Indeed, no such government can be erected or constituted in any town unless it be with the consent and upon the application of a majority of the inhabitants of such town. That is, the inhabitants of a town who desire to have a city government instituted in their municipality cannot, in my opinion, be permitted or authorized to adopt a form of charter and establish a city government without first making the application to the General Court provided for in Article II. of the Amendments to the Constitution; and to establish a city government this must be followed by some action of the General Court in accordance with the provisions of the Constitution for the