State Ex Rel. American Legion 1941 Convention Corp. of Milwaukee v. Smith

293 N.W. 161, 235 Wis. 443, 1940 Wisc. LEXIS 206
CourtWisconsin Supreme Court
DecidedJune 4, 1940
StatusPublished
Cited by15 cases

This text of 293 N.W. 161 (State Ex Rel. American Legion 1941 Convention Corp. of Milwaukee v. Smith) 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
State Ex Rel. American Legion 1941 Convention Corp. of Milwaukee v. Smith, 293 N.W. 161, 235 Wis. 443, 1940 Wisc. LEXIS 206 (Wis. 1940).

Opinion

*447 Fritz, J.

The following matters appear under the allegations in the petition to which the defendant demurred. The relator, the American Legion 1941 Convention Corporation of Milwaukee, is a nonstock, nonprofit corporation organized under the laws of this state for the purposes of presenting to the national convention of the American Legion an invitation to hold its national convention of 1941 in Milwaukee; conducting and managing the local affairs and entertainment of this convention; and doing all acts, exercising all powers and assuming all obligations necessary to accomplish these objectives. The American Legion (hereinafter called the “Legion”) is a corporation created in 1919 by an act of congress, pursuant to which the Legion adopted a constitution and by-laws, under which its membership is composed of men who served in the armed forces of the United States in the War of 1917 and 1918. An essential element of its program is its annual1 national convention, which is its legislative body, and at which its members meet to exchange ideas and discuss methods and take action relating to the promotion of its purposes. An “Outline of Requirements” adopted by the Legion for its conventions requires that in the city in which a convention is to be held and which is then the host to the Legion, there shall be a local convention corporation, which shall have charge of all arrangements in the city; that the Legion’s headquarters and department headquarters will deal directly with the chairman of the convention corporation or a representative designated by him; that the expense incident to holding the convention shall be borne by the Convention Corporation, but each delegation attending the national convention shall finance itself; that upon the selection of the convention city by the national convention, a contract in a prescribed form must be entered into by the national organization and the Convention Corporation; and that each city *448 desiring to extend an invitation for the next convention shall tender a certified check for $27,050 to. the Legion to insure payment of estimated expenses as detailed in the contract.

In 1939 the legislature enacted ch. 451, Laws of 1939, with the following recitals:

“Whereas, War clouds are hovering over Europe and are of such wide extent as to suggest the possibility of engulfing the whole world; and . . .
“Whereas, During the past several years subversive influences have been rampant and have worked in the United States attempting to undermine the spirit of Americanism as it has existed since the adoption of the constitution of the United States of America; and
“Whereas, The American Legion has devoted itself to the maintenance of traditional principles of Americanism and has fostered the highest type of patriotic principles; and
“Whereas, The national conventions of the American Legion are annually necessary in order to maintain its effectiveness and to afford opportunity to its members to gather and exchange ideas mutually helpful to the preservation of American ideals; and
“Whereas, The national conventions of the American Legion invariably provide patriotic spectacles and inculcate and foster the highest principles of American patriotism. . . .”
By sec. 3 of ch. 451, Laws of 1939, there is appropriated the sum of $50,000 to relator “for the purpose of paying the usual and necessary expenses attendant upon the obtaining and holding of the national” convention in Milwaukee during' 1941.
By sec. 4 relator is “designated and selected as an instrumentality for the execution of certain duties and functions provided in section 3.”
Sec. 5 provides that none of the funds so appropriated shall be used by the relator “for any activities or functions which would be repugnant to the constitution of the state if carried on by the state,” and that “the state shall never be liable or responsible for any debts or obligations of the” relator.
*449 Sec. 6 provides that relator “shall use the funds appropriated to it . . . for the following purposes: (a) To assist in bringing the 1941 convention of the National American Legion to the state of Wisconsin; (b) to assist in the holding and the operating of the said convention if it is awarded to the state of Wisconsin.”
Sec. 7 provides that relator’s accounts and records shall be so kept as to distinguish clearly between the uses made of funds appropriated by the state and the uses made of funds derived from other sources, and that “all disbursements of funds appropriated by the state shall be audited by the secretary of state in the manner provided by law. If in connection with obtaining the convention the corporation is required to make a deposit with the national organization of the American Legion, the secretary of state shall draw his warrant for the amount required upon certification by the proper officers of the corporation of the amount required and of the fact that it is required.”
Sec. 8 requires relator to submit to the governor at the end of the fiscal year a report of its activities performed with the appropriated state funds.
Sec. 9 provides “If any provision, sentence, clause or word of this act or the application thereof to any person or circumstance shall be held invalid, the remainder of this act and the application of such provision . . . shall not be affected thereby.”

In December, 1939, the relator’s officers certified that the sum of $27,050 was required to make a deposit with the Legion’s national organization in order to obtain the 1941 convention for Milwaukee. This certificate, together with a voucher for the amount stated, was presented to the secretary of state, who was requested to issue his warrant for the páyment thereof to the state treasurer. The latter refused to honor the warrant on the ground that ch. 451, Laws of 1939, is not a valid constitutional enactment for the following reasons. The intended appropriation of $50,000 and the proposed uses stated in ch. 451, Laws of 1939, are not for such a state-wide public purpose as is *450 necessary in order to constitute a valid appropriation and use of state funds because (1) the relator is solely and strictly but a private autonomous corporation, even though it is a nonstock, nonprofit organization, and the designated purpose for the appropriation is to assist in bringing and holding a national convention of the American Legion, which is but another private autonomous corporation. (2) Under the terms of the act, part and possibly all of the appropriation may be used for the purpose of attempting to obtain the convention, which may not be awarded to Milwaukee even though funds are spent to accomplish that purpose; and in respect to the sum requested by relator in order to' make the required deposit of $27,050, there is no provision which requires the relator to return this fund to the state if the convention is not so awarded.

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Bluebook (online)
293 N.W. 161, 235 Wis. 443, 1940 Wisc. LEXIS 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-american-legion-1941-convention-corp-of-milwaukee-v-smith-wis-1940.