B. F. Sturtevant Co. v. Industrial Commission

202 N.W. 324, 186 Wis. 10, 1925 Wisc. LEXIS 232
CourtWisconsin Supreme Court
DecidedFebruary 10, 1925
StatusPublished
Cited by29 cases

This text of 202 N.W. 324 (B. F. Sturtevant Co. v. Industrial Commission) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B. F. Sturtevant Co. v. Industrial Commission, 202 N.W. 324, 186 Wis. 10, 1925 Wisc. LEXIS 232 (Wis. 1925).

Opinions

Crownhart, J.

The compensation act of the state of Wisconsin was passed in 1911. Its general purposes were very carefully considered, and its constitutionality was upheld in Borgnis v. Falk Co. 147 Wis. 327, 133 N. W. 209. Since then this court has many times affirmed its beñeficent purposes and declared the rule that it should be liberally construed to carry out such objects. This rule applies with equal force to the many amendments that have been added to the original act by subsequent legislation. The amend[15]*15ment under consideration is intended to carry out a wise public policy of spreading the risk or loss in certain cases so as not to bear too heavily upon the individual employer affected, and to prevent discrimination in the employment of certain classes. It recognizes that in the case of the death of an employee with a large family of small children, the compensation, in order to be adequate and equitable, must be much larger than in cases of dependency where only one person was dependent upon the deceased for support. It also recognizes that to assess larger compensation against the particular employer in such cases results in undue hardship on the employer, and very naturally might tend to induce employers to employ single men or men with small families, to the prejudice of those with larger families. This purpose of the legislature seems to be plainly indicated in the legislation here challenged.

But no matter how beneficial or wise the legislation,' it must be conceded that the legislature must have complied with constitutional requirements in passing the act. Sec. 2, art. VIII, Wisconsin constitution, provides: “No- money shall be paid out of the treasury except in pursuance of an appropriation by law.”

The act in question requires that certain funds be paid into the state treasury and paid out of the state treasury by direction of the Industrial Commission. It therefore comes clearly within sec. 2, art. VIII, and the money can be paid out of the state treasury only in pursuance of an appropriation by law.

Par. (g) of sub. (4m) of sec. 102.09 provides:

“The moneys paid into the state treasury pursuant to paragraph (f) of this subsection with all accrued interest is hereby appropriated to the industrial commission for the discharge of all liability for additional death benefits accruing under this subsection.”

The provision of the constitution is positive and prohibitory, but the language.of the statute uses apt and appropriate,terms to constitute an appropriation by law, and we enter[16]*16tain • no doubt that the legislature complied with sec. 2, art. VIII, in the amendment of the compensation statutes in question.

In the passage of the act, however, the Senate did not have a yea-and-nay vote on the bill, and it is the contention of the appellants that the act is therefore invalid as in violation of sec. 8, art. VIII, of the . constitution. Sec. 8, art. VIII, provides:

“On the passage in either house of the legislature of any law which imposes, continues or renews a tax, or creates a debt or charge, or makes, continues or renews an appropriation of public or trust money, or releases, discharges or commutes a claim or demand of the state, the question shall be taken by yeas and nays, which shall be duly entered on the journal; and three fifths of all the members elected to such house shall in all such cases be required to constitute a quorum therein.”

It is plain that the act “makes ... an appropriation of . . . money” in the public treasury, but the question to be determined is whether or not the money so appropriated is “public or trust money” within the meaning of the constitutional provision.

There is a significant difference in the language used in the two sections of the constitution. In sec. 2 the language is, “No money shall be paid out of the state treasury,” while in sec. 8 the words “makes ... an appropriation of public or trust money” are a qualified expression indicating that there might be other money in the treasury not subject to the limitation.

This latter section of our constitution is found in the draft of the state constitution of 1846, which was defeated by vote of the people. The next draft of the constitution, which was adopted in 1848, contained the same provision. The same provision in almost identical language is found in the New York constitution of 1846, and it is a fair presumption that this language was borrowed from the New York document, We do not find the same provision in "any [17]*17of the other constitutions of the states. In New York the court has held that this provision is directory and not mandatory. People v. Supervisors of Chenango, 8 N. Y. 317 (1853). We think the better rule, however, is that the section should be considered mandatory, and we so hold. State v. Wendler, 94 Wis. 369, 377, 68 N. W. 759; State ex rel. Postel v. Marcus, 160 Wis. 354, 366 et seq., 152 N. W. 419; 25 Ruling Case Law, 898, 900; Cooley, Const. Lim. (7th ed.) 193-195; 1 Lewis’ Sutherland, Stat. Constr. (2d ed.) secs. 46-48.

In People v.. Supervisors of Chenango, supra, however, the court held that a “commutation tax” on members of the militia in line of service was, not a tax within the meaning of the constitution, basing its judgment principally on the ground that it did not come within the abuses sought to be prevented by the section. The commutation tax was not a tax generally on the public for the benefit of the state at large, but was a levy on the individual members of the militia who did not respond to the services required. In other words, it was largely a private and local tax for private and local matters, although in general it served a public purpose. The court construed the constitutional provision to mean that the tax referred to therein was a general tax in its operation and co-extensive with the state. The New York court has also held that an act that provides for compensation for property destroyed by riot does not create a debt within the meaning of that section. Darlington Case, 31 N. Y. 164, affirming 2 Rob. 274.

In People ex rel. Einsfeld v. Murray, 149 N. Y. 367, 44 N. E. 146, the court passed upon an act of the legislature which provides for the collection by the state of liquor licenses in the various municipalities and then appropriates the proper proportionate funds back to the municipalities. The court held in that case that the constitutional requirement that “the assent of two thirds of the members elected to each branch of the legislature shall be requisite to every [18]*18bill appropriating public moneys or property for local or private purposes” did not apply. The court said:

“The' monkey levied and collected is not the money of the state. It is the money of the town, city, or village in which under the exercise of corporate powers it was levied and collected, and to it the state has no title.” Page 375.

Under that law, it is true, the funds were diverted before they reached the state treasury, but [hey were collected by a state agency for a special purpose, and the act did appropriate the moneys so- collected to a local or private purpose. The crux of the decision was that the money so collected never became public moneys. The court further said:

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Bluebook (online)
202 N.W. 324, 186 Wis. 10, 1925 Wisc. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-f-sturtevant-co-v-industrial-commission-wis-1925.