*1
146
ing deals with particular act and perform a Siefert, DAVIS, Robert Emil S. Russell E. assumption, upon that agent Christensen, Youmans, J. W. E. Paul E. Tuttle, Prescott and John bondhold I. as a estopped against representing ers committee the holders agent’s denying the person from third Dormitory Bonds of 1950 Revenue * * authority, Northern Idaho Plaintiffs, Rhodehouse, 77 v. Hunsaker See v. hound A 289 P.2d scope his MOON, within the agent Ruth acts of his Treasurer of the State of Idaho, Defendant. Denney v. authority. Bevercombe apparent 427; Arens v. Co., 231 P. & No. 8325. Clark P.2d 119 Scheele, Supreme Court of Idaho. P.2d 1016. Tarr, v. disputed, Nov. agency existence
Where
Thorn-
jury.
for the
fact
question
is a
it
103,
ton v. of er assignments additional admissibility question appellant
ror witness, testimony parts of respondent at Wilde, manager of
Boyd testimony challenged Falls. prac of business course regular
goes order receiving the respondent
tice of, a record making shipping,
for, to the Sum- delivered sold
merchandise This evidence was Company. Supply
mitt provisions under the proper
competent lay foundation 9-414,1.C., to Section respond the records of admission Sum- between transactions covering
ent respondent. Company and Supply
mitt is af- trial court judgment respondent. awarded Costs
firmed. KEETON, AN-
TAYLOR, J.,C. SMITH, JJ., concur.
DERSON *2 Moffatt, Boise, plaintiffs. C.
Willis *3 SMITH, Justice. 15,
September 1950, state board of education as the acting board of trustees College of of Education Northern Smith, Gen., Atty. R. Graydon W. J. college an determined needed Gen., Attys. for Leggat, Asst. Smead, N. J. dormitory. The thereupon, additional board defendant. adopted, pursuant to its resolution and au- Code, 33, 38, thority Title C. of Idaho known 1935, as the Educational Institutions ofAct $375,000 issued and sold interest bearing “Dormitory 1950”, Revenue of Bonds in 33-3101, n denominations Laws c. sec. Sess. and, $1,000 with each of Col- changed the name Northern Idaho of therefrom, caused proceeds lege Normal of Education Lewis-Clark prop- is the building The be constructed. School; study, provided course of that its incomes Net of Idaho. of erty period more equivalent cover a not the col- of dormitories from such and years, than two to train teach- designed the bonds. of pledged were lege schools; ers elementary transferred for amortiza- an were issued on The bonds jurisdiction board of the school the state payments of with tion basis of of regents education and the board to become due November sum Idaho; the University provided that un- thereafter year 1 of each November on in existing references statutes to North- due semi- paid, interest to become til ern be con- of Education 1 of each annually May 1 and November strued referring to the normal school The bonds May 1, beginning year, name, under its appropria- new an and made Security Bank payable at First were made tion to the state board of education Association, Lewiston Idaho, National purposes educational the school Lewiston, Idaho, Branch, designated July 1, bi-ennium 1955 to June Code, trustees, pursuant board agent for paying as the (h), 33-3806 The 33rd also enacted Idaho in- paying purpose of Sess. Laws which became law of the bonds. terest approval without governor. legislature thereby “Dormitory created regular ses- Legislature, at its 31st Redemption Bond treas- Fund” not an did make sion ury appropriated $100,000 thereto opera- state board education by the state disbursed treasurer accord- Educa- of Northern provisions ance with the act. college, lack resulting because of tion. funds, during operating as ceased provides The act state treasurer operate and did the summer shall remit a sufficient sum First Se- September capacity until about Association, curity National Bank it did not have students during such time *4 Branch, Lewiston, Idaho, as the Lewiston faculty, revenue nor derive from issue, paying of said designated agent bond proceeds dormitory from the constructed pay sum of bonds Nos. to to issue, or from its dormito- bond such inclusive, upon and the interest accrued ries. 1,May bonds as that of the pay the same shall after notice the bank regular its ses- Legislature, at
The 33rd provided, upon presenta- act Code, given as amendment to by sion by May why hank cause she as treasurer should not do tion of the bonds to the by upon receipt sum the so. writ issued command- and alternative pursuant ing to De- payment. bank from the state treasurer defendant to such make presented treasurer thereupon quash the bank’s claim to the fendant moved the al- bonds pay such for an amount sufficient to ternative writ.
