Veterans Wars v. Childers

Citation197 Okla. 331,171 P.2d 618,1946 OK 211
Decision Date29 June 1946
Docket NumberCase Number: 32331
PartiesVETERANS OF FOREIGN WARS v. CHILDERS, State Auditor, et al.
CourtSupreme Court of Oklahoma
Syllabus

¶0 1. STATES - TAXATION - No appropriation of funds in State Treasury can be made for other than public purpose.

Under section 14, art. 10, of the Constitution, no tax can be levied and collected, except for public purposes, and under section 19, art. 10, of the Constitution, no tax levied and collected for one purpose shall ever be devoted to another purpose. It follows, therefore, that no appropriation of funds in the State Treasury can be made for other than a public purpose.

2. SAME - "Public purpose" defined - Public funds may not be used to assist individuals or private organizations in their activities affected with public interest.

Under sections 14 and 19, art. 10, of the State Constitution, money in the State Treasury can only be appropriated and used for public purposes, and in order to constitute a public purpose, within the meaning of this constitutional provision, such purpose must not only be affected with a public interest, but must be performed by the state in the exercise of its governmental functions, and public funds cannot be used to assist individuals or private organizations in their business, functions, or activities, which are affected with a public interest, as the Constitution neither authorizes nor contemplates the exercise of governmental functions by any person, association, or corporation, except the duly constituted officers or agencies of the state.

3. SAME - Appropriation of state funds to private organization of war veterans though for wholesome purposes held unconstitutional as in nature of "gift."

Though a corporation is created for purposes fraternal, patriotic, historical, and educational and to assist worthy comrades who now are, or formerly were, members of the armed forces, and to assist their relatives and dependents, which purposes are wholesome and for the public good, yet when such organization functions by its own management entirely separate from control or direction by the state, it is as to the state a private corporation and the Legislature has no constitutional authority to appropriate public funds of the state, to such corporation, or to be expended by and through the corporation, in aid of the carrying out of its functions or some part of them, because such an appropriation would be in the nature of a gift of public funds within the meaning of section 15, art. 10, of the Constitution.

4. SAME - Act of 1945 making appropriation to Veterans of Foreign Wars held unconstitutional.

Senate Bill 245, S.L. 1945, page 436, is unconstitutional in that it is violative of sections 14, 15, and 19 of art. 10, Constitution of Oklahoma.

Original action in mandamus by Veterans of Foreign Wars of the United States of America, Department of Oklahoma, against C.C. Childers, State Auditor, and A.S.J. Shaw, State Treasurer. Writ denied.

L.J. Bicking, of Tulsa, for plaintiff.

Randell S. Cobb, Atty. Gen., Ewing C. Sadler, Asst. Atty. Gen., and Fred Hansen, First Asst. Atty. Gen., for defendants.

PER CURIAM.

¶1 This action tests the legality and validity of an appropriation made by the State Legislature to the Veterans of Foreign Wars, S.B. 245, S.L. 1945, page 436. The State Auditor, the State Treasurer, and the Attorney General took the position that the appropriation was not legal and valid, and thereupon approval of presented claims was denied. The claims were in proper form and mandamus should be granted if the appropriation is legal and valid, and must be denied if the illegality and invalidity of the appropriation is shown.

¶2 For the defendants it is contended that an appropriation in this form and substance, and that this appropriation, is prohibited by, and is violative of, several provisions of our Constitution; and that since this is the first time any effort has been made to make an appropriation to such a corporation rendering such services the appropriation act should be carefully measured by the various provisions of the Constitution.

¶3 Among other constitutional provisions relied upon it is expressly urged that this appropriation act is in violation of sections 14 and 15 of article 10.

¶4 The pertinent portion of section 14, supra, provides, "Taxes shall be levied and collected by general laws and for public purposes only. . . ."

¶5 The pertinent portion of section 15 provides:

"The credit of the State shall not be given . . . to any individual, company, corporation, or association, nor shall the State . . . make donation by gift. . . . to any company, association or corporation."

