Indiana State Board of Finance v. State ex rel. Trustees of Purdue University

121 N.E. 649, 188 Ind. 36, 1919 Ind. LEXIS 19
CourtIndiana Supreme Court
DecidedJanuary 31, 1919
DocketNo. 22,994
StatusPublished
Cited by2 cases

This text of 121 N.E. 649 (Indiana State Board of Finance v. State ex rel. Trustees of Purdue University) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana State Board of Finance v. State ex rel. Trustees of Purdue University, 121 N.E. 649, 188 Ind. 36, 1919 Ind. LEXIS 19 (Ind. 1919).

Opinion

Harvey, J.

— The general assembly of 1913 (Acts 1913, ch. 182, p. 505) provided a mill tax for the use and benefit of its educational institutions, Indiana University, Purdue University and the State Normal. This act increased the mill tax from two and three-quarters to seven cents. The act apportioned this tax two-fifths to Indiana University, two-fifths to Purdue University and one-fifth to the State Normal School.

This act contains the following: “When the funds provided for by this act for said educational institutions shall become available, said funds shall constitute the total amounts to be paid out of the treasury of the state to said institutions for any purpose, thereafter, and all acts and parts of acts in conflict with this provision are hereby repealed.”

And the following proviso: “Provided, That nothing [39]*39in this act shall affect in any way any endowment or permanent fund .or funds that may belong to or may have been appropriated for either Indiana University or Purdue University or the right of any of said institutions mentioned in this act to any taxes heretofore levied for their benefit, but all such taxes heretofore levied are hereby saved to said institutions.” §4.

Because of the quoted provisions, the state’s then board of finance and the trustees of Purdue University disagreed as to whether an annual continuing appropriation of $30,000 for what is known as the “Agricultural Extension Bureau” of the university, and also an appropriation of $75,000 per annum for what is known as the “Agricultural Experiment Station” should be continued.

The state officers and said trustees also failed to agree as to whether certain other appropriations made at the 1913 session should be withheld from Purdue University because of said quoted provision.

The language above quoted which, it is claimed, prevents payment to the university of any fund other than the tax, and the language quoted which saves to the university certain funds, cannot be fully understood without reading in connection therewith the history of the financial provisions for maintenance of the university in its general and ordinary features; and for the maintenance of several special bureaus, stations and departments, which, though closely associated with the university, are not in a legal sense component parts thereof or administered thereby.

Failure to observe the’ distinction just suggested has resulted in confusion in some of the statutes to such an extent that the same cannot be reconciled when the exact language used is alone considered; whereas, when the character and purpose of the various special obj ects to be attained, and the means provided for administra[40]*40tion to secure such objects are considered, much of such confusion disappears, and a reasonable result is reached, though the same may seem to conflict with some of the language found in the statute.

1. Having given careful consideration to such history, as disclosed by all the statutes relating to said matters, the court finds that the university proper has been maintained to a large extent by appropriations or taxes for general and current expenses and for general maintenance, while another and distinct line of appropriations has been made, not for such maintenance, but, by express limitations, separated from such maintenance and confined to special purposes and departments. The court finds that while several of the latter class of appropriations were made to the university, or made payable to its treasurer, yet the expenditure thereof was not committed to the trustees thereof, as were all the general maintenance appropriations or taxes, but such expenditures were committed to special boards, committees, or other like bodies created by statute for the purpose.

Of the latter character is the $30,000 appropriation? herein contested. This is designed for the support alone of the Agricultural Extension Department. This department is the outgrowth of the creation by statute in 1889 (Acts 1889 p. 273, §3210 et seq. Burns 1914) of county institutes, for the instruction in the several counties of farmers and others in agriculture and kin-, dred subjects. Instructors for the respective counties were to be selected by the committee of experimental agriculture and horticulture of the board of trustees, together with the faculty of the school of agriculture of Purdue University.

An original appropriation of $5,000 was made for the purpose of paying "the salaries of instructors and other necessary expenses, the same to be expended under the [41]*41direction of said committee of said board of trustees, “and they shall annually report such expenditures and the purposes thereof to the Governor.” It will be noticed that the board of trustees of the university had nothing to do with this appropriation, only that part of the board constituting said committee. The committee and said faculty were not required to report to the board of the university. This appropriation was increased to $10,000 in 1901 (Acts 1901 p. 92).

In 1907 (Acts 1907 p. 183, §3213 Burns 1914), to increase the moneys to be expended for the extension of farmers’ institute work, it was provided by statute that, the chairmen of such institutes should, under regulations adopted by the superintendent of county institutes, be entitled to draw from the treasury the sum of not exceeding $100 once each year, and as justifying such expense such chairman shall file with the county auditor a list of members paying a membership fee of at least twenty-five cents and a statement of expenses, such expenses to include prizes for extraordinary excellence in agricultural and domestic sciences.

Payment of this appropriation for extension work was continued, notwithstanding the Mill Tax Act of 1895 (Acts 1895 p. 171, §6166a Burns 1901) prohibited any other payment to the university for maintenance than the tax created by the act of 1895. To meet an argument of appellants that this was a departmental construction favoring the idea that these special funds are not so prohibited, the state officers admit that .the appropriation to the extension department was “in no sense an appropriation to Purdue University,” and further say “said fund was not for the use of the university at all. It was only constituted the agent of the state in the expenditure of the fund in the encouragement of agriculture.”

The- above named acts of 1899, 1901 and 1907 were [42]*42repealed in 1911 (Acts 1911 p. 80). Though, this was an entirely new act, it provided for similar extension work in the various counties. It provided that local expenses not exceeding twenty-five cents for each square mile of territory in the county should be paid by the county, and directed the county councils to make appropriations therefor.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Territory v. Crowley
34 Haw. 774 (Hawaii Supreme Court, 1939)
State Ex Rel. Jones v. Erickson
244 P. 287 (Montana Supreme Court, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
121 N.E. 649, 188 Ind. 36, 1919 Ind. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-state-board-of-finance-v-state-ex-rel-trustees-of-purdue-ind-1919.