74 P. 962 | Idaho | 1903
This is an application for a writ of mandate to H. N. Coffin, treasurer of the state of Idaho. It involves the constitutionality of an act of the legislature entitled, “An act to provide for the care and keeping of moneys in the custody of the treasurer of the state of Idaho, and prescribing penalties” approved the 4th of March, 1903, Session Laws of 1903, page 375. The board of deposits created by said act acting under and in pursuance of the authority vested in it, considered, the application of the Boise City National Bank for designation as a state depository, and from an investigation and examination of its financial condition and resources found that it was solvent, and thereupon ordered that said bank be designated as a state depository and allotted to it the sum of $1,000 upon its compliance with the conditions required.of depositories under
The first question discussed in the brief of counsel is, Is the subject matter of the act in question expressed in the title?
“An Act to Provide for the Care and Keeping of Moneys in the Custody of the Treasurer of the State of Idaho, and Prescribing Penalties.
“Be it enacted by the Legislature of the State of Idaho:
“Section 1. The Governor, Attorney General and State Auditor are hereby constituted a Board of Deposits, of which the Governor shall be'chairman and the State Auditor, secretary. A record of the proceedings of said board shall be'kept by the secretary, in the books provided for the purpose, and a transcript of such record, or any portion thereof, shall be admissible in evidence in all courts of this State.
“Kegular meetings of said board shall be held at the State capitol building at such times as said board shall, by rule prescribe, and said board may hold, from time to time, such adjourned or special meetings as the business before it may require, such special meetings to be called by the Governor or any two members of said board by written notice filed with the Auditor and served upon the other member or members of said board, if within the state, at least twenty-four hours prior to said meeting: Provided, That when all members of said board are present at any meeting due notice thereof shall be deemed to have been given.
“Sec. 2. Any National or State banking corporation, resident and doing business within this state, complying with all the conditions and requirements of this act, may, upon being so designated by said board of deposits, become a state depository.
“Sec. 3. Every such banking corporation before it be permitted to receive on deposit any state moneys shall file with the State Treasurer a good and sufficient surety bond to the
“Bonds of the State of Idaho and those for the payment of which it is ultimately liable; the bonds of the several counties, • cities, towns, villages, irrigation and school districts of this > state; the bonds of the United States; the warrants of the State of Idaho and of the several .counties thereof. No such' bonds or other collateral shall be approved by the board for more, than its par value, nor approved if its then market value ; is less than 95 per cent, of its par value, nor if there has been a default within five years in the payment of the principal or interest of any obligation issued by the same payer. The securities deposited under the provisions of this section may be' withdrawn from time to time when in excess of the requirements, but the total amount of such collateral securities shall. at no time be less than $1.10 for each dollar of State moneys so. held on deposit by the banking corporation given such security. ' . ’
“Sec. 4. The Board of Deposits shall not approve the bond' of any such banking corporation until fully satisfied that said ' bond is good and sufficient to indemnify the state against loss and : that .‘said corporation is solvent and has unimpaired, the paid-up capital claimed by it; and said board may at any time-require any such depository to furnish new or additional bond-
“Sec. 5. The Board of Deposits, by one or more of its number, or by some qualified person designated by it, shall, before designating a depository, malee thorough examination and investigation into the condition of any banking corporation which may make application to become a State Depository, and thereafter, as it deems necessary, malee ‘such investigation and examination of the condition and resources of the said corporation as it may deem necessary or advisable, and any such banking corporation which shall fail or refuse to afford said Board of Deposits or the person designated by it, every facility for ascertaining its financial condition and resources, shall not be designated as a depository and, if previously designated, such designation shall be forthwith revoked by said board.
“See. 6. Every such State Depository shall, on the fifth fix the rate of interest to be paid by said depositories upon all State moneys so deposited with them, which rate of interest shall be the highest obtainable: Provided, That such rate of interest may differ for different depositories, but in no case shall be less than two per cent, per annum on daily balances. The amount on deposit in any designated depository shall not, at any time, exceed ninety per cent, of its paid-up capital and permanent surplus, nor more than the penalty of the surety bond furnished by it.
1 “Sec. 7. In case two or more banking corporations shall offer the same and highest rate of interest upon State moneys to be so deposited with them, the Board of Deposits may designate the one to receive such deposits, or may apportion the amount among such banking corporations.