and interest. urges ground Defendant as her first directs the state board of educa-
The act quashing the writ that Idaho Sess.Laws moneys pay- for the use available 1955, c. 277 is unconstitutional in that it upon interest when due the bonds ment of loans of the credit State of Idaho matured have not of, corporations or in aid individuals and due; pro- the same becomes thereof as VIII, contrary to Idaho Const. art. sec. 2. if there be insufficient funds for vides legislature Defendant contends that the treasurer, upon purposes the state by enactment of Idaho Sess.Laws c. provided, as the act shall notification 277, attempted to convert into a debt of the paying agent bank as funds transmit .the state that which not and was so never pay obligations. sufficient to and, intended when the bonds were issued provides bonds re- The act then that a moral will not sustain the by payment dormitory bond from the tired unless made for a redemption fund shall be delivered purpose, citing Parsons, State v. held for state treasurer and such officer 80 P.2d Educational Institutions pledged future reimbursement from sources particularly Act 33- I.C. secs. payment of the bonds. 3809 and 33-3810. refused honor a The state treasurer It is true that under said act the owners paying agent bank as claim of the dormitory of the revenue bonds had no claim moneys transmit to it the general against the fund of the state of 25, inclusive, and the ac- Nos. 1 bonds only against Idaho but dormitory fundsbut crued bond interest. that, pursuant is also it true legis- its Plaintiffs, petitioners, thereupon latively delegated authority made the state board application to this Court for an of education had original determined the dormitory incomes, compelling writ of mandate de- operation alternative available school, amply treasurer to transmit to as as sufficient pay fendant off moneys thereupon sufficient paying agent to retire authorized bank issue of principal of said and the in- pay according to the con- provisions terest, conformity with the tractual thereof. It is likewise 277, or show true that the Northern of Idaho Sess.Laws Idaho College of
151 407, the Idaho 242 incomes P.2d 124. Furthermore inoperative and 'Education became prohibited legis reason Constitution nowhere the nil dormitory became its funds 1955, enacting lature from at Idaho Sess.Laws legislature (cid:127)of the Idaho’s inaction of 277, thereby amending modifying nor .its general session of in the contract which its governmental accomplished have The state could education, strumentality, the state board of building in dormitory (cid:127)construction of the entered into with the holders the dormi of a operation put into place the first tory pursuant Educa revenue bonds The building. plan payment of the for the 1935; particularly tional Act of Institutions acquired through building, state owns the ap right is this true inasmuch as no vested instrumentality for the “governmental its pears adversely by legisla affected learning”, knowledge and of (cid:127)dissemination tion, and since the bondholders indicate yet 33-3803; no but as I.C. accept herein their desire to the conditions building has cost construction legislation. legislature The has through its Certainly the state paid. been power legislate unlimited legisla where pay for power possesses legislature Macey prohibited. is State ex rel. plan de- put effect into a building, supra; Girard, Johnson, v. Koelsch v. 54 authority including the it, pay for signed to 816; 452, Idaho 33 P.2d McGoldrick Lum neces- if therefor levy collect taxes 704, Co., Co. 54 35 ber Benewah Idaho v. reim- proceeds appropriate sary and 659; Price, Boughton Idaho P.2d v. 70 the mon- bondholders pay to the burse and 243, 286; Refining 215 P.2d Utah Oil Co. in the construc- furnished eys expended and Hendrix, supra. v. that the build- provided building, tion of County purpose; Ada v. public ing serves a Inquiry is now order determine 409, 92 394, P.2d Wright, 60 ' whether appropriation evidenced Idaho Sess.Laws c. 277 intended has absolute con legislature private to be used for a purpose. aor óf the state. finances' trol over the to the creation legislature as power of the purpose act is of state indebtedness, expenditure or the forth 1 set in section thereof as follows: plenary, making appropriations, funds, or “Section 1. The State Board Ed- state Consti only as limited (cid:127)except acting ucation State Banks, v. 33 Davis ex rel. State tution. of trustees the board of the Northern 472; Macey ex rel. P. 198 did, on 588; P. Rob 296 50 Idaho Johnson, v. 1, 1950,pursuant November 603; author- P.2d Enking, v. inson Chapter granted by ity Title Parsons, 58 Idaho P.2d v. Code, issue Hendrix, and publicly sell Refining v. Co. Oil Utah 1,May since North- issue has been revenue default principal amount ern Education maturing Sev- on Hundred November due of Three sum 1952, 1953 Dol- and 1954 enty-five ($375,000.00) Thousand default and interest there will be constructing lars purpose *6 payable of the accordance with terms institution, the and said dormitory at said and during bonds The sale bonds the said proceeds from of Idaho, rec- Pur- the State such expended purpose. were of of for of ognizing that the bonds State of of the suant to the Statutes College Educa- the Northern Idaho of proceedings and taken the issued, herein, by the as set forth of of Board Education the State of of Board of Education the State interest and the of Idaho, acting of the of as the trustees paid income was to be said bonds from College of Northern Idaho operation the rentals and obtained from the an constitute valid the Ida- at Northern dormitories of of instrumentality the State said College of Education. ho The of of and desiring holders such bonds the purchasers bonds are now held the of this protect the credit and other pur- faith and were so good thereof in of higher learning institutions in the proceed- the terms and chased under of Idaho, makes this enactment ings of and the Statutes of the sale of purpose fulfilling obliga- the of the for The Idaho. terms and condi- State of said tions of accordance with provide pay- tions of said for sup- (Emphasis terms thereof.” semi-annually ment of interest on No- plied.) May 1 of year, each and vember and of the retirement for purpose “Chapter referred of the of said bonds on an amortized amount Code,” 38, Title which is the twenty years one to from basis from of Institutions Act Educational stat- issue, beginning of November date peace, preserve public health and ed “to income the dormi- from ** safety, Idaho Sess.Laws prin- pledged to tories of E.S., c. 15. Such includes sec. act 1st. prob- has been and and interest cipal Normal School under its Lewis-Clark will be some time ably insufficient changed as so Sess.Laws name said bonds pay of legislature established 76. The c. status the North- inactive
due
of
purpose
“training
and ed-
school
and
Education
ern Idaho
ucating teachers in the art
instruction
whole
said bond-
on the
interest
“required
purposes”
this
or convenient for the
public schools
in the
governing
and
school,
33-3802,
a gov-
“as
I.C. sec.
