### 523

OFFICE OF THE A?TORNEY GENERAL OF TEXAS **AUSTIN**

ioa Ca!d88lOE to

oh tranafor In aocordthe tcrrm of 

### raid

fitsate Un4mploynmnt

Inauranos Lawa. wevision i8adr ror th4mu48r43r 

### out of-the stat4 uiwnp10y&amt Trust Fund to the FailroadulaeIll~loyment maaranoe AOo@kmt Bi a IUUU **0r** molmy that it eotiBIta6 to be th4 #lrmun%a oolle~ated ia

### 524

~0x1.Orville B. Carpenter, Page Z

UllMt~~O]wbIlt

tale8 fl’tS+ I’O11ro8d8 lFI8S tb (ImIlt -id Out ln benefits to rellroad **worker8** eo of it-8 SO, 1939. The detemimtion 

### ofthis **-t** 18 61660 a r88pOn8ibility of thci Soelal 

### Seowlty Bardl rter agroacmnt 

### with the 

### Railroad Ratirmaat Eaerd 

### and **eoosultation** with 

### the State. The 

### panaltp provided for 

### tha 6tetO8 tbet do not 80 eaeml thrlr hW8 18 **OOllteiilOd** in 8UbreOtiM (d) Of 68OtiOtl 1J and 18 a rithholdlm **Of qatlts**  **for ndaiaistI'atiV6**  **OXPW8 #**  the State uuemployment oanponsatlm law.
-AO~Ordia~y, **the** ‘f ’8X88 **If21Om~~O~ent COGl~8IlMtiOIl**  Aot
um 

### smealsdet 

### therecent **s88slon d**  

### the **Tons I.O~i8httJre**  by IIOU80

all 759, and thi8 mndment i6 now SeOt%Oa O(A) of the ‘fwrr **AOt.**

WIh5Or the tafu OS thi8 8RWdBI8nt it b.OW8 neOe8ea~
**r0r** 

### the **Taxes** Uaemployaent 

### Oompeasetlon C0ml8Oioa wlthin thirty &eye 8ftOr the 01088 Of **the** r&g\llar888s$On 00 the 

### S.8glaleturs

to euthorirce



### end dirmt the aroretery ef the **TTOaSUry t0**  **tXVUt8rer rrCiE**  **th0 TOzS8**  **uaaePigOOat OmppOa8a**  **tiog** FUtld t0 the RailSOad h8rPglO)-a8Ilt fn8UWlOO **AOoouat** a0 am-t **of money**  **known a8**  the ~preliaalnary amauIt.w For pur ln?oxmetlon, It 1~ estlmted tbet thle ammat will e~pmxlmate $4,000,000.00.



### -90rar 

### as wa know,theValidityOr eon8titutlanallt~ 0r **the Ballrad**  Uneuhploym6nt **Inauranee bet**  **has** nwer **beoa -888d**  upOn by the **OOUTt8** or the **%hitOd** Stati 

### thevelldltyor 

### oonetltutiandityofRoPseBili lilrarlae, 789 emending **ths** Texas UnemplOymstkt **Ot6apOalsetiOn Atit**  **he8 not**  **bO8Jt p88ed**  **Upon** by **t&e -4lOt+8**  **Or thi8**  State, l**rrd** thi8 ati88ioIl i8 **m8lUOtent** to authorize and ab00t th8 tXWQ8rer of 8~oh a large 8wk 0r r4onoyla.ths l **breno~e 0r**  anoh detsminatlona.

***will yen,**  **th@MrCEC,** Inform **88 as**  **to** whether la **your** OpiriiOa

the **COWmi88iOn i8**  obllg8d at thi8 timeIt0 &UthOr%s8 and ulrsot 

### thistranefer, end, 

### ir 60,what lleb%lLitp meq 

### be iaourred by ous 00 dolag la the swat either,of these Aeta may later be held to be **UEOiXl8titUtiOMt. ”** 

**A JWOBr**  dotermination **Or** the QUeletiOZi El'O88ntOd **~r9Q3i3 ’** **08 1.** 

### oon6ldoretion **0S two**  Pulenl 8tatutee **ead two**  **State 8tatutW,**  **tf%, Qa**  **U.S.C.A.,** TltLe S, sootlow 

### JOl-$03,endTltlee 7, 8 and 9, BOO

### tiOIl8 901.12L0, **OOlS8titUtiU&** 8 PWt Of the FOdO~f:80Ofa~ $OOlzritt AOtt **48** U.S.&A., **S86tloas $81488,**  **h@rd#ait+ &84**  al the Wifr readUnemploymmt IarrPpno8 Aott brtielue bS&lb-1 to~tlSZkD-eS, hraen'8 Annotated Olrll !t3tstUtO8 Or Texas, hereQidter refer*sd

### 525

Bon, Orville 5. Carpenter, ?a60 3

tO aa the Tarea Vnamploymant 

### Compsnslation hot) and Eouao Bill 769, bets, rirguler

**Sa8elon,** 46th Laglalatura, aaandetory of the Taxes ~namploymant Companaetlon **AOt,** and bafn2 Artfolea 668lb-la, 952lb-7a, and SS2lb-@a of raid Aot.

