State ex rel. Salomon v. Graham

23 La. Ann. 402
CourtSupreme Court of Louisiana
DecidedMay 15, 1871
DocketNo. 3358
StatusPublished
Cited by3 cases

This text of 23 La. Ann. 402 (State ex rel. Salomon v. Graham) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Salomon v. Graham, 23 La. Ann. 402 (La. 1871).

Opinion

Ludeling, C. J.

The relators pray for a writ of mandamus to compel the State Auditor to issue a warrant to them for fiity thousand three hundred and tliirty-ouo dollars and forty-six cents. They sue as tlie assignees of the right of James 0. Nixon, under an act of the General Assembly of the State of Louisiana, passed on the first of March, 1871, and numbered thirty two.

The Auditor alledged, as cause for refusing to issue the warrant, that the act No. 32 of the General Assembly of the State of Louisiana is unconstitutional.

And the State of Louisiana, represented by the Attorney General, intervened in the suit, and denied tlie right of J. 0. Nixon to a warrant, on the ground that the act No. 32. is unconstitutional, inasmuch as at the dat.e of its passage the debt of the State exceeded twenty-five millions of dollars, and the General Assembly was prohibited by the third amendment to the constitution of the State, promulgated in December, 1870, to increase the debt of the State'after it bad reached that sum.

To this intervention the relators excepted, on the following grounds, to-wit;

[403]*403Mrst — That this is not such a case as authorizes the intervention of tlie State to prevent the issuance of the warrant demanded under act. No. 32 of the Legislature of 1871.

Second — That the State is estopped by the terms of the act itself from appearing herein for the purposes set forth in the petition of intervention, and in law is estopped from disputing the validity of its acts duly passed according to law, and binding upon all officers of the government.

Third — That the intervention discloses no cause of action.

I. An intervention is a demand by which a third person requires to-be permitted to become a party to a suit between other persons, either by joining the plaintiff in claiming the same thing, or something connected with it, or by uniting with the defendant in resisting the claim of the plaintiff. C. P. 337. In order to be entitled to intervene, it is enough to have an interest in the success of either of the parties to the suit. C. P. 389.

Is the proceeding instituted by the relators against the Auditor a suit ? We think it is. Has the State an interest in the success of either of the parties to a suit ? Unquestionably she has. We can perceive no reason why the State should be denied the right to intervene to prevent her agent from being compelled to do an act which she avers is unauthorized by law. 22 An. 366, State, ex rel. Burbank, etc., v. Dubuclet, State Treasurer.

II. If the doctrine contended for by the relators be correct, the amendment of the constitution fixing the limit of the State debt would practically be without effect, whenever the Legislature inadvertently or designedly disregarded its provisions. The doctrine of estoppel is utterly inapplicable to a case like this.

III. The State is interested in enforcing the provisions of the constitution, and in resisting the claims of the relators.

The judge a quo correctly overruled the exception, and permitted the-intervention. It is unnecessary, therefore, to decide whether the Auditor had any discretion relative to issuing the warrant in question. '

On the merits, the question presented, is the constitutionality or unconstitutionality of the act of General Assembly passed March 1,1871, and numbered thirty-two.

The solution of this question depends upon two facts : Did the debt of the State of Louisiana exceed twenty-five millions of dollars at the date of the act of the Legislature aforesaid, and did the said act create a debt?

The evidence in the record leaves no doubt that the debt of the State exceeded twenty-five millions of dollars on or before the first of March, 1871.

[404]*404The total amount of bonds of the State, issued at that date, was........................................§22,560,233 00

The total amount of debts other than bonds on December 31, 1870, was.................................. 2,461,501 40

Total debt on December 31, 1870................§25,021,734 40

Between the thirty-first of December, 1870, and the first of March, 1871, the increase of warrants and certificates, was.................................... $ 552,174 14

But if we concede, what is not true, that the uncollected back taxes would absorb the warrants and certificates of indebtedness, still there is no room to doubt that the debt of the State largely exceeded the limitation of the constitution on the first day of March, 1871.

The remaining bonds of the State, in favor of the Mississippi and Mexican Gulf Ship Canal Company, to bo issued under act No. 116 of the General Assembly of 1869, amount to............................... $126,000 00

'The remaining bonds of the State, in favor of the North Louisiana and Texas Railroad Company, to bo issued under act No. 108, of the General Assembly of 1868, is not less than.................................. 594,000 00

The bonds of the State, in favor of the New Orleans, Mobile and Chattanooga Railroad Company, to bo issued under the seventh section of act No. 31 of the General Assembly of 1870, equal.............. 3,000,000 00

Total amount of bonds to be issued............. §3,720,000 00

Total amount of bonds issued.................. 22,560,000 00

Total amount of bonded debt..................$26,280,000 00

Besides this, the State has obligated itself to indorse the bonds of the New Orleans, Mobile and Chattanooga Railroad Company, and the New Orleans, Baton Rouge and Vicksburg Railroad Company to the •extent of $12,500 per mile of each of said railroads, as they are completed. It is contended that the bonds issued in favor of the property banks, amounting to $4,839,933 33, should not be computed as debts of the State, because they are amply secured by the assets of the banks, and because the accrued interests thereon have boon promptly paid by the banks. It is well known, especially in this country, that persons, natural and artificial, frequently fail in business; and from affluence they áre suddenly reduced to insolvency. The present ability of the property banks to meet tlioir liabilities is no guaranty that the State will not eventually have to pay her bonds, issued to aid said banks; and much less is it a reason to say that the said State bonds should not [405]*405be computed as a part of the debt of the State. If it bad been intended to exclude these bonds or others in the computation of the debt of the State, limited by the constitution, it would have been done in express terms.

In the case of the city of Baltimore v. Gill, 31 Md., the court held that a temporary loan to the city, made on a pledge of railroad stock owned by the city, was a debt, notwithstanding it was stipulated in the contract that the city was exempted from all personal liability, and that the lender should look alone to the pledge for payment. In that case the city of Baltimore had attempted to evade a constitutional provision, by which the debt of the city could not be increased, except on the joint assent of the Legislature and of the people by a vote.

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Bluebook (online)
23 La. Ann. 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-salomon-v-graham-la-1871.