branches
state,
teaching the various
instrumentality
the dissemina-
ernmental
education.”
public school
pertain
good
ato
knowledge
learning”.
tion of
I.C. sec.
Idaho Sess.Laws
While
33-3101.
sec.
I.C.
ap-
public purpose of
“public”
33-3803. The
word
76, changed the
propriation
expenditure
con-
and its
as so in-
schools
“elementary”, nevertheless
tended,
system
public good,
in the interests of the
public school
a
tinue as
n ofthis
objectives
in furtherance of the educational
state.
state,
clearly expressed.
“board”,
inter alia to
act defines
Said
furtherance
education
universal
education,
the state board
mean
ly
public purpose.
regarded as
The Con
supervision of
general
in it the
vested
has
mandatory
stitution makes it
duty
public
institutions
educational
legislature to
establish and maintain a
Idaho;
system of the State
school
general,
system
thorough
universal and
Const,
IX,
therein de-
“bonds”
art.
public,
schools,
free common
also to es
by an ed-
the bonds issued
means
fined
support
tablish
educational institutions
act,
institution named
ucational
may require.
good
as the
An ed
im-
structure or
“project” includes
institution is
ucational
established for no
*7
by,
may
required
provement which
be
personal profit
only
public
serves
any
in-
purpose
for
(cid:127)convenient
IX,
benefit.
Idaho Const. art.
sec. 1 and
stitution,
The act
dormitories.
including
1;
X,
Opinion
In re
Justices,
sec.
art.
named
provides
each institution
that
further
N.H.,
It * * * corporation nicipality or by the can consideration here under propriation that such enactment public fact for a as regarded intended any sense not in Child, purpose. Newland 530, v. 73 Idaho private pur furtherance use in Further, 254 P.2d enactment contrary, invalidated, pose. On the in light public not of its expended to be merely intended designed and because purpose, the obligation acquired by building subject Lewis- in relation to the of a the state payment in matter legislation a plant is moral rather its School a than a Normal Clark 154 one,
mandatory Irrigation ment; Gem District as heretofore stated appropria- Gallet, 519, 128; v. 253 P. Newland tion is payment intended for public- of a Child, supra; States, 133, C.J.S., v. 81 building required by, § or convenient for 1150; p. 621, 42 Funds, Public purposes of the normal school gov- “as a Am.Jur. p. 763, private nor fact that in a instrumentality ernmental for the dissemina- organization dividual or may benefit there knowledge learning”. tion I.C. secs.. by. Child, supra; Newland v. Krebs v. 33-3802, 33-3803. Board of Trustees of Teachers Retirement Defendant’s contention is further answer System, 410 Ill. 102 N.E.2d 27 A.L. Irrigation Gallet, ed Gem District v. 43 1434; Stanley R.2d Jeffries, v. 86 Mont. 519, 528, 128, 131, 253 P. applicable 166; 284 P. 70 A.L.R. Veterans language, as follows:
Welfare v. 189 Board Cal. 208 Jordan, 1515; Diego County P. 22 analysis, A.L.R. San last appropria- “In its Hammond, v. Cal.2d 59 P.2d improvement sanctions the direct 1155; Compton Butler A.L.R. v. protection prop- of the state’s own Junior Dist., 417; Cal.App., 176 P.2d erty. It is a cash transaction States, 134, 137b, C.J.S., pp. §§ has determined that the- 5, p. Public Funds sec. quo. quid shall receive pro its Am.Jur. gives nothing;
The state it lends noth- urges remaining Defendant as its ing; recognizes it discharges writ, ground quashing that Idaho past moral benefits ac- 1955, c. 277 is Sess.Laws unconstitutional necessity crued and of further to ac- requires the act the state treasurer object crue. The sole of the act was disburse state funds without examination the creation and maintenance of a board of examiners the state claima use.” state, contrary to Idaho against the Const. quash Defendant’s motion to the alterna- IV, sec. 18. contention is not well art. per- tive writ is The writ is denied. made taken. manent. appropriation is intended to be TAYLOR, J., and C. PORTER and. coming claim expended in *8 ANDERSON, JJ., concur. provision purview the of said within the simply This is true because Constitution. KEETON, (dissenting). premises Justice against the existed in the