Tour **repucet 8aeks**  our opinion 

### upan the relldity an6 eon- <utlonalit7 of tba EailroadUnanployment Insurenoe Aot and !Wuw ~lll 769, **AOt8, Regulsr**  **Se8aion,** 

### 46th **Legi8hture. ‘** **phia Dapartmant**  dll not prr8ume to pass judeeat upon 

### the oonrtitutioadit~ of an aot of COflgr884,

but will properly limit ita oplnf~n to the validltr
er eon8tltutlOnalltyor tb hot of the 

### termsl.&8latum clt8d. Con**8.+Ontl~, iOr**  **PUrpOSeO Of**  thi4 **Opb~iOn,** thaprovlslona IS the federel soolal Seourlty Aot and the RailroadUnsacgloyxantIneurenoe Lot, mrtinent to the lnatent inpul~, wlll ba **eaaumd** to **be** in all thiag8 0Onatitutional. In ptwefng,howaver, it might ba etate4 that the FaU**era1 Eooial**  **Geeurity Aot**  **wasi, by**  **a** divided **Euprum** Cow%, held to be oon8tltutionalin tha oeea of Chaa. E:tOWti ~eohine CO. Va. LXlVi.8, so1 0. S. %a, 57 **:ap. ct.**  **883.**

**m0 t0**  **the itmWSdStfOn8**  **ab the**  **AOt8 Or**  **cQX43rO88** and or the Tous Lagl8letura, harslnabove oited, raignraine tha ooopwatlva aootal **seourfty** 

### program**between** the Paderal **end State**  gDverIIpwnt.8,
**a brfer**  **retlew** 

### et the **cutset,** with rererenoa **to the**  **pertlrmat pro**  rl~~lonr

of euah mot8 would **not** be amlea. The prorl8lonc whioh we 6eem pertiaeatare those invol~I.ng th* oreetlorr

an4 malntenano8 ef theUn~plOyaent OOwanaatiOn Iund and Unemployment Coa~aaatlon Adminl6tratlonPun0 in tha **State Tmaswy,**  the Fnsatplo*ent Truat 

### FundIn ttmFeder61 Trcaauzy,end the RailroadUne.mploymantlnewaaoe Aeoomt In aaid latter funk

Oa Au&sat 14, loaS, the redem Soolal **8eeurlw** Aot **baoema** 0rfe0tiY0, 4834uuraunat thereto as **rerleetad** In tha emergency elauso, BenateBill.

Ro. 6, kOt8, 9rd Called Se88lon, 44th Leglslatare, **beemw** l rfeotlve Ootober 27, loiN, 

### to protldo for the Texas Onaarploymant Ccmlpen8atioll

4JE tail. 

### Tha FaderalAot laposer an annual exolae tar npcm employ8rr of ei&!t or more with raspart tq haying ladivlduala %n their employ, and an in0cnne tax upon their **emp1oye88, bot3**  bared **upon** 

### a **certain B;reduatsd**  **percentage cf**  **the payrol;t,**  

### whloh **tar** 

### Is pi& into tha Traaaury ot tha United Wxtes aa other internal **raveaue** OOllOOtiO~8. kc an faduoeaent to tb **rerioue** etater of the Union to eaaot 8lrPller

unar@aymant oompensatlonmae6urea and for t% jroteotlon of auoh atataa trcia unfarorabla bu8in888 **oondition8,** ocnaper’ad to eteteswhlah **did** not have such Ieglslation, tha Federal Act protldsa that 

### an employer rang0radlt against this rederal tax, but not to exceed ninety ger 

### atnt tbarc?al, the amount **of ooatribatlons**  **made** by hl?a under a state unamplo~nt 

### oempeaeatl6aI.&r, whloh baa been orrtiiladby tha Faderal BooSal Saieurlty Woard~aa having oartaia 

### Preaorlbed

provld oaa. 

### OaaOf thaae 

### Is that al.1 

### monagareoalved

### 526

Bon. Onflle 5. Carpenter, Page 4

Into the State's unemplo~~at fund shell lmedlatrly be paid over to the Seoretery of the Treaeury to the oredlt of the Vnemployaeat Truet y'ulld.

