Austin Nat. Bank v. Sheppard, 1764-6607.

• Decision Date: 02 May 1934
• Docket Number: No. 1764-6607.,1764-6607.
• Citation: 71 S.W.2d 242
• Parties: AUSTIN NAT. BANK OF AUSTIN v. SHEPPARD, Comptroller of Public Accounts, et al.
• Court: Texas Supreme Court

71 S.W.2d 242

AUSTIN NAT. BANK OF AUSTIN v. SHEPPARD, Comptroller of Public Accounts, et al.

No. 1764-6607.

Commission of Appeals of Texas, Section A.

May 2, 1934.

Original mandamus proceeding by the Austin National Bank of Austin, against George H. Sheppard, Comptroller of Public Accounts, and another.

Mandamus granted.

White, Taylor & Gardner and Black & Graves, all of Austin, and Thompson, Knight, Baker & Harris, of Dallas, for relator.

James V. Allred, Atty. Gen., and Sidney Benbow, Asst. Atty. Gen., for respondents.

CRITZ, Commissioner.

This is an original mandamus proceeding instituted by Austin National Bank as relator against George H. Sheppard, state comptroller, and Charley Lockhart, state treasurer, as respondents. The facts are undisputed. They are as follows:

At all times, including and since March 7, 1919, Barber Asphalt Company has been a foreign corporation, duly incorporated under the laws of West Virginia, with a permit to do business in this state. On said date the company filed with the secretary of state of this state its application for a permit to do business in Texas. This application was accompanied with a certified copy of its charter, and all amendments thereto up to this time, as required by law. On the above date the capital stock of such company was $7,000,000, and it paid to the secretary of state a filing fee or tax of $2,500. This was the maximum fee or tax required by law to be paid by foreign corporations. On payment of the above fee or tax, the secretary of state, on the date above mentioned, issued to the asphalt company a permit to do business in this state.

About March 31, 1922, the asphalt company amended its charter, and increased its capital stock from seven million to ten million dollars, and duly filed such amendment in the office of the secretary of state of West Virginia; whereupon that officer approved such amendment and issued his certificate showing his action.

In due time, after the filing and approval of the above amendment in West Virginia, the asphalt company tendered to the secretary of state of this state a certified copy of its amended charter, with a request that same be filed in his office as required by our law. When the amended charter was tendered to him, the secretary of state demanded an additional filing fee of $2,500, and refused to receive or file such amendment unless and until such fee was paid. The asphalt company protested the payment of such fee, and contended that it was not due to be paid under our law, and that the secretary of state was acting under a mistake of law in making the demand. The protest of the asphalt company was unavailing, and it then paid the fee.

After the happening of the above events, it was determined by our Supreme Court that: "Having received a permit to do business in the State, good for ten years, on its compliance with the statutes (Rev. Stats. 1925, ch. 19, Title 32) and having paid therefor and on the filing of subsequent amendments increasing its capital stock, fees amounting to $2500, based on amount of such original capital stock and increase, the corporation was entitled to have filed by the Secretary of State further amendments increasing such stock, without payment of further charges based on such increase. This duty of the Secretary being merely ministerial it is here enforced by mandamus."

The above holding is quoted from the syllabus in the case of General Motors Acceptance Corporation v. McCallum, 118 Tex. 46, 10 S.W.(2d) 687.

From the above it is evident that the asphalt company was entitled to have its amendment filed without the payment of the second fee of $2,500, and the secretary of state acted under a mistake of law in refusing to file such amendment until the additional fee was paid. It is evident, therefore, that the transaction resulted in the state receiving money into its treasury that it did not own and was not entitled to receive.

It appears that the asphalt company presented its claim for the refunding to it of the above $2,500 to the claims committee of the Forty-Third Legislature. The committee approved the claim and included same in the Miscellaneous Claims Bill of that Legislature. This bill was duly passed by the Legislature and approved by the Governor, and is now in effect if it is a valid act. H. B. No. 919, page 816, c. 237, Acts Reg. Sess., 43d Leg. 1933. The above claims bill contains numerous items, some of them refunding taxes of like character as this, and some making appropriations to pay claims of different characters.

After the above act became effective, the comptroller issued his warrant to cover the above appropriation drawn on the general revenue fund and payable to the asphalt company in the sum of $2,500. The asphalt company duly assigned the warrant to relator, and it is now the legal and equitable owner and holder of the same. The bank presented the warrant to the treasurer for payment, which was refused by that officer on the ground that the comptroller had instructed him not to pay same, and on the further ground that the Attorney General had advised that such warrant was invalid. This mandamus proceeding followed.

The respondents have duly answered, and contend that the appropriation on which this warrant was issued is unconstitutional, illegal, and void, for reasons which we will now discuss and decide.

Respondents contend that this warrant and the appropriation upon which it is based are unconstitutional and void because, under the undisputed facts, the Legislature has singled out the asphalt company and a number of other corporations asserting claims of a like class, and allowed their claims, while at the same time it refused to make appropriations to pay claims of the same class presented by numerous other corporations. The respondents contend that such facts render this appropriation class legislation in contravention of section 3 of article 1 of our state Constitution. We take the facts alleged to be true.

In our opinion, the above contention should be overruled. Of course, if it should be held that the Legislature has power to make an appropriation to pay this claim, it must follow that it has power to pay every other claim of the same class; but the mere fact that the Legislature may make an appropriation to pay one or more claims of a class, while at the same time it fails to appropriate money to pay other like claims, does not render the appropriation made class legislation within the meaning of section 3 of article 1 of our state Constitution.

Respondents contend that this appropriation is in violation of section 56 of article 3 of our state Constitution. That constitutional provision deals with local or special laws. Obviously this appropriation is not a local law. The terms "special" and "local" are used in the same sense in this constitutional provision. Lastro v. State, 3 Tex. App. 363.

Respondents contend that this appropriation is in violation of section 44 of article 3 of our state Constitution. This presents a very important question. The constitutional provision involved reads as follows: "Sec. 44. The Legislature shall provide by law for the compensation of all officers, servants, agents and public contractors, not provided for in this Constitution, but shall not grant extra compensation to any officer, agent, servant, or public contractors, after such public service shall have been performed or contract entered into, for the performance of the same; nor grant, by appropriation or otherwise, any amount of money out of the Treasury of the State, to any individual, on a claim, real or pretended, when the same shall not have been provided for by pre-existing law; nor employ any one in the name of the State, unless authorized by pre-existing law."

So far as applicable to this case, the...