152 Ga. 302 | Ga. | 1921
Lead Opinion
(After making the foregoing statement.-)
An executive warrant drawn in accordance with the plan of the legislative act here under review is quite different in character from the ordinary warrant drawn by the Governor on the Treasurer. This act authorizes the Governor to assign and set aside not- exceeding five years of the rental arising from the existing lease of the Western & Atlantic Eailroad, as a special fund to be used exclusively for the purpose of paying warrants drawn by the Governor against it in discharging obligations of the State already created and incurred by law. The Governor is authorized to discount these warrants, and he is directed to place the pro
(1) After due consideration of this important question we have arrived at the conclusion that no debt by or in behalf of the State is so created. The warrants in pursuance of the act are drawn against a certain specified fund which it is anticipated will be in the treasury to meet them at the time fixed therein for their payment, and they are to be paid exclusively out of that fund; and should it fail to materialize, that is, not be in the treasury to meet the warrants at their maturity, then the holders of the purchased and discounted warrants would have no recourse against the State on the warrants themselves; but if the money obtained by having the warrants discounted and placed in the treasury by the Governor should be used by the State in the pajunent of its lawful obligations as referred to in the act, then " The holders of said warrants shall further have all the rights and privileges which the original obligees of said then incurred obligations might have had against the State.” In other words, if any of the money obtained by discounting the warrants shall be used to pay off any part of the obligations of the State as designated in the act, then the holders of the corresponding warrants shall have all the rights and privileges which the original obligees might have had against the State, if they had not been so satis'fied. In such circumstances the original obligees would, of course,
(2) Nor is the act under consideration void, as claimed in the response, because, as is therein alleged, it contravenes article 7, section 4, paragraph 1 (Civil Code, § 6559), of the constitution of the State, which is as follows: “All laws authorizing the borrowing of money by or on behalf of the State shall specify the purposes for which the money is to be used, and the money so obtained shall be used for the purposes specified, and for no other.” The transaction designed by the act is not an undertaking to borrow money on behalf of the State and to pledge the rentals in question for the payment of warrants to be drawn against them. Much of what is said in the preceding division of the opinion is applicable here.
(3) Another ground urged why an absolute mandate should not be granted is: Because the act aforesaid is illegal and void, in that it is contrary to and contravenes article 7, section 13, paragraph 1 (Civil Code, § 6570), of the constitution of the State of Georgia, which reads as follows: “ The proceeds of the sale of the Western and Atlantic, Macon and Brunswick, or other railroads held by the State, and any other property owned by the State, whenever the General Assembly may authorize the sale of the whole or any part thereof, shall be applied to the payment of the bonded debt of the State, and shall not be used for any other purpose whatever, so long as the State has any existing bonded debt; provided, that the proceeds of the sale of the Western and Atlantic Bailroad shall be applied to the payment of the bonds for which said railroad has been mortgaged, in preference to all
Moreover, “ A long-continued and unquestioned interpretation of a paragraph of the constitution by the General Assembly, or the executive, or the officers whose duty it is to obey and carry into effect the provisions of the paragraph is a weighty argument (in favor of such interpretation.” Epping v. Columbus, 117 Ga. 263 (7), 272 (43 S. E. 803). For more than half a century the Western & Atlantic Railroad has been operated under leases from the State, and no act of the General Assembly, so far as we are- aware, has ever referred to or dealt with the rentals of the road as a part of the “ property fund ” devoted exclusively towards the payment of the bonded debt of the State; and it is a part of the financial history of the State that not a dollar of such rentals has ever been applied to such indebtedness.