For the plrpoea or providing wbewfits* to tke unsaployed of Texas oomfngwithin the mlew of the Texas Unemployment Ccapennation hot, **6Cid** hot 

### require8oartsin employera of 

### Texasto take annual payment8 or Woontrlbutlonsameasured by a graduated **peroentage** of the payroll, and theoe *oontrlbutIona*ara paid into the Onemployaent CompensationFend In the State Treasury,whlah ir entablirhed and oontrolled by 

### ArtloleS??Elb-7, 8~ mended, in the following manner:

"(a) '~Sstabliahment and Controlr 

### There is hsrcby establishedas a cpeoial fund, 

### seprate and apart fram a11 pub110moneys or funds of this Gtate, an Gnemployment CompensationFund, whloh ahall be adninlatered by tha ComIBalon exolurlvely for the 

### porpoassor this Bat. This fund shell oonaist of (I) all contributionaaolleoted under this Aat, together n&t& any lnterert tbereoon oolleoted 

### jnarstrant

to Eeotlon 14 

### of thisAott (2) all fine8 and penaltfea collected **purtwant to**  the m0116ion6 of this Aot; (8) Interest earned upon any moneys in the fund; (4) any 

### propertyor aeourltleaaoqulred through the use or mona~8 

### belongingto the fttnd; 

### and (5) ell 

### earningaOr 

### maohpro**perty or**  **seourltlsa.** All 

### moneys in the rad shall be mingled and 

### undivided.
"(b) kooountsand Depositi The StateTrealrursr shall **be treasurer**  **and 8uotodiatn**  **of tha**  

### fund**rho** shall admInister mob fund in aaoordanoe with the **direotione** of the 

### Cemmlselonand the Comptroller #hall 

### lseuewarrant0 upon it In aooardanoewith suoh regulationsas the Corn-- mission shall preaorlbe. The Treasurer shellmaintain within the fund three (3) **eoprate** kooountm (1) l alearI **aobount,** (2) an unemployment trmt fun4 aooomt, 

### and (ST a benefit ao~oaant.All mm&eye 

### payableto the fund, upon 

### raoaiptthereof by the Comlclrton, ah%11be forwarded to the Treascror who ahall imnadiatelydeposit them in t?ie olearlng aooount. 

### Rerundspayable**purrrusnt to**  

### faction14 of this Aot may 

### be paid from **tha** olaarlng

### ~aacount upon warrant.8issued by the Comptroller under the dlreotlon of the W~Mdfi6ion. 

### firter olearanee thereof, all othermoneys 

### in the alearing aooount &all be 

### ,hmedlatelydeposited with the Seorebery of the 

### Treasutyof the United States of kaarloc to the oredit oi the aoooant'of this State in the 7Jnemployment

Trtit F'und,eatabliehed end -istained **pureuant to**  **Seotlon 904**  or **tb8** Sooial Seour'ity Aot, a8

### .S27

EOL Orville S. Carpenter, Emgo S

amended, any prorielone of lnw 

### In thle State relating to the deposit,administration,release, or dleburesrssnt uf money8 in tha 

### poaeeeelon or ouetody of thle State to the oontrerynotrlthstandlag. The bensilt aoootuat ehall ooneiet
or all money6 requleltloned

### rr’o this State*8 amcount in t&o Unemployment **Trust Fund.**  Koneye 

### in tha oleerieg

### and benefit aaoouutemay be depoalted by the Treaeurer, 

### underthe direo

### tlonot the 

### Commleeion,in 

### any bank or publio depoeItory in whloh (Ieneral,lunde of the State

### may be 

### deposited,but no mblla deposit lnmranos oherge or .premiua shallbe 

### paid out or the ruau.

. . .*

The Unemployment TN& Fund established In the heaeury of the United States by Seoblon 904 of the 5oaial SeaurlQ 

### Aot, and 

### referredto In the foragoing statute, is oonatltutodae iollowet



### “(a) There Is hereby established in 

### the Treasu?y
or the United State8 a truet fund to ba known a8 the *unemploymnt txuet fund', hereinafter in this ohapter oellad the *rund*. Tha,eeoretery cifthe Treasury la euthorlzed and dfreoted to 

### reoelteand hold in the fund all moneys depoelted therefn by a State agenay irem a State unemploymentrund, or by the Rsllroad BetIremnt Board to the credit of the railroad uuemptoyaent insuretiee

### aooount. Suoh depoeltmay.be **sade** blreutly wlth the 6eoretary of the Treasury cw with any Federal Reesrre bank or 

### memberbank of the Yederal Reeene Syetaa designatedby him **ror** euoh 

### purpose.

“(b) It shallbe the duty of the Seoretary 8t the Treasury to invest suoh portion of the Fund 

### as I.8 nat
, in his judgment,required to nnat eurrentwithdraw8le+’ .suahInrestEentmy be laadeonly in intereatbearing ebligation8 of the United State8 or~1sobligation8 guaranteed
as to bath prlnoipaland lntareet by the Unlted~States,. For euoh purpose euoh obligation8amy be aoqulrad (1)
on or$gInal Issue et 