¶6 There is no issue or controversy as to any fact, and insofar as we refer to any fact situation, foundation therefor will be the pleadings of the parties and statements made in oral argument.

¶7 The named beneficiary of this appropriation, The Veterans of Foreign Wars, is a corporation created a number of years ago under the laws of the United States, 36 U.S.C.A. __ 111 to 120. Among other stated wholesome and worthwhile purposes is the purpose to assist worthy comrades of the armed services and their relatives and dependents. For some years the organization has functioned well in the nation and in Oklahoma, and among its activities has maintained service agents at various points in the state, and has maintained at Muskogee a service agent rendering service to claimants who had business there with and before the Federal Veterans Administration.

¶8 It was in connection with, and by way of assistance to, this last stated function or activity, that this appropriation was made.

¶9 The title of the act adopted by the Legislature reads as follows:

"An act making appropriations to the Veterans of Foreign Wars for the employment of a service officer to assist members of the armed forces, veterans, their families and dependents, and to pay other expenses necessary and incident to such service work and declaring an emergency."

¶10 And the first sentence of the body of the act, the sentence which completely makes the appropriation, reads as follows:

"In order to assist members of the armed forces, veterans, their families and dependents, to obtain the benefits of Federal and State legislation enacted in their behalf, there is hereby appropriated to the Veterans of Foreign Wars, Department of Oklahoma, out of the State General Revenue Fund the sum of Five Thousand Dollars ($5,000.00) for the fiscal year ending June 30, 1946, and the sum of Five Thousand Dollars ($5,000.00) for the fiscal year ending June 30th, 1947."

¶11 The Attorney General contends that it is shown by the act itself that the appropriation is not made "for a public purpose" within the meaning and intendment of section 14, art. 10, of the Constitution.

¶12 It is not contended that the purpose of the service rendered by the corporation is other than a wholesome purpose and quite valuable and beneficial to the people served, and therefore of course to the public as a whole. But it is contended that when a private corporation, association or organization is created, incorporated or chartered to render a service to the public or to work for the welfare generally or specifically, of the public as a whole, or of some particular class of the whole people, that the purpose so far as the government is concerned is a private one, and public monies of the state may not be appropriated to such an organization to aid it in carrying out the function for which it is chartered and has its existence. That is, that while any private organization or corporation of a purely charitable, fraternal, patriotic, historical or educational nature might operate for the good of the public or that portion of the public with which it came in contact, and in fact might be for a public purpose so far as the public is concerned, yet it would nevertheless be a private organization and a private purpose insofar as concerns the state and the public monies of the state. We observe that in part the purposes of this particular organization are stated as follows:

"The purpose of this corporation shall be fraternal, patriotic, historical and education; to preserve and strengthen comradeship among its members, to assist worthy comrades; to perpetuate the memory and history of our dead and to assist their widows and orphans," etc.

¶13 We know, of course, that there are many other corporations, organizations, and societies which are organized and operate for all or various of these same stated purposes. All of them, as this corporation, are free of any control or management of or by the state or any officer or agency of the state, and of course they are not in any sense agencies of the state.

¶14 In Vette v. Childers, State Auditor, 102 Okla. 140, 228 P. 145, an attempt was made by the Legislature to appropriate money to a private organization to assist it in performing a service which, while it was a service for the public good, was nevertheless to be performed, not by the state itself or any agency of the state, but was to be furnished and provided by the private organization or corporation. In that case, after reviewing the various arguments of the parties and considering well reasoned authorities from other jurisdictions, the court announced this rule in the fourth paragraph of the syllabus:

"Under sections 14 and 19, art. 10, of the State Constitution, money in the State Treasury can only be appropriated and used for public purposes, and in order to constitute a public purpose within the meaning of this constitutional provision, such purpose must not only be affected with a public interest, but must be performed by the state in the exercise of its governmental functions, and public funds cannot be used to assist individuals in a business which is affected with a public interest, as the Constitution neither authorizes nor contemplates the exercise of governmental functions by any person, association,
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