Turner v. Coffin

74 P. 962, 9 Idaho 338, 1903 Ida. LEXIS 41
Idaho Supreme Court·Decided December 26, 1903·Published·Cited by 23 cases

Opinion

Per CURIAM.

This is an application for a writ of mandate to H. N. Coffin, treasurer of the state of Idaho. It involves the constitutionality of an act of the legislature entitled, “An act to provide for the care and keeping of moneys in the custody of the treasurer of the state of Idaho, and prescribing penalties” approved the 4th of March, 1903, Session Laws of 1903, page 375. The board of deposits created by said act acting under and in pursuance of the authority vested in it, considered, the application of the Boise City National Bank for designation as a state depository, and from an investigation and examination of its financial condition and resources found that it was solvent, and thereupon ordered that said bank be designated as a state depository and allotted to it the sum of $1,000 upon its compliance with the conditions required.of depositories under [348]*348and by virtue of the provisions of said act. Thereafter said board ■ found that said bank had complied with the terms of said act and thereupon notified said bank of the board’s action in designating it as a state depository, and thereafter directed said state treasurer to forthwith transmit to said depository the sum of $1,000. The defendant, as state treasurer, refused to obey said order and refused to transmit said sum of money so allotted to said bank. Said board thereupon applied to this court for an alternative writ of mandate to-compel said treasurer io comply with the order of said board, or to show cause why he should not do so. The writ was issued as prayed for and defendant filed his answer to said application. Said answer raises only questions of law. The answer puts in issue the validity of said act of the legislature and specifies many reasons why said writ should not be made peremptory, among which specifications are the following: 1. Because under the provisions of the said constitution he is the legal custodian of all state funds, and if he should comply with the directions of said board he would be personally liable on his official bond in case of a loss of such public funds; 2. That the order does not indicate from which of said funds he shall transmit said money; 3. That said board is not a constitutional board or a board authorized to be created by the constitution and has no legal authority or right to disburse or direct the disbursement of the moneys belonging to the state; 4. That the order does not indicate fr,om which of said funds he shall transmit said money; 5. That the defendant is not a member of said board; 6. That he is the custodian of the public school fund, and that if he transmits said fund it will be contrary'to the law, as it would be a loaning of said money; 7. That the act takes the funds from his custody without his consent and contrary to the provisions of law; 8. That the act contravenes the constitution in this, that the subject matter of the act is not expressed in the title; 9. That no money can be drawn from the treasury except .in pursuance of an appropriation made by law; 10. That it intérferes with his custody of the public school funds.

The first question discussed in the brief of counsel is, Is the subject matter of the act in question expressed in the title? [349]*349Said title is as follows: “An act to provide for the care and keeping of moneys in the custody of the treasurer of the state of Idaho, and prescribing penalties.” In order to determine this question and what the real subject of this act is, and to ascertain whether or not said subject is expressed in the title, we will consider the act section by section. Said act is as follows:

“An Act to Provide for the Care and Keeping of Moneys in the Custody of the Treasurer of the State of Idaho, and Prescribing Penalties.

“Be it enacted by the Legislature of the State of Idaho:

“Section 1. The Governor, Attorney General and State Auditor are hereby constituted a Board of Deposits, of which the Governor shall be'chairman and the State Auditor, secretary. A record of the proceedings of said board shall be'kept by the secretary, in the books provided for the purpose, and a transcript of such record, or any portion thereof, shall be admissible in evidence in all courts of this State.

“Kegular meetings of said board shall be held at the State capitol building at such times as said board shall, by rule prescribe, and said board may hold, from time to time, such adjourned or special meetings as the business before it may require, such special meetings to be called by the Governor or any two members of said board by written notice filed with the Auditor and served upon the other member or members of said board, if within the state, at least twenty-four hours prior to said meeting: Provided, That when all members of said board are present at any meeting due notice thereof shall be deemed to have been given.

“Sec. 2. Any National or State banking corporation, resident and doing business within this state, complying with all the conditions and requirements of this act, may, upon being so designated by said board of deposits, become a state depository.

“Sec. 3. Every such banking corporation before it be permitted to receive on deposit any state moneys shall file with the State Treasurer a good and sufficient surety bond to the [350]*350State of Idaho, to be approved by said board, in some approved' guaranty'and surety company, authorized to do business in this' State, which bond shall be conditioned upon the payment to-the State of Idaho, upon the order or demand of the State-Treasurer thereof, free of exchange, at any time and place, ; designated by said Treasurer, of so much or all the state moneys ' on deposit with said banking corporation, together with accumulated interest' thereon at the rate fixed by said board, — or - in lieu of such bond, such banking corporation shall deposit with the Treasurer, under such rules and regulations as may be established by said Board of Deposits, not less than one dol- ■ lar and ten cents in value at the then market value of any of the following securities, to be approved by said board, for each, dollar of the State moneys to be thereafter deposited with said. banking corporation, to wit:

“Bonds of the State of Idaho and those for the payment of which it is ultimately liable; the bonds of the several counties, • cities, towns, villages, irrigation and school districts of this > state; the bonds of the United States; the warrants of the State of Idaho and of the several .counties thereof. No such' bonds or other collateral shall be approved by the board for more, than its par value, nor approved if its then market value ; is less than 95 per cent, of its par value, nor if there has been a default within five years in the payment of the principal or interest of any obligation issued by the same payer. The securities deposited under the provisions of this section may be' withdrawn from time to time when in excess of the requirements, but the total amount of such collateral securities shall. at no time be less than $1.10 for each dollar of State moneys so. held on deposit by the banking corporation given such security. ' . ’

“Sec. 4. The Board of Deposits shall not approve the bond' of any such banking corporation until fully satisfied that said ' bond is good and sufficient to indemnify the state against loss and : that .‘said corporation is solvent and has unimpaired, the paid-up capital claimed by it; and said board may at any time-require any such depository to furnish new or additional bond- [351]

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Turner v. Coffin, 74 P. 962, 9 Idaho 338, 1903 Ida. LEXIS 41 (Idaho 1903).

74 P. 962 (Turner v. Coffin) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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