Again, in Park v. Candler, 113 Ga. 647 (39 S. E. 89), a petition for mandamus was brought by the Governor against the treasurer to compel him to pay certain executive warrants drawn (in accordance with the act of the General Assembly of December 8, 1897) upon the school fund for the payment of salaries of teachers
For the reasons stated, namely, the entire failure of the framers of the present constitution (1877) to refer in any way, either in resolutions or debates or otherwise, to the property right of the State to receive a large sum of money which the lessees of the Western and Atlantic Railroad had agreed to pay the State month
It is, however, said, in effect, that the matters to which we have referred in this division of the opinion do not authorize our conclusion, because the General Assembly has never, prior to the act of August 5, 1921, which we are considering, authorized the sale of any of the rentals of the Western and Atlantic Railroad, and that it is only where property belonging to the State is authorized by the legislature to be sold that the constitution expressly declares that the proceeds of the sale shall be applied exclusively to the payment of the bonded debt of the State. The question is, whether the right of the State to receive the money — the rental, under contract, for the use of the Western and Atlantic Railroad — is included in the phrase of the constitution, “any other property owned by the State.” No contention is made that when the State receives the rental at its maturity it becomes a part of the “public-property fund” to be applied exclusively to' the payment of the State’s bonded debt; but it is urged that when the General Assembly authorizes a sale of any portion of the ren
The General Assembly in 1897 (Georgia Laws 1897, p. 70) authorized the Prison Commission to establish a prison farm (Civil Code of 1910, § 1203), and declared (§ 1206) that “The commission shall sell, to the best advantage, all surplus products of the penitentiary, and shall apply the proceeds thereof to the maintenance of the institution as far as necessary. Should any surplus funds arise from this source, they shall be paid into the State treasury annually; and the commission shall, at the end of each quarter, make to the Governor-a detailed report of all such transactions; provided, the commission shall have authority to furnish such surplus products, or any part thereof, to the Georgia State Sanitarium, the Academy for the Blind, at Macon, and to the School for the Deaf, at Cave Spring, should this be found practicable.” In 1905 (Georgia Laws 1905, p. 127; Penal Code, § 1237 et seq.) the General Assembly established the Georgia State Reformatory, and declared (Penal Code, § 1255) that “The commission shall sell to the best advantage all agricultural products not used in the reformatory, and shall apply the proceeds thereof to the maintenance of the institution as far as necessary. Should any surplus funds arise from this source, they shall be paid into the State treasury annually; and the commission shall, at the end of each quarter, make to the Governor a detailed report of all such transactions.” So these constitute two instances (and others might
It is argued for the plaintiff in error that if the State can sell the rentals of the Western and Atlantic Eailroad for five years, it can sell them for twenty years, or for fifty years. At least within reasonable limits, that may be true. It is further claimed that it would impair the sale value of the railroad property for the State to grant a long lease, and then sell the rentals. This may also be true. But is there any constitutional limitation against the General Assembly exercising its discretion in this respect ? “ The constitutional provision in question constitutes no lien or mortgage on the Western and Atlantic Eailroad. It is merely a direction, a binding direction, of course, to the General Assembly, that ‘ whenever it may authorize the sale,’ if it ever does so authorize, the proceeds shall be used to pay the bonded debt of the State. The legislature is not required to sell the railroad, and it is not bound to maintain it or to protect its sale value in any other way, so far as any constitutional requirement is concerned. The legislature, if it saw fit to do so, could lease the railroad for so small a rental that no one would care to buy it. This would reduce its sale value, but it would not be an act contrary to the constitution. In substance we are dealing with the power of that body supreme in its discretion (except as limited by direct constitutional language), the legislature, of earning and using revenue from this valuable piece of property, which it has the discretion to sell, but which it may use as it sees fit until it does decide to sell. If and when the legislature authorizes the sale, the constitutional direction will come into play. Until a sale is authorized the legislative discretion is supreme and untrammeled. It may
No scheme or fiscal policy for the State appears in any direct or express language of the constitution limiting all expenditures for the State in any one year to the revenues of the State derived from all sources during that year, and declaring that the revenues shall not be anticipated. Nor does any such fiscal policy arise by necessary implication from the constitutional declarations cited in this ground of the response, namely, those conferring the power of taxation on the General Assembly, limiting the rate of taxation to five mills for any one year, providing that all revenue and appropriation bills shall originate in the House, and that the State shall contract no debt except to supply such temporary deficiency as may exist in the treasury in any year from necessary delay in collecting the taxes for that year, limiting the amount to be so borrowed, and declaring that it shall be repaid out of the taxes levied for the year in which the loan is made. As already held, this legislative act does not seek to authorize the creation of a debt, but it is evidently designed to provide for the pajonent of debts owing by the State, and to accomplish this end it authorizes the sale of the State’s right to receive the rentals of the Western & Atlantic Bailroad for a limited period in the future. There is nothing in the constitution prohibiting the General Assembly from anticipating revenues of this' character, nor requiring it, in leasing that road, from time to time to allot each year’s rental of the property to that particular year’s income or revenue to be used in discharging the appropriations for that year.
Judgment affirmed.
Dissenting Opinion
dissenting. Art 7, sec. 13, par. 1, of the constitution
of the State (Civil Code of 1910, § 6570) provides as follows: “ The proceeds of the sale of the Western and Atlantic, Macon and Brunswick, or other railroads held by the State, and any other property owned by the State, whenever the General Assembly may authorize the sale of the whole or any part thereof, shall be applied to the payment of the bonded debt of the State, and shall not be used for any other purpose whatever, so long as the State has any existing bonded debt; provided, that the proceeds of the sale of the Western and Atlantic Bailroad shall be applied to the pa)\ment of the bonds for which said railroad has been mortgaged, in preference to all other bonds.” In construing the words of a constitution the ordinary meaning is to be given them. Even where a word having an acquired and fixed technical, as well as a popular meaning, is used in the constitution, the courts will generally accord to it its ordinary signification, unless the very nature of the subject indicates, or the text suggests, that it is used in its technical sense. 6 Am. & Eng. Enc. of Law, 924-5. Applying the above rule, the language of the constitution, as quoted above,