“Sec. 8. Every such State Depository shall, on the fifth day of each month, and oftener if required by said board, file with the State Auditor and State Treasurer, in duplicate, a
“See. 9. All offers of interest upon deposits of State moneys, shall be in writing, addressed to the Board of Deposits, and filed with the State Auditor. No such offer shall be given publicity until the designation of the depository or- depositories, has been made, whereupon said board shall make public the name or names and location or locations of the several designated depositories, the sum on deposit in each, and the rate of interest such deposits are to bear,
“Sec. 10. The Board of Trustees of the capitol building shall, as soon as practicable, provide a fire and burglar proof vault and burglar proof safe of sufficient size and suited to the requirements of the State Treasurer in the care and safekeeping of the State moneys, and there is hereby appropriated for such purpose out of any funds in the treasury, not otherwise appropriated, the sum of seven thousand five hundred dollars. From and after the completion of said vault and the procuring of said safe, all State moneys in the custody of the State Treasurer, not otherwise deposited as in this act provided, shall be kept in said vault and safe and in no other place. A violation of this section shall subject the State Treasurer, upon conviction thereof, to pay a fine of not less than five thousand nor more than ten thousand dollars, or by imprisonment in the
“Sec. 11. Whenever the Board of Deposits shall have designated a depository or depositories and all the conditions required of such depository or depositories shall have been complied with, the State Auditor shall notify, in writing, the State Treasurer of the action of said board, giving the name or names, and location or locations of such depository or depositories, and the amount of deposit allotted by said board to each and the Tate of interest which said deposit or deposits are to bear: And it is hereby made the duty of the State Treasurer to forthwith transmit to such depository or depositories so designated the amount of State moneys allotted to each, the expense of insuring and transmitting said moneys to be paid by such depository .or depositories in advance of such transmission, and any and all sums so deposited in such depositories shall be deemed to be in the State Treasury, and such Treasurer shall not be liable for any loss of such deposits, or any part or portion thereof, resulting from the failure or default of any such depository, not resulting from the fault or neglect of the Treasurer or his subordinates.
“Sec. 12. As funds, from time to time, shall be required by the State Treasurer to meet the lawful demands upon the treasury, or as funds shall be required for investment under the provisions of sections 3 and 11 of Article 9 of the Constitution or of the laws passed pursuant thereto, he shall draw upon such depository or depositories and in such amount or amounts as shall be designated by the Board of Deposits.
“In designating depositories, banking corporations of this State shall be given preference over those without the State, and no State moneys shall be deposited under the provisions of this act, in any depositories out of this State' so long as there be banking corporations within the State offering to pay the minimum rate of interest provided by this act and otherwise to comply with all the provisions thereof, but any portion of said State moneys, available for deposit in such depositories, upon which the minimum rate of interest established has not been offered by any banking corporation of this State may b*
“See. 13. All acts and parts of acts in conflict herewith are hereby repealed.
“See. 14. An emergency existing therefor, this act shall take effect and be in force from and after its passage.
“Approved the 4th day of March, 1903.”
An analysis of the act as above set out will disclose that the several sections thereof provide in substance as 'follows:
Section 1 provides for the creation of a board to be called the “Board of Deposits.”
Section 2 authorizes or creates an institution to be known as a “State Depository.”
Sections 3, 4, and 5 prescribe the character, conditions and. provisions of bonds or other security to be given by such depositories as a condition precedent to receiving public moneys; deposited; and prescribe the powers and duties of the board in examining into the financial condition of such banks and. institutions as apply to be designated as such depositories.
. Section 6 authorizes the establishing of a rate of interest by the board to be paid the state for the use of such moneys by-said depositories, and.-.prescribes the -maximum sum of money which can be deposited with any one banking institution.
■ Section 7 directs the apportioning of the public funds among two or more; banks applying for such moneys.
' The eighth section provides for monthly and quarterly states -ments by depositories, of amount of money on deposit, together with accrued interest thereon at the close of business on each day of the month. ' • ,
Section '9 prescribes the nianner of making offers to pay .interest. on -the public, funds, and- imposes secrecy on the board as.
Section 10 directs the board of trustees of the eapitol building, which consists of the governor, Secretary of State and treasurer, to provide a fire and burglar proof vault and safe for the use of the state treasurer, and appropriates the sum of seven thousand five hundred dollars for such purpose and directs the state treasurer to keep the moneys in his hands not deposited under the provisions of the act in such safe and vault, and provides heavy penalties for a failure so to do.
Section 11 provides that upon notice from the board of the amount awarded to any depository and the name and location of such depository, and that such depository has complied with the requirements of the law, the treasurer shall thereupon deposit in such bank the amount authorized by the order of the board; and it will be observed that this section closes by saying : “all sums so deposited in such depositories shall be deemed to be in the state treasury, and such treasurer shall not be liable for any loss of such deposits or any part or portion thereof resulting from the failure or default of any such depository not resulting from the fault or neglect of the treasurer or hie subordinates.”
Section 12 provides that as funds shall be required from time to time to meet the demands upon the treasury, that the treasurer “shall draw.upon said depository or depositories and in such, amount or amounts as shall be designated by the board of deposits.” It is there further provided that banking institutions ' of the state shall have preference in designating as state'depositories; but that in case all the funds are not applied for by the banks of'this state, that the same may be deposited" in any bank either in New York or Chicago having a cápital of 'one million dollars, and. that such institutions shall not'be Required to give any bond or security whatever for the use of such funds.
