Loomis v. Keehn

80 N.E.2d 368, 400 Ill. 337, 1948 Ill. LEXIS 353
CourtIllinois Supreme Court
DecidedJune 21, 1948
DocketNo. 30381. Decree affirmed.
StatusPublished
Cited by32 cases

This text of 80 N.E.2d 368 (Loomis v. Keehn) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loomis v. Keehn, 80 N.E.2d 368, 400 Ill. 337, 1948 Ill. LEXIS 353 (Ill. 1948).

Opinion

Mr. Justice Gunn

delivered the opinion of the court:

Appellant, a citizen and taxpayer of this State, for himself and on behalf of others similarly situated, leave having been obtained, filed in the circuit court of Cook County a suit to enjoin the appellees, members of the Illinois State Armory Board and the Adjutant General of the State, from issuing bonds of the Armory Board or otherwise creating any indebtedness under the authority of the Illinois Armory Board Act, (Ill. Rev. Stat. 1945, chap. 129, pars. 223 to 22.8,) on the ground that such act is unconstitutional in its entirety. The Attorney General appeared for the appellees and filed an answer to the complaint, to which answer appellant filed a motion to strike as insufficient in law. The motion was denied and, appellant electing not to plead further but to stand on his complaint and motion, thereupon the complaint was dismissed for want of equity. A construction of the constitution and the validity of a statute being involved the appeal comes directly to this court.

The Illinois Armory Board Act was approved July 8, 1935, and creates the Illinois State Armory Board as a body politic and corporate, possessing all of the powers necessary to accomplish the purpose of the act, and enumerates the various powers as set out in. section 4, among which are: To enter into any contracts for any corporate purpose defined in the act; and “(b) to borrow money and issue bonds, and to pledge any and all property and income of such Board acquired or received as herein provided, to secure the payment of such bonds and to redeem such bonds.” The Armory Board is given power to sue and to be sued, to acquire, hold and convey real estate and personal property, by gift or purchase, for armory purposes; to donate such property to the State of Illinois if and when all of its debts, which have been secured by such property, have been paid; to purchase sites and buildings or purchase sites and construct buildings for armory purposes; to execute leases of buildings and sites to the State of Illinois for armory purposes, “and in the event of nonpayment of rents reserved in such .leases to execute leases thereof to others for any suitable purpose. Such leases to the State shall be subject to appropriations to be made by the General Assembly, for the payment of rent under such leases. The rent charged the State of Illinois shall not be in excess of the amount necessary for the retirement of bonds secured by the property leased to the State, and other expenses incident thereto, including cost of operations.”

Appellant claims the statute is void for various reasons, hereinafter set out, and also that the bonds about to be issued by the Illinois State Armory Board violate the constitution of Illinois in that they create a debt against the State of Illinois in excess of $250,000, without a referendum authorizing it. On the other hand, the appellees answer this proposition by saying that the bonds are not to be issued by the State but by a corporation authorized by law, and that the said bonds are payable solely out of the rent and income, or the pledge of the corporation’s property, and therefore do not create a debt against the State. Appellees also insist that if said corporation is regarded as an arm of the State, its bonds may be issued for repelling invasion, suppressing insurrection and defending the State in war, without a vote of the people, under the proviso of section 18 of article IV of the constitution.

The principal controversy between the parties involves the question of whether a debt against the State of Illinois is created by the act of the Illinois State Armory Board in issuing bonds, and, if created, whether it comes within the proviso of section 18, article IV, permitting such bonds to be issued without a vote of the people.

When all"of the provisions of the statute enumerated above are analyzed it discloses that the legislature has created a corporation mainly for the purpose of building armories; that such armories may be leased to the State, and in the event of the nonpayment of rent by the State, may be leased to others for suitable purposes; and that such corporation may pledge its property, or income, to secure loans made by it. It is not perceived how the corporation becomes an arm of the State solely because it may lease property to the State.

Before the passage of the act of 1935 there was no provision made by statute for any armory board to acquire land and build armories. There was likewise no provision in the Militia Act of 1874 (Ill. Rev. Stat. 1874, chap. 129,) for the building of armories. The Cities and Villages Act provided, by section 103 of article 23, and prior acts, that the city could acquire land and lease or donate it to the State for armory purposes, and section 1 of article" XVIII of the Military and Naval Code (Ill. Rev. Stat. 1947, chap. 129, par. 155,) also provides that armories may be be leased from the Armory Board.

