State v. South Dakota Rural Credits Board
| Decision Date | 30 August 1922 |
| Docket Number | 5133. |
| Citation | 189 N.W. 704,45 S.D. 619 |
| Parties | STATE ex rel. FLANAGAN v. SOUTH DAKOTA RURAL CREDITS BOARD et al. |
| Court | South Dakota Supreme Court |
Original mandamus, on the relation of Walter J. Flanagan, against the South Dakota Rural Credits Board and others. Writ granted.
Walter J. Flanagan, pro se.
Byron S. Payne, Atty. Gen., and Vernon R. Sickel, Asst. Atty. Gen for defendants.
This is a proceeding in the name of the State of South Dakota, upon the relation of one Walter J. Flanagan,, against the South Dakota Rural Credits Board and the individual members thereof, and against Byron S. Payne, as Attorney General, seeking a writ of mandamus compelling the said officers "to forthwith prepare and file, in duplicate, full reports of its transactions and conduct of its affairs for each of the fiscal years ending on June 30, 1918, 1919, 1920, and 1921," and requiring "that said reports contain the following necessary information," to wit: (1) Bond issues, specifying 16 particulars; (2) bond interest specifying 10 particulars; (3) special warrants, specifying 19 particulars; (4) mortgage loans made, specifying 16 particulars; (5) depositaries of funds, specifying 10 particulars, subdivided into active and inactive deposits specifying some 23 particulars; (6) a detailed summary statement of assets and liabilities as of June 30, 1921.
By consent in open court, the proceedings were dismissed as to the Attorney General. In view of the fact that defendants have raised no issue as to the right of relator, Flanagan, to maintain this action, we are not called upon the consider, and do not pass upon, that question at this time.
After admitting the merely formal allegations of the complaint, defendants' answer alleges that during every fiscal year since the organization of the board it has issued bonds authorized by the law under which the board operates, and before each issue has furnished the Governor a financial statement showing the conditions of the business of the board, which statement, in each instance, showed the total applications for loans, the amount thereof, the number of loans and the amount, the number of applications approved, the number under investigation, the number of applications canceled, and bonds issued, showing date series, and amount; also a statement of the resources of the board, including the following items: Farm loans, interest paid on bonds, officers' and employees' salaries, legal expenditures, postage and office expenses, expenses on examination of land, furniture and fixtures, miscellaneous expenses, cash in hands of treasurer, state treasurer's balance of appropriation, and discount on bonds, which statement also contains a statement of the liabilities of the board, including the items: State appropriation, rural credits bonds sold, accrued interest on bonds, interest on average daily balances, interest received on mortgages, interest received on delinquent installments, premium received on bonds, and interest received on state warrants.
Defendants further allege that in every instance where bonds have been issued, the board has, immediately after such issue, submitted to the Governor of the state, a full statement of such issue; that each such statement shows a copy of the resolutions of the board authorizing and directing the issuance of such bonds, and shows the amount of bonds, the rate of interest, date of issue, when due, a form of the bonds, and a copy of the resolution of sale of the bonds and the contract entered into with the purchaser; that the said statements and reports were filed in the office of the Governor, and a copy thereof transmitted to the secretary of state and filed in his office as a permanent record, subject to examination by the public at any time. The defendants tender to the court as as a part of the return, copies of all financial statements and reports made at the time of the respective bond issues. Defendants further allege that no warrants have ever been issued by the board for the purpose of borrowing money at any time since its organization.
Defendants further allege that, in addition to the statements above referred to, the board did on June 30, 1920, file in the office of the Governor a full report of its business for the preceding fiscal years from the date of its organization, which report was made in accordance with the provisions of section 10153, R. C. 1919, chapter 304, § 2, Session Laws 1919, and in accordance with the requirements of section 7067, R. C. 1919, which annual reports were in accordance with the provisions of law referred to, requiring that they be made "in the most condensed form"; that said annual statements showed the total receipts and disbursements of the board for the fiscal years ending June 30, 1918, June 30, 1919, and June 30, 1920, and the total cash on hand, the amount received from sale of bonds and accrued interest, the amount of interest received on average daily balances, the vouchers returned and canceled, and the amount drawn from legislative appropriations; that the disbursements shown in such reports include the amount of farm loans, less payments, interest paid on bonds, salaries, legal expenses, postage, and supplies, expenses of examination of land, furniture and fixtures, miscellaneous expenses, and discount on bonds; that each of said statements included a statement of resources and liabilities of the board for each of said fiscal years; the items of resources shown were farm loans, interest paid on bonds, officers' and employees' salaries, legal expenses and office expenses, expense of examination of land, furniture and fixtures, miscellaneous expenses, cash on hand, balance of appropriation in hands of state treasurer, and discount on bonds; that the liabilities, in each instances, embrace the total appropriations, bonds, accrued interest on bonds, interest on average daily balances, and return vouchers canceled; that the statement filed in the office of the Governor on June 30, 1920, contains an itemized statement showing the loans made from July 1, 1917, the date of the organization of the board, to June 30, 1920, the counties in which such loans were made, the number of loans in each county, the amount of money loaned in each county, the number of acres in every county held as security for loans, and the average amount loaned per acre in each county; that on January 1, 1921, there was filed in the office of the Governor a supplemental statement and report showing the same things above referred to from June 30, 1920, to December 31, 1920, and all of said reports are in the office of the Governor, are public records, and may be examined by the public, and the defendants tender copies of said reports so on file; that all of said reports were made in condensed form because of the provisions of section 7067, Rev. Code 1919, which, according to the understanding of the board, prohibited any itemized or detailed report, and for the further reason that section 7068, Rev. Code 1919, prohibits the commissioner of public printing from accepting a report of any state official or board which is not made in the condensed form required by section 7067, and for no other reason; that the names of borrowers and the amount loaned to each were omitted from said reports, because such information is a matter of public record in each county in the state where mortgages are filed and recorded, and are subject to examination by any person interested; that an itemized statement of each receipt and expenditure in detail, showing the date of receipt of payment, the person to whom paid, the purpose for which paid, and the amount thereof, were omitted from the annual statements filed with the Governor because of the provisions of section 7067 and 7068, Rev. Code 1919, which prohibit the use of public funds for the printing of such items; that section 5347, Rev. Code 1919, requiring publication of itemized statements of receipts and expenditures through the office of the state auditor, do not apply to the rural credits board, for the reason that the state auditor is not required to keep accounts of the rural credits board, and no itemized vouchers are required to be filed in his office; that that executive accountant is made by law the auditing officer of the rural credits board, and the law does not require the filing or publication of itemized statements of the receipts and expenditures of the rural credits board, and does not authorize the use of public funds for that purpose.
Defendants further allege that they have made monthly statements to the executive accountant on forms provided by him, which have been audited by said accountant, who has also made an examination of the affairs of the board, including all its receipts and expenditures, regularly, at the time and in the manner provided by law, and that copies of the reports of such accountant have been filed with the governor and the rural credits board as required by law, which reports are public records.
Section 12, art. 11, of the Constitution, provides:
"An accurate statement of the receipts and expenditures of the public moneys shall be published annually, in such manner as the Legislature may provide."
Section 4, art. 12, of the Constitution, further provides:
"An itemized statement of all receipts and expenditures of the public moneys shall be published annually in such manner as the Legislature shall provide, and such statement shall be submitted to the Legislature at the beginning of each...
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