This court is now, as it was when that case was written, impressed with the importance of giving force and effect to every legislative enactment which can reasonably be said to come within the legislative power as prescribed and limited by the provisions of the constitution. We are in entire accord with the language used by Mr. Chief Justice Bartholomew in State v. Nomland, 3 N. Dak. 427, 44 Am. St. Rep. 572, 57 N. W. 86, cited by both plaintiff and defendant, wherein he said: “Refinement upon this constitutional provision and the enforcement of a narrow construction would greatly embarrass the legislature and nullify a large percentage of most beneficial legislation. This court should be careful and destroy no legislation sanctioned by the law-making branch of the state government, unless such legislation be a clear violation of the constitutional requirements. But we have no duty higher or more sacred than is the duty to preserve in all its integrity every provision in the fundamental law of the state.”
The provisions of the constitution are applicable alike to the legislative, executive and judicial departments of the state government, and by its terms it has imposed upon the courts the duty of determining when and in what cases its provisions have been violated and of enforcing an observance of its mandates.
The supreme court of Minnesota in State v. Cassidy, 22 Minn. 324, 21 Am. Rep. 765, after reviewing a great number of authorities on this subject, concludes its review with the follow-ing very apt announcement: “Under such rule, as is exemplified by these cases, if the legislature is fairly apprised of the
• It seems to have been generally recognized by the authorities as the intention of the framers of such a constitutional provision to require a title sufficiently definite and comprehensive as to indicate to one reading it the general scope and purpose of the legislation intended by the act, and that if the title be sufficient for that purpose it will be held as including all necessary and incidental legislation necessary to make the general purpose of the act operative.
As will be seen, Judge Cooley and many of the ablest authorities use the word "index,” and say the title is "the conclusive index to the legislative intention.” The framers of the constitution evidently meant that the title to the act should indicate, both to the lawmaker and the citizen, the general scope and purpose of the legislation intended, and that such title should put the citizen upon notice of the proposed legislation.
Under our form of government every citizen has a right to be heard upon any and all questions of proposed legislation. The right of petition is recognized and is often found to be one of the greatest safeguards against the passage of unwise legislation as well as a means of securing beneficial laws.
With the foregoing principles in view, let us consider the title to the act in question. It is clear to our minds that the fundamental purpose and object of the act before us was to secure interest upon the public funds, and provide for the use of those funds by such institutions as might be designated by the board of deposits as state depositories. All other legislation found within the act is simply the instrumentalities for the carrying into effect and operation the main purpose of the bill. The creation of the board, the designation of depositories, the taking of security, the examination of the financial condition of the depositories, the mailing of statements by such de
• It is ably and earnestly argued by counsel for plaintiff that the public funds, although they may be deposited in such depositories under the provisions of this act, aTe still, in contemplation of law as embodied in this bill, within the custody and keeping of the state treasurer. As we gather from all the latest and best lexicographers, “custody” means a keeping, ¡guarding, care, watch, inspection, preservation or security of
The question here would naturally arise, Could thé legislature or the citizen reasonably gather the purpose and object of this act as found in the bill from its title? Would the title put a person reading the same on notice of the contents of the act ? We think it would not. It would be quite a sweep of imagination to gather from the language: “An act to provide for the care and keeping of moneys in the custody of the treasurer of the state of Idaho and prescribing penalties,” the vision of a law authorizing banking institutions both within and without the state to become depositories of the public funds, paying interest thereon, and using such moneys in trade and commerce and the subjecting them to the order and direction of the board of deposits of which the treasurer is not a member, and the entire removal of the funds without his custody and control. We think that the citizen, even though he might be skilled in the making and interpretation of laws, would be justified in concluding from this title that the act over which it was-hovering was some kind of a provision providing aids and safeguards for the assistance of the treasurer in keeping and caring for the public funds. It would be reasonable to look for a law under this title along the lines of and in harmony with the provisions of section 10 of the act, and indeed we think that' section comes clearly within the provisions of the title, but the act stripped of all the other sections would leave this section of no force or vitality.
Counsel for plaintiff cite us to Hopkins v. Scott, 38 Neb. 661, 57 N. W. 391, and Seay v. Bank, 66 Ga. 609, as sustaining titles to depository laws similar to the one here enacted. An examination of chapter 50, Session Laws of 1891, of the state of Nebraska, referred to in Hopkins v. Scott, will disclose an entirely different title to that act from the one under consideration. There the title was; “An act to provide for the depositing of the state and county funds in banks.” There can be no doubt about the purpose of the title to the Nebraska act, and there is no similarity between the title to that act and the title
’ However much we may personally and individually regret the necessity which impels us to hold the act in question invalid and void, we are nevertheless impressed with a sense of duty under’the express mandates of the constitution, and therefore hold that the title to the act before us is not sufficient and that the act is void. The conclusions reached as to the sufficiency of the title to the act makes it unnecessary for us to consider any of the other questions raised in the proceeding. The alternative writ of mandate is quashed and the petition denied. No costs awarded.