### pr, or (2) by 

### purphew of out+andlng obligation6et the market paioe. %'h#,purposae f.Dr whloh obllgatione ol’theVnltad Water. may bo Is&ae&tuBd~ 

### !?ectlon

752 of Title 231,

### are hereby -tended to authorlee the lasuanoa et 

### parof ep@atsl obligations erolueivdly to the Fund. Suuahapeoiel obllgatloae ehall bear iaterast et a rate equal to the average rate of Intareet, **omputed**
aa of the end of the calendermonth natt 'preoedlng the date
or suoh leaue, borne **bp** all interest-bearing obll~atlone of the V&ted States then IoraDing part of the mblio debt;

### 528

exce2t t&t uhre such averaes rate 1s not 8 multiple of one-eighth of 1 per oentux, the rate of Interestat suoh sjmclal obli&etlons#hall be themultlpls of oneeighth 02 1 par centum next loiterthan such average retb. Obli~etioneother than suoh speolal obligationsmay **be** aoq,lired

for the nJnd only 08 suoh terma as to.provide

an lnvestnentyield not less than the yield whloh w0u1& **be** required in the 08&e of epdolal obllgstlons if ieeuea to the fund upon the date of uuah soqulaitlon.

"(0) .4hyobligationsaoqulred by the **Fund** (exorpt spealal obligations i0su0a **exalusfvsly to**  **the** Fund) **may** be sold at the narkst price, and suoh epsoial obllgatlons may ba redaemsd at ,par plus eoorusd interest.

"(d) The lntsreet on, end the prooeedsfro;a the sale
or redersptlon

of, any obligationaheld in the Fuud ahall be oreditad to and Bonn a part ci the **Fund.**

n(e) The fund shallbe fnveatea as (Islhgle find, but the Ssoretary of the Treasury shallrimlntaia e separate book socount for saoh State agenoy and the railroad unem**plop4nt** 

### lnsuranaeaooount **ana** shall credit quarterly on Marah nat, June SO, Septaaber SO, aud Moember 31, or each par, to eaoh aaaount, on 

### thebmlr or tlm avomgs dally balanoe of suoh aocount, a ProportIonatepart of tha earnings or the **tuna for**  the **quarter** ending on aroh data.

"(f) The Searotary of 

### TreasuryIs authorize4

### e&l dlreoted to pep out or the **Fund** to **any** Stat& agenay auoh twmunt a8 Itmap duly requirltlon, not exceeding the azaouutetanblng to the acoount o? suah State agency at the time of such g3ayzi8nt. The Seoretaxy of the Txeaeury irr authorlrea **and** dlrsoted to **make** auoh payments out of th* fund as the Eallroad Retlrsrant Board may duly oertify, not exoeeding the anmmt standlng to the rallroadunemploymnt inauranoe ecoount at the t&ma of such paymmt.W

seotlon 809 of the Soolal maurlty Aot (4.2 U.S.C.A. 1103) nalcess it a condition or approval by thrs Social Seourlty Board Or a' StateUneEploymnt Compenea’tlon Law tbt "allmoney vithdrswn fraar theUnemployment Trust Fund by tha Stat8 Agency shall **bo use&**  **aOh** lf In the payment 0r compensation exolusive 0r expawes or adminlstratlon.’ In regard to expenres blaent to the edmlnletration cb the Toxa~Unemploymnt Gompenaatlon **Aot,** Sea. ll of saidAot oraatee % Spoolal Fuud in the **State.Treaa&Uy tar**  that **purpose es**  **fo~0wS1**gon. Orville E. Car;anter, .Fsge 7



### “ia) L_peciel

Fund: Thare is hereby created In the State Treaeury % special tund to be known %s the iJnamployment CompensationXdalnlstratlonFund. All moneys daposited or peld into t!As Fund 

### are **hereby** appropriated end 

### inuds

evalleble totha Comlrslon. All monaya 

### in this Fund eh%ll be expanded aolaly for tha yurpoaa of defraying the cost o? the admini%tr%tionof this Aot, and **for no**  other purpose whatoowsr. Tha yuud ah%11 **eon** siat or all moneys approprletaa **by** this ztata, **end** all **money8** received from tha United mater o? Amarloa, **or** any agency therao?, includingthe ;.ocial Seoeity Barrd and the United States SnployaeatSarvloa, all aonayr oolleotadby the Comisslon aa coat% or ieae ohargad by the ComaIsalon for rurnfshlngphotostatlo or aertl?lad aopies of recorde of the Cuani%sion, or fee% ohergedby the ComIsaIon for msklng **audlfa** pursuant to the authority granted in thls hot, or from any other souroa, fop: euoh **purpoma,** end shall be adminlataradrap%r%ta **and** apart frav all publicmoneys or funds o? the Stats. **All** money8 In this **Funa** shall be a6p08itea, admInIsterad, and dlsbursab, In the sa~9% **manner and**  under **the aam**  oonaltionr ana raquirextanta a% Is providea by law for other apaclal funds in tha Gtata l’raasury. **Any** bslanoae in this Fund %h%ll not lapse at any time, but shallba continuouslyavall%bla to the Cmunlsslon for aXp%naltute aonslrtsntwith this Aot.

