People ex rel. Tallant v. Fogg

11 Cal. 351
CourtCalifornia Supreme Court
DecidedJuly 1, 1858
StatusPublished
Cited by1 cases

This text of 11 Cal. 351 (People ex rel. Tallant v. Fogg) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Tallant v. Fogg, 11 Cal. 351 (Cal. 1858).

Opinion

I. It is objected by the defendant that, as County Treasurer, he is not authorized to apply such funds to the payment of the coupons, or to the interest upon the bonds, until the Board of Supervisors shall have first made arrangements for such payment; and then, only upon the warrant of the County Auditor, or the order of the Board of Supervisors.

This objection involves the construction of the Funding Act of 1855, (Laws of 1855, page 9) under which these bonds and coupons were issued.

The bonds issued under that Act were founded upon warrants previously drawn by the Auditor of the county upon the Treasurer, which were then an existing and outstanding indebtedness against the county; and which the Treasurer was bound to pay on demand, without further action by any officer or Board of the county. He was the only officer who could pay them, or upon whom any demand could be made by the holders of' them for payment.

The Act for funding this indebtedness was a proposition on the [353]*353part of the county to the holders of these warrants to substitute bonds in their place, with certain conditions and covenants. When the holder of the warrants accepted the proposition, it then became a contract between the parties, binding upon both. Among the conditions, the time of payment of the principal was to be extended to the year 1870, and the interest to be paid on the first days of January and July in each and every year. There are no terms of the Act, or stipulation in the contract, for the exchange of these securities, by which the holders of the warrants were to relinquish any of their former rights. The warrants with interest were to be paid out of the general fund, on demand by the Treasurer. The interest upon the bonds is to be paid at fixed periods out of a particular fund, expressly created and to be applied by the Act and the terms of the contract for that purpose. The holder of the warrants received payment directly from the Treasurer, and looked only to him for such payment. That right has never been relinquished by him in the exchange under the Act; and he has, therefore, the right to require the payment of his interest upon his bonds from the same direct source and from the same officer, especially when that officer is made and is, in fact, the only legal custodian of that fund, as of all other funds belonging to the county.

It is true, the Act of 1855 does not in express terms direct who shall pay the interest upon the bonds. The Treasurer is to receive and pay out all the moneys of the county. (Wood’s Dig., p. 713, art. 3,421.) The 9th section of the Act of 1855 requires that the tax constituting the interest fund shall, when collected, be immediately paid to the Treasurer, to be by him applied to the payment of the interest on the bonds. This officer was required by law to pay the warrants on their presentment, which were his authority for such payment. That officer then being the legal receiver, and the only officer authorized to pay out any of the moneys of the county, was bound to pay the interest on the bonds, on the holder presenting to him the coupons, which are also his authority for such payment.

That the Treasurer must pay this interest upon the presentment of the coupons to him, is further made clear from the 4th section of the Act. That section declares that the Treasurer shall cancel the cou[354]*354pons on their being paid. Now, if he do not pay them, how is he to know they are paid, or to have their possession, so as to cancel them ? If the County Judge or any other officer were to pay them, that officer would have the possession of them; and then, in that event, the Act would have directed the officer paying and having their possession to cancel them.

But it is contended on the part of the defendant, that by the 10th section of the Act of 1855, the appellants should have first applied to the Supervisors; and that payment of the coupons could only be made upon their warrant.

This position we deny, and insist that it is against every fair construction of the Act.

If it requires a warrant from the Supervisors, on whom shall it be drawn, or to whom shall it be payable ? Certainly not on the Treasurer to give him power to pay, for that power is conferred on him by his general duties and powers as Treasurer. He does not require it to authorize him to pay the coupons, if he be the proper officer to pay; because the coupons themselves are his authority to pay under the Act of 1855, they being a substitute and in the place of the warrants which were payable on presentment, without any further warrant or direction from any source.

On a careful examination of the Act of 1855, it will be found that the Treasurer is the only person to pay these coupons, and that he must pay them to the holder on presentment and demand of payment from the interest fund in his hands, without any further directions or authority from any other officer or Board of the county.

The first part of section 10 of the Act directs that the Supervisors shall make arrangements for the payment of the interest; and the exercise of the power so conferred upon them depends upon certain conditions; and those conditions, which set in operation these powers, can only exist when the tax authorized and directed by the ninth section of the Act is first raised, and is insufficient. By that section, the tax raised and constituting this interest fund is to be paid to the Treasurer, and by him applied to the payment of the coupons ; and in the event that fund is insufficient, then the Supervisors are to make the arrangements directed in the tenth section; then the conditions exist [355]*355to set in operation the powers of the Supervisors undcyjhat Act._. Therefore, then, under the tenth section: • ~ .:z'

1. The Supervisors are, sixty days before the interest becomes due, to see if there be sufficient of the interest fund in the hands of the Treasurer to pay such interest. If there be, then they have nothing further to do; if not, then they are to make arrangements to have sufficient in that fund for that purpose, and that section points out the way for those officers to proceed.
2. It will be perceived that there are different funds belonging to the bounty, which are distinct and separate, one from the other, and created for different objects; and so to be kept and disbursed by the Treasurer, although that Treasurer may be one and the same person ; and therefore, that officer is required to keep the interest fund wholly separate and distinct from the general fund, in the same manner as if such fund were kept by a different officer or person.

If, therefore, the Supervisors on examination find that the interest fund in the hands of the Treasurer is insufficient to meet the interest on the bonds, they are then required to draw their warrant on the Treasurer of the general fund for such sum as will supply the deficiency of the interest fund ; and it is the duty of the Treasurer of the general fund to pay such warrant; that is, as the Treasurer of the general fund, he must, upon the authority of that warrant, transfer the amount of such warrant from the general fund to the interest fund for the payment of such interest. But yet, as the Treasurer of the county, and general custodian of all the moneys of the county, he still holds the same money, it only being transferred from one to the other fund, as required by law.

3.

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Bluebook (online)
11 Cal. 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-tallant-v-fogg-cal-1858.