no claim the prior act, to of the enactment state opinions Dissenting are probably of little- exists or can come none into and existence conclusions, However, general value. my the state reason of against the enact- proceeding in this differ so widely from moral, Court, shall of the of Idaho and State majority of the by the those reached against be enforceable the nor general not being of question submitted and the payment shall be my thereof briefly .enforceable importance, I shall any out of other funds premises. views pledged than the and income revenues November, State Board of In and assigned the holder or holders authority, Tit. pursuant of such bonds.” inter- I.C., $375,000 worth issued 38Ch. improvement, special dormitory, bearing est 33-3809, I.C., specifically prohibits Sec. paid only from revenue bonds, be revenue in Act institution named from con- payment. for such pledged tracting debts for which the State shall manner be liable. issuing of the authorizing the Act pro- specifically I.C., 33-3810 Sec. bonds issued, thus The bonds dated November : vides 1, 1950, payable period thirty are over a pursuant this issued “All bonds years, starting ending with and of the institution obligations be act shall 1980. Such bonds were sold on the market only ac- payable such bonds issuing defaulted, and thereafter revenues thereof and the terms with payment cordance pledged being to their insufficient special general, not pay according shall them to their tenor. of Idaho. of the state otherwise The holders of such defaulted bonds now debt, constitute a not shall bonds Such out, $100,000 ask the State to bail them and moral, the state legal or Thirty-third Session of Leg- was face, and shall on their recite so shall islature, S.L., 277, p. 663, Ch. state, nor against enforceable not be p. 665, appropriated pay the defaulted enforceable thereof payment shall numbered bonds accrued de- institution is- any funds out upon due May faulted interest bonds to the income than suing said Legislative pro- Said Act further assigned pledged revenues sums to vides of, the holder the benefit trust inor bondholders, the State of Idaho shall be bonds.” holders rights holders, to all in- entitled upon a lien revenues cluding pledged to the provision: contain The bonds bonds. payment of said obliga- are this issue “The Representatives pur- bondholders only in ac- payable tions presented Act a claim suant hereof terms with cordance payment. Treasurer demanded debt, legal or constitute -shall *9 why- defaulted reason Treasurer refused to honor'the voucher see no bonds, S.L., p. improvement school ground that Ch. on the Junior bonds, any issue,, Bill or other similar appropriating No. said defaulted Senate are, any Art. if there cannot in conflict with be transferred to money, is Sec. under similar the Legis- reads in State Acts of the Constitution which lature. similar reasoning Under follows: State- as special improvement up could take highway not, credit shall “The districts, bonds issued road counties or manner, given, or loaned or theory cities that schools and roads- individual, association, aid of proper government. are a function of * * municipality corporation; supplied.) (Emphasis By Legislature the Act the ignored has specific terms and conditions under plain apparent me seems to It question which the bonds in were issued. S.L., Legislature by Ch. con- It me that the seems to conclusion is in- a debt individuals a State owed to verted escapable Act only that the aids the bond- obliga- educational institution into holders, credit of and the the State loan- tion, debt or never existed which to such bondholders ed individuals. could exist. The has at- question constitutional, being inAct as held public moneys tempted appropriate majority, I can visualize continual bonds, inter- Treasury. raids on the State Pressure never and never could create est which did groups propaganda committees can State. obligation of the The bonds an arguments logical advance for similar fu- only made collectible enforceable were Acts, relieving ture most anybody from College pledged funds of the out of poor investments made on the credit of purpose and the bonds on their face some State institution. provide. so specifically acquiring such my defaulted opinion The State thus In the Act clearly violates necessity have into must entered of Art. Sec. Constitution and business, buying Treasurer, here, defendant is not a the bond was correct government. honor the refusing of State present- bill when function ed. buy the can defaulted If purchase prevent the nothing to alternate writ should quashed
I see special improvement, proceeding similar and the many dismissed.