. .*

Tha foregolagunamployment CompanaatlonAdmi5lstratIon Fund la red **by** grantr thereto by tba FederalOwarnmaat under RaatIona SO1 and 80% of th%E,oaIal **Geourity Aot**  **(4s U.S.C.A.**  **3aa** tlana f301

k 600) whloh **read as**  **followa:**

**Yea. 501.**  **For tha**  **purpose ti**  **aesfstln5** the State6 In the admInlstretlon of their unemployment aa%pans%tfon l%wa, there is hereby authorfxed to **be appropriated,**  **far** the fi6td year ending June 30, 1936, tha 6um **Of** $4,000, OOo.oQ, and ror each ?laoal **peer** thareaftar the sti’o? $49,000,000, to bs **used**a% harel.n%?ter **provided.**

Tao. 502. (a) The Board shall ?rom tins to time csrtlfy to the Secretary of the Treasury for Bsymaat tc each State which h%e an unesqloymnt oanp%nsstioa law %Dprovedby tbs mara **under** 8aotion 1103 0r this chapter, such %maxat% au tha Board determines to be necessary ror the **proper** administration o? such law during the rlfiO%l year In rhioh suoh payment is to be ~%%&a. The Board*8 determination shall ba besad on (1) tha population Of!-ion.

Crrille %. Carpentar, i'fige 6

the :;tata;(Z) w @atlmatc r;itl;a number of persons owsmd by the Steto law zindor the cant of proper ednlclstratlon 0r eiuah law; and (3) such other raotore
aa the Board rinds relevant. T&o Board shall not certify for payaont Undor **this eeotion**  **in** any flseal year a total amOUnt In 5xoeas Of tke ai?ioUnt 8ppropriated therafOr for euoh flsosl year. *(b) Gut ot 

### the 8~118 appropriated therefor, the **Seoretary zrf**  **the Treasury**  ehell, upon reoelrlog a 

### aertlfioatfoc under eubseai.l.on (a],puy, through tha Division of Dlobureoment of the Treaeury Department and prior to audit or eettla-nt by the General kccouctlng Wflos, to the State aganoy ohargedwith the admlciatrationof euoh law the amouxitw aisrtlrled.*

IQ the rors6oing portion of this ~plnlon we have outlined **tte** 88tablishment **and** purpose oi the rarloue state and feberal funds of the eoolal seourity syetame eponeoredby rho Fuderal and Ytata Cwwnaente, as euok~ funds exietsd before the advent of the RailroadUnemployment Insurance 

### ho8 onJune 2S, 1938, whlah so radtoally altered the statue ortheue tunde and gave rice to the lnetant Znt;uiry.Theretofore, the Fsberal Cwernment had eltoted to leave with the remrved power of the variwe l

tate8 all enploymect *letlone, both interstate end intrastate,balm **aontaat** with grante-b-aid **to** euoh etatee by way 

### of epproprlatlone out of **the** general revenue8 or l uffloient eums,not in lxmee of the dew **rho0 by**  **C~s~greee. ror**  **admlnie** tratl*o sxpefieee

or the rarloue State Unemployment Compwmetlon **liots.** This aotlon on the part.ot Congreee was upheld in the
oass 0r Chae. c. **Etoward** idaohlne Company ~6. Dalfe, eupra, on 

### tha **ground** that the operntlone or the **State** Unemployaent rampennstion Lawe would rsllere tie Federal Qovernmect of a portion oi the potential reller burden. **and** euoh rearonable proteatlon or the Federal Treaeury wae part of general welfare In a 

### oonatltutlonal eened. Seth the paesaga of the riailraad Uneaglaymeat Ineuranoe

### aot, the Cocgrsee, for the rlret 

### time,eleotedto preempt the ii814 of un5niployment ooapeneation in 80 tar as explorer-employeerslatlonehlp8 0r lntsretate oomaon **aarrferr**
were oo~oerned,and it la settled by the euthnritlee **that** in such a oa(re

the le$.lelatlon

ot a etate, in rronfliet with the ersrolm by eo~&~~a:e of its oonetitutionalpower over lnteretate ooameroe, 18 euporeaded and dleplaeed. 9 Tax. **Jur. p.**  **8X3%-890,** amI oansn olteb. The Railroad **Uaemp~oyseot Ineuranoe**  **AQt Of**  193% providers a oomprehenrlte and oomplete eyetsa ot unemployment **sompen8atlon** folr

employ668 or oep~on carrier8 engem in interstate ooamerw and would w6oe6arllp walllot witA the grotielone


