McKinney v. Watson

• Citation: 145 P. 266,74 Or. 220
• Parties: MCKINNEY v. WATSON ET AL.
• Decision Date: 05 January 1915
• Court: Supreme Court of Oregon

145 P. 266

74 Or. 220

MCKINNEY v. WATSON ET AL.

Supreme Court of Oregon

January 5, 1915

In Banc.

Appeal from Circuit Court, Marion County; Wm. Galloway, Judge.

Action by W. B. McKinney against R. A. Watson, as pretended Corporation Commissioner, and others. From a judgment for defendants, plaintiff appeals. Affirmed.

The plaintiff styles himself a resident, citizen, and taxpayer owning real and personal property in the state, subject to taxation, and brings this suit for himself and for all other taxpayers in the state. He seeks to enjoin the secretary of state from auditing, and the state treasurer from paying claims for salaries incurred by the defendant Watson, as corporation commissioner, under the act of February 28, 1913 commonly known as the "Blue Sky Law," entitled:

"An act to protect purchasers of stocks and bonds and prevent fraud in the sale thereof; to create a corporation department to administer this and other laws relating to the regulation and supervision of corporations, and providing penalties for the violation hereof." Laws 1913, p. 668.

The principal features of the act and the appointment of the defendant Watson as corporation commissioner are recited in the complaint. It is stated in general terms that the official mentioned has been operating under the sanction of the act and has incurred expenses which, together with his salary, will be audited and paid as other claims against the state, unless prevented by injunction. Many reasons are assigned by the plaintiff why the act in question is unconstitutional. He founds his right to bring this suit on the following allegation:

"That if claims certified by said pretended corporation commissioner are audited and approved, and warrants are permitted to be drawn upon any fund so attempted to be appropriated, and the same are paid by the said state treasurer, which said officer threatens to do, and will do unless restrained by this court, the same will greatly increase the taxes of this plaintiff, and all other citizens and taxpayers of the state of Oregon, wrongfully and unlawfully, and to their great damage and irreparable injury."

The circuit court sustained demurrers to the complaint, and, as the plaintiff declined to plead further, entered a decree dismissing the suit, from which the plaintiff appeals.

George Rossman, of Portland (Wilson, Neal & Rossman, of Portland, on the brief), for appellant. Martin L. Pipes, of Portland (A M. Crawford, of Salem, on the brief), for respondents.

BURNETT, J. (after stating the facts as above).

The act in question, like most of the laws providing for government by commission, devotes much space to salaries and expenses of administration and other matters well calculated to make the taxpayer look askance. It authorizes the establishment of a corporation department, and that all fees, charges, interest fines, and penalties provided by the act itself or heretofore paid into the public treasury by foreign and domestic corporations, joint-stock companies, and associations shall go into a fund to be known as the "corporation fund," which shall be liable for the expenses of carrying on the corporation department. It...