It was early held that the State had an inherent power to organize its militia and provide for its training, (Dunne v. People, 94 Ill. 120,) which would include the use of an armory in which to train it. Until the adoption of the Illinois Armory Board Act the State apparently either voted funds to build an armory, or leased it from others, or received donations from cities and villages, all of which merely goes to show that another method of building armories and leasing them to the State was provided by the act under consideration, so that eventually, when completely paid for, they could be donated to the State.

Neither is it perceived how the State becomes liable for the debts of the Armory Board Corporation merely because it pays rent for the use of an armory. By the same measure it could become liable for the debts of the armory owned by a city or an individual merely because money was appropriated which was to pay rent upon a building not completely paid for.

The Illinois Armory Board act provides how a public corporation may acquire a site, build an armory, lease it to the State of Illinois for use of its militia, and pledge its building and income to pay a loan necessary for the acquisition of the site and the construction of the building. If the rent is not paid no claim is preserved against the State, but on the contrary authority is given to the State Armory Board to lease the property for another suitable purpose. The fact that the State of Illinois appropriates, during the regular session of the General Assembly, money to pay the rent does not create a debt, as current obligations are not so regarded. People ex rel. Toman v. Mercil & Sons Plating Co. 378 Ill. 142.

We consider the provisions of the State Armory Board Act, authorizing a pledge of the income or property of the Board, as creating a debt against the property of the Board, and to which, alone, the holders of its bonds may look, and this does not create a debt against the State, as the statute does not so designate and we have frequently held that under similar statutes the public body benefiting from such a corporation is in no way obligated to pay the bonds secured by income, such projects being self-liquidating, and the pledge of the property partakes of the nature of the purchase-money mortgage. People ex rel. City of Chicago v. Barrett, 373 Ill. 393; Hairgrove v. City of Jacksonville, 366 Ill. 163; Rockford Savings and Loan Ass’n v. City of Rockford, 352 Ill. 348; Ward v.

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

Related

Menorah Medical Center v. Health & Educational Facilities Authority
584 S.W.2d 73 (Supreme Court of Missouri, 1979)
2416 Corp. v. First National Bank
356 N.E.2d 20 (Illinois Supreme Court, 1976)
City of Pocatello v. Peterson
473 P.2d 644 (Idaho Supreme Court, 1970)
Rosemont Bldg. Sup. v. Hwy. Tr. Auth.
258 N.E.2d 569 (Illinois Supreme Court, 1970)
Rosemont Building Supply, Inc. v. Illinois Highway Trust Authority
258 N.E.2d 569 (Illinois Supreme Court, 1970)
City of Phoenix v. PHOENIX CIVIC AUD. & CON. CENT.
408 P.2d 818 (Arizona Supreme Court, 1965)
Lerch v. Maryland Port Authority
214 A.2d 761 (Court of Appeals of Maryland, 1965)
Baro v. Murphy
207 N.E.2d 593 (Illinois Supreme Court, 1965)
Petition of Board of Public Buildings
363 S.W.2d 598 (Supreme Court of Missouri, 1962)
Berger v. Howlett
182 N.E.2d 673 (Illinois Supreme Court, 1962)
Fairbank v. Stratton
152 N.E.2d 569 (Illinois Supreme Court, 1958)
Book v. State Office Building Commission
149 N.E.2d 273 (Indiana Supreme Court, 1958)
People Ex Rel. Adamowski v. Public Building Commission
142 N.E.2d 67 (Illinois Supreme Court, 1957)
People Ex Rel. Coutrakon v. Lohr
138 N.E.2d 471 (Illinois Supreme Court, 1956)
McArthur v. Smallwood
281 S.W.2d 428 (Supreme Court of Arkansas, 1955)
People Ex Rel. Gutknecht v. Chicago Regional Port District
123 N.E.2d 92 (Illinois Supreme Court, 1954)
People v. Illinois Toll Highway Commission
120 N.E.2d 35 (Illinois Supreme Court, 1954)
McCutcheon v. State Building Authority
97 A.2d 663 (Supreme Court of New Jersey, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
80 N.E.2d 368, 400 Ill. 337, 1948 Ill. LEXIS 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loomis-v-keehn-ill-1948.