### or theTVXU Ucomployment CompensationME upon t&a eeme eubjeet. ??hilethis, 

### of lteelf,

### vou.Id pause ths State 

### etatuteupod thie
acore to yield, the **Coagrssa** hae removed all **doubt of**  **itrr inteQtion8** Bon. Crvllle j. Carpenter, Page 9

to preempt.tbla field by Gectlon 13 (a) of **the** GallroadWiemployslent

Insuranoe Aat, (45U..:.C.A. 363),provldlngas follows:

"(a) By **enaomnt** of this ohaptorthe Congress naakes erclualve provlaion ror the payment of unemploymentbenefits

ror unemployment occurringafter Jw.e 30, 1939, based upon employment (as deflnsd in ttis ohapter). MO employee shall have or **assert** any right to unemploymentbanei'lts under an unemployment oompensatloolaw of any Statewith respect to unsmployaent ooourrIn6 after June 30, 1939, based upon employment **(as** derlned In t&is ohaptar).The Congress find8 end declares that by virtue of the enaotment of thls chapter, ths appllcetlon 0r Stat.0 unemploynwt compensation law8 arter June 30, 1938, to suob employment, exoept pursuant to wotlon **362 (g)**  **of this**  **Ohapter,** would **oonstituta an**  **undue** burden upon, and an undue lnterfersnoewith the erreotlvs regulation of, lnteratateuoramar0a. In rurtheranoe of sUoh detenainatlon, after June 30, 1939, the term *person* as **used** in seotlon 1106 of the Title 42 shall not bs oonstrued to lnolud~e

any employer (as defined In thls ohapter) or any person In its employ: Provided, **That** no provision of this ahapter shall bs oonstrued to atreot the payment'oi unemployment beneflts with respsot to any period prior to 

### July 1, 1939, under an unemployaent oaapeoaatlon lax or any State **based** upon employment performedprior to July 1, 1939, an6 prior to such **&ate** eaployment **as** defined in thls ohaptsr shall not oonstltuts *Servicedth rsspeot to which unemplo)psnt oomgansatlon Is payable under an (or *8ervioeunder any') uns@oym< oomponsation sy~$em (or *plan*)establlshsd by @:&ot or Congrss$* (or *a law of theUnited statas*)
**or** *e&ploymentIn ip*yerstate oommsroe, or an Individual who is ooverod by an Unemployment oomponaatlen syatenl established dlreotlp by 

### an **kot** 

### of Con&veas,*or any term

or sinilar Import, use6 in any unemplomnt oompenration law or any state."
The Railroad Unemplo)asnt Ineuranae kot prorides a seheduls of *oontrlbutlons"and *benefltowas other uneaployaent oompensation laus and Is aomplets In all of Its adninletratlve details, whIoh ws deem not necessary to &~SOU~S. Seotion ll of the Aot (48U.S.C.A. 300. 561) sstabliahes In thr cfrsasury of the CnIteQ States a fund to be known as the Railroad Unemployment Insuranos Admlnistratlon Fund. and providea for its approprlatlon and avaIlabIlIty for adarinlstratlta espmums, but a8 no part ot the rour nllllon dollars involved In your Inquirynil1 tlnd it8 way into this Fund, ws are not 6onoernsdwlth It further than to **make** note of thts taot. The Railroad Unemployaent faauram0 Fund, **or rather**  **Aeoount** althln a Eund, oreatedBoll. CX’ViilS c. **Carpenter, Fage**  10

by the i?ailroad

Una8ployA8At InsuranoeAot is the ;urticularacoowt withwhloh ue are oonoerned,beoauee It is into this account **tbat** the four mIllIon dollar8 will 60 if a transfer thereof is erreotea by YOU. Ibnoe we quote Section 10 (a-b)of the Railroad iineciploymnt lneuranooAOt (4sG.S.C.A. 300. 260 (a)k (b),

