Steunenberg v. Storer

52 P. 14, 6 Idaho 44, 1898 Ida. LEXIS 20
CourtIdaho Supreme Court
DecidedFebruary 8, 1898
StatusPublished

This text of 52 P. 14 (Steunenberg v. Storer) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steunenberg v. Storer, 52 P. 14, 6 Idaho 44, 1898 Ida. LEXIS 20 (Idaho 1898).

Opinion

SULLIVAN, C. J.

— This is an original action, brought in this court by Frank Steunenberg, governor of Idaho, against George H. Storer, treasurer of the state, to compel him to place [46]*46in the general fund of the state the amount of money held by him in what is known as the “Capitol Building Fund.” It appears that the legislature of the territory of Idaho, in 1885, authorized the issuance of the bonds of the territory, to the amount of $80,000, for the purpose of erecting a capitol building in Boise City, and provided a fund to pay the principal and interest on said bonds, and also provided that the territorial portion of the money to be derived from licenses collected should be placed in a fund to be called the “Capitol Building Fund,” and to be used in the payment of said bonds and interest. (See Sess. Laws 1885, p. 62.) In 1891 an act was passed directing the state treasurer to invest the surplus moneys of said capitol building fund in state warrants. (See Sess. Laws 1891, p. 14.) It is alleged that said bonds and interest are fully paid, and that there are now over $17,000 in said capitol building fund, and that the said treasurer refuses either to pay said money into the general fund or to invest it in state warrants. The alternative writ of mandate was issued. The defendant appeared, and demurred to the petition, on the ground that it did not state a cause of action, and moved to quash the writ for the same reason. The demurrer was orally argued by J. H. Hawley and Frank A. Fenn, Esqs., on behalf of the plaintiff, and by S. L. McFarland, Esq., on behalf of the defendant. B. E. McFarland, attorney general, appeared, and stated to the court that as this was a suit between two state officers, and as he had advised the defendant as to his duty in the matter in controversy, he declined to appear for either plaintiff or defendant; but, during the hearing, the attorney general appeared amicus curiae, and made'an argument, in which he took the position that the defendant was not authorized either to turn the fund in dispute into the general fund or to invest the same in state warrants. The contention of the defendant is that no limitation is placed upon the life or existence of the capitol building fund created by section 38, page 14, Special and Local Laws of Idaho (see, also, Laws 13th Sess., p. 62); and that, as the indebtedness which said fund was created to liquidate has all been paid, he is not authorized to invest the surplus of said fund in warrants, and for that reason his duty is to hold said [47]*47fund intact until the legislature shall make proper disposition of it. In the determination of the question involved, certain sections of the statute must be considered.

Section 232 of the Revised Statutes declares of what moneys the general fund of the state shall consist, and is as follows:

“Sec. 232. The general fund consists of moneys received into the treasury and not specially appropriated to any other fund.”

Section 1640 of the Revised Statutes requires one-tenth of all receipts from licenses to be paid into the state treasury; and the act creating the capitol building fund provides that the treasurer shall set apart all moneys received by him on account of licenses of every kind and description, collected under the revenue laws of the territory, and that the same (with rents derived from the capitol building) shall constitute the capitol building fund.

Section 38, page 14 of the Special and Local Laws of Idaho, is as follows:

“Sec. 38 (see. 7). For the purpose of creating a fund to pay the interest coupons and the principal of said bonds, the territorial treasurer is hereby empowered and directed, from and after the passage of this act, to set apart all moneys that shall be received by him on account of licenses of every kind and description collected under the revenue laws of the territory, and all rents that may be derived from said building, and the same shall constitute a separate and distinct fund to be known as the ‘capitol building fund.’ And the territorial treasurer shall pay the interest on said bonds, when due, out of said fund, taking the coupons as his vouchers therefor. And after the expiration of ten years from the issuance of any of said bonds, whenever there shall be $5,000 or more in said fund provided for in this section over and above the amount required for the payment of interest coupons due, or to become due within the next ensuing six months, the treasurer shall use such surplus money in the redemption of said bonds according to the number and date of their issue, of which the treasurer shall give notice by publication once a week in some newspaper published in the county of Ada, and from the date of the last publication of such notice, the bonds proposed to be redeemed shall cease to draw [48]*48interest; and if any such bonds shall not be presented within sixty days from the date of the last publication of such notice the treasurer shall apply the money for the redemption of bonds next in order of the number and date of their issue.” - (See, also, same section, Laws 13th Sess., p. 62.)

At the first session of the legislature of this state it appears that a considerable surplus had accumulated in said capitol building fund, and it being desirous to invest said surplus in state warrants, and thereby save to the state interest accumulating on such warrants, the following act was passed.

“An act to authorize and require the state treasurer to invest the surplus moneys of the capitol building fund in state warrants.

“Be it enacted by the legislature of the state of Idaho:

“Section 1. Whereas, prior to the time when the capitol building bonds, issued under section 37 of the Special and Local Laws, shall become subject to redemption as provided by said section, the amount of money in the capitol building fund provided for by section 38 of the Special and Local Laws, shall exceed the amount required for the payment of the interest coupons of said bonds due or to become due within the next ensuing twelve (12) months, the state treasurer shall use such surplus in payment of any warrant drawn upon him by the state auditor and presented for payment and not paid- for want of money in the fund upon which they are drawn properly applicable thereto, and shall register and indorse such warrants as provided by section 238 of the Revised Statutes and place the same so indorsed to the credit of the capitol building fund, and such warrants shall bear interest and be payable in due course as other outstanding warrants; and when paid the principal and interest thereof shall belong to the capitol building fund and phall be in like manner reinvested until said bonds become redeemable as aforesaid.
“Sec. 2. There now being a large surplus idle and unproductive in said capitol building fund and an insufficient amount in the general fund of the treasury to pay warrants as presented, an emergency exists, and this act shall go into effect from and after its passage.
[49]*49“Approved January 17, 1891.” (See Sess. Laws 1891, p. 14.)

The language of said last-mentioned act seems to imply that the investment of the surplus of said fund in state warrants was only to be made until said bonds and interest were redeemed and paid. It is admitted by the pleadings that said bonds, with interest thereon, were fully paid in 1896, and that there is no indebtedness remaining unpaid which said fund was created to pay.

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

Cite This Page — Counsel Stack

Bluebook (online)
52 P. 14, 6 Idaho 44, 1898 Ida. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steunenberg-v-storer-idaho-1898.