Shoemaker v. Smith

37 Ind. 122
CourtIndiana Supreme Court
DecidedNovember 15, 1871
StatusPublished
Cited by41 cases

This text of 37 Ind. 122 (Shoemaker v. Smith) 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
Shoemaker v. Smith, 37 Ind. 122 (Ind. 1871).

Opinion

Worden, C. J.

This was an action by the appellees against the appellants to restrain the latter from distributing to the several counties of the State the school funds in the hands of the auditor, amounting, as is alleged, to four hundred thousand dollars or more, in accordance with the provisions of an act of the legislature, approved February 24th, 1871 (Acts 1871, p. 6), amendatory of an act on the subject of those funds, approved1 March 11th, 1867. Acts 1867, p. 21.

Judgment for the plaintiffs below.

There was no question made in the court below, nor is there in this court, except those arising upon the controverted validity of the act of 1871, above cited. A number of objections to the act in question have been urged, which will be considered in such order as is convenient and seems to be appropriate. The questions thus arising are not entirely free from difficulty, and we have given them the attention and consideration which their importance and magnitude demand. We desire to say here that we have been greatly aided, in the consideration of the questions presented, by the able and exhaustive arguments, both oral and written, of the learned counsel for the respective parties.

In order to an understanding of the questions presented, it will be proper to set out the title of the act of 1867, and [124]*124the sixth section of that act, and also the act of 1871, with its title. They are, respectively, as follows:' .

“An act to provide for the custody and management of the notes, bonds and mortgages arising directly out of loans heretofore made by the board of sinking fund commissioners; to continue in force all laws or parts of laws in force on the 20th day of January, 1867, which are applicable to said loans and the securities therefor; to clothe the auditor of state1 with the powers, and subject him to the duties in relation to said loans .and securities therefor, which by said-laws are vested in, or imposed upon said board of sinking fund commissioners; to provide for the incidental expenses of the management of said loans and securities, including clerk hire, and for the mode and periods of the payment of such allowance for expenses; substituting the seal of the auditor of state for that of the board of sinking fund commissioners, and declaring an emergency for the immediate taking effect of this act, and providing for auditor of state to execute bond and payment of all moneys into the state treasury. Approved March nth, 1867.

“Section. 6. All moneys received by the auditor under this act, or under any of the acts hereby continued in force, or belonging to said sinking fund, shall, whenever the sum amounts to four thousand dollars or more, forthwith notify the secretary and treasurer of state of the amount of said fund in his hands, and the said auditor, secretary and treasurer, shall immediately proceed to invest the funds then in the hands of said auditor, or under his control, in the five or two and .one-half per cent, stocks of the State, by purchasing the same on the best and lowest terms that they can be had for in the market; and the said auditor shall keep an accurate list of the names of the persons from whom purchased, the time and place of purchase, and the price paid therefor; and he shall report to the governor at least once in three months, and to the general assembly at each session, a full account of all his transactions in relation to such purchases; any stocks or bonds thus purchased shall be imme[125]*125diately cancelled by writing across the face ‘purchased for the school fund,’ dated and signed by the auditor, secretary and treasurer of state; and a non-negotiable bond shall be issued in favor-of said school fund, as now provided by law.”

“An act to amend the sixth section' of an act to provide for the custody and management of the notes, bonds, and mortgages arising directly out of loans heretofore made by the board of sinking fund commissioners, to continue in force all laws, or parts of laws, in force on the 20th day of January" 1867,- which are applicable to said loans and the securities therefor; to clothe the auditor of state with powers, and subject him to the duties in relation to said loans and securities therefor, which by said laws are vested in or imposed upon said board of sinking fund commissioners; to provide for the incidental expenses of the management of said loans and securities, including clerk hire, and for the modes and payment of such allowance for expenses, substituting the seal of the auditor of state for that of the board of sinking fund commissioners, and.declaring an emergency for the immediate taking effect of this act, and providing for the auditor of state to execute’ bond and payment of all moneys into the state treasury, and adding supplementary section’s thereto. Approved February 24th, 1871.

' “Section i; Be it enacted by the general assembly of the State of Indiana, that section six of the'foregoing entitled act be amended so as to read as follows:

“All moneys received by the auditor under this act, or under any of the acts hereby continued in force, or belonging to said sinking fund, shall, whenever the same amounts to four thousand dollars or more, forthwith notify the secretary and treasurer of state, of the amount of said • fund in his hands; and the said auditor, secretary, and treasurer shall immediately proceed to distribute among the different counties of the State, in proportion to the number" of inhabitants in such county according to the late census; and in making such distribution among the several counties, the said board of sinking fund commissioners shall notify the [126]*126county auditor of such county or counties as may be entitled to such distributive shares or parts, from time to time, of the amounts so ready for distribution; and thereupon the said county auditor shall draw his warrant in favor of his respective county treasurer, on the board of commissioners of the sinking fund, for such sum or sums as he may have been notified is ready for distribution for such county; such treasurer shall present the same to the board of commissioners of the sinking fund, who shall pay the same to such county treasurer. ' >

“Sec. 2. As fast as the said sinking fund shall come in to the different counties of this State, as provided by this act, the same shall be loaned out. The county auditor and county treasurer of their respective counties shall proceed to loan out and invest, in said funds so held in trust for common school education, by loaning the same upon real estate security, in the same manner and subject to the same conditions as the other common school funds are now loaned by law: Provided, that the amount of interest arising from the loans made under this act shall be disbursed by the county auditor and treasurer without diminution.

“Sec. 3. All loans hereafter tüade by said auditor and treasurer shall be at the rate of eight (8) per cent, per annum.

“Sec. 4. Any officer who shall receive any bonus or interest for deposit of any part of this fund, shall, upon conviction thereof, be deemed guilty of a felony, and shall forfeit his office.

“Sec. 5. It is hereby declared that an emergency exists for the taking effect of this act; therefore, the same shall take effect and be in force from and after its passage.”

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Bluebook (online)
37 Ind. 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shoemaker-v-smith-ind-1871.