### l stabll8hlng the RailroadUnemployment InsuranoeAoeount.

"(a) The **Secretary** of the Treasury 8hall mlntaln In the unenployment trust fund established pursuant to seotion 1104 of Title 42 an aooount to be known as the railroad unemployment lnauranoe aooount. This aooount shall oonslst of (1) 90 per aentum of 811 oontrlbutlons colleoted pursuant to seotlon 360 of this ohapter, together with all Interest thereon collected pursuant to seotlon 360 of this chapter; (II)all amounts transferred or paid Into the acoount pursuant to section 363 or section 264 of this adapter; (ill)all additional amounts **appro** priated to the acoount In acoordanoewith any provision

or this chapter or vlth any provisionof law now or hereafter adopted; (iv)a proportionatepart of the earing8 of the unemployrzeat

trust tid, **computed** In aocordanoe with **the** provislon8 0r seotlon 1104 (0) 0r Title 42; (v)all amount8 realized In **reooverles** for overpaysent or erroneous payrrants of benefits; (vi)all **amounts** transrerrea **thereto pursuant**  **to** section 361 of this chapter; (vii)all fine8 or penalties oolleoted pursuant to the provlelone or this ohapter;and (rlll)all **amounts** arsdlted thereto pur**suant** to eootlon 562 (g)or creation 362 (8) of this ohapter. Eotvrlthstandlng

any other provlalonOS law, all moneys 0m6itea to the aooount shall be 0ingi0a and undivided, 

### and

are hereby 

### pmsanentlp appropriated to the Board to **be** aontlnuously available to the hoard ulthout further approprlatlon, for the 

### paymentof benefits and rerunUS under this ohapter, and no plrt thereof shall lapse at any time, or be oarrled to the surplus fund or any other fund.
*'Lb) All moneys In the aooonnt shall be uSed solely for tha payzaent

or the benefits and **remade proylded**  **ror by**  this ohapter. 

### The Board shall, rm0 tlSe to tix&e, oertlfy to the Zecretary or the Treasury the narim and address or eaah person or aorepany entitled to reoalva benerita


### or a refund payment under this ohapter, the amount of suoh psy&ent, and the time at whloh It shall be made. Prior to audit or settlement by the General aosountlng **Oftloe, the**  ssoretary or the Treasury, through the nlvi6lon or I)lsbursea6nte or the Treasury Department, shallmake payments from the **aooouat** directly to such

### personor 

### aompnnyof the amount
or benefits or refund 80 oertIfied **by** the, Board: Provided,Eon. Orvlllo s. carpenter, PaGO 11

however, That ii'the Zooard shall so repeat, the Smretary of the Treasury, through the Division of Ciaburstints of the Treaeury Dapartmmt, ahall transeit bansilt payments to the Board for dlstrlbutlonby It through employment orfloes or In such othermanaer as the Board deema proper.'

Xot for the purposeof ooorolng the Texas mmaplopeat Coapensatlon ColPaiesIon acd siailar rtats 

### l genoles of other states Into tranaterrlng to the Iiallroad Unemployment InsuranoeAcoount, above desorlbed, such sun@ as have by them been oolleoted as -eontrIbutIomP from eluployers sagagod In Intarstats oosmeree,but &arely aa a ior& of nzlld &oral-suaolon to thle end, the Cougraas, by Sec. 13 (a)of:the FallroadUnmploymtnt Inauranoe **Aot** (45 U. S. **C.A.** Sao. 563 (0)withdraws further grantr-In-aid to the various states by way of akinlrrtrative erpaases In the 8am **mount as**  euoh ***oontributlone~** oolleotedbut not tranoforred. %?a quote:
"(0) The soolal Soourlty Ewrd shall rlthhold from oertIfIoatIon to the setretfiry of the Treasury Sor pyment the amounts determinedby it pursuant to aeotloa 502 (a) of Title 42 to be moemary for the propr **ad** mlalstratlon or each Ctats*s unQoplo~nt-conpenaatiop law, until an amount equal to ita *preliminaryamount* plus interest from July 1, 1939, at 2,1/e per oentum per annum on suoh portion tkiereor as has aot been 68od as the maa6ure f4r wIthholding oertlfioatlon for payment,has boaa 60 withheld from oertlfloatloo **purattant to**  **this paragrkyh**  **:** Prorlded, however, That it a state shall, prior to whichever is the later of (I) thirty days after the al080 of the first regular 6@sslon of its leglalattue whiah begins after the approval of 

### this &aptar, and (11)July 1, 1939, authorlzo and direct the Sacrotary or the Treasury to transfer from Its aooount in the unenployment trust fund to the railroad unemployment-oompensatloa aooount in the unemployment trurt fund an amount equal to Its *prsllmInaryaiouat*, no amount shall be withheld from osrtltloatlon forpayrtent to such state pursuant to thlr paragragh.

*The Soolal Seourlty **Board** shall withhold from oertlfioatlon to the secretary of the Trea8uzy for payment the amount.8determInedby it parauant to mmtlon 502 (a) of Title 42 to be neQe*aary ror the proper admlaIstr6tloa of eao& state*s unsmployment comprnsatlon law, until an amount equal to its ~liquidatlagamount* plus interest Yrom January 1, 1840, at 2 l/2 mr oaatum per annum on

## 534

suoh prtion thereofas MS aot been used as ths measure for rlthholdine oertlrloatloafcorpapent has boea lO withheld trorncertlfloationpurmaat to this pangragh: Frotlded,however, Tbst It o State shall, prior to whlehever Is tha later of (I) thirtydays l f?m the 6loao or tha Slrst regular smslon o? Its l~glrl8tarowlilohbo&m after the approval of thl8 ohaptsr, and (11)Jaaaary 1, 1940, authorise and dlnot the Secnkry or the Treasury to t+aasfer froa Its aoaount in the aasaploymeat trust md to the railroad uaeaploymant oompensatloaaaoouat in **the** unw~ployment **trust** fond **an amunt**  mqwl to It0 *11qu1d6tia&amount*, a0 smouat shall be withheld from certlfloatlon for payment t,osuch state pumaant to this paragraph.*

Peotloa lS (b)or thr Railroad Uuomployment Iasaraaoo 40% (45U.S.C.A. ~00. 363 (b)) **8fhts** rortb the 60th0a8 

### ror **oonptltiag the**  **two sums**  to be **transferrsd under**  **th** fom&oina **pmvislans,** aad 

### ro**forred** to la pour letter se the wproliniaary saoaat- aad the 'llquldstlagamouat.a we quote1

*(b) The Soolal .Seaurlty Board Is hereby dlreokd $0 dekrmiao for eaoh atate, aftmr l **greamat** with the Rail**road** Rotlremeat Board, and after ooasultatloawith such State; the tot81 (horelnaftorzefomd to as the *prollmlaar~ arrrouat.8) of (i) the mataunt reaslnlngaa the balaaooo **of reserve**  **acoounts of**  e8ployers as **oi Yam**  **So,** 1939, if ths unmamployksnt oar&pmsatloa law of suoh State provides ror a type of **fund** kaoua as *Reser?e **AO#uQt8*,** plas (11) lt the uaemploytsaat ao&peasatIon law of suoh Skto **provldos** for a type **of ina4**  **known** as *pooled Fund*
or *&3oladnceount*, that proportion **of** the **balancoe** of suoh Suad or aooount of euah state ao of June 30 lOsO,
as the aaeunt of tamis or uoatrlbutloas oolls& from **o~~loyars** aad thslrmaplayeas plor to Jaly 1, l*SQ, pursuant to its unsaploymat aompea8atton law and amdItad to suoh fund or aooouat boars to all suoh taxe8 or eontrlbutlons theretofore 

### colleatadfromall permao subjoot to its unompla~at aoPtpaanrtlon law ~aadondlted to such **fund or**  aooouat; **and** th& Wlditlonal amoaats (hemlaafter rerermd to am the *Llqoldatlnglrwuat*) of taxer
or aoatrlbutlonsoollrt?taa fxwi oagloyms anb thalr em**ployms rmm**  **July I,**  **lQa9 to**  **Deoeabor 31,**  **1969, putsnant**  to it6 on44s~loymmt aompsaaatlon law.9

### 535

Thus we em that two eouraee ar6 opo to the 3tat.e or mxas under the a~ofe quotaa prorlslona 0r the RailroadUnmplomen0 IaruranC6 AOt: (r)either to authoriru ma direct the seasmtarp or t& **Traaaury** to **tnnsrer** iFor lta aacouat in the Unemploya66tTm6t mul to the RellroadtBmaplopn6nt 

### C@6@6n6atlon AOOOunt 

### in 66ohIruad, mount6 ep,aalto th6 *proUmlaary eamat* ana *llquiaating 

### amoaat," a-peed 86 above pmvia0a, thereby sontlnulng

### to enloy the er8ats
or appropriationsfrom the Federal Tnaatmy to the 3kto **Unemployment** Cti$.nsatiOn**Adrrrlni6tntfOll ?UIld**  **to drfny**  Ch6 **6Xpe66.6 Or**  **48Wbiater** lng th6 

### TexasUnaolployimnt C64n~mation Aot, or,(s) la 

### th6 **aLterm** tive, to 

### reruaesuch authorl66tIon for 4 

### transfer,and b6 fortbwlth denied the tarther benefits ot roch grrurt6 **or** appropriation6

### for l duilnl6tratlre

**exgmas*a** **to thi**  **ever,** 0r 

### aaoh ~pmUalnary tamwnt* **66thated by**  **you to**  **be &4,000,000.**  the st8to **16 aeaordea**  **the** rigat **to Githdraw**  iroa 

### it6partioalar 6060unt In the Uneaploymat %ru6t -4 ana u6e ror admial6tratlv* exgenaea of the State va66@.oy6t6nt Coapn6atl6n **Act, such**  **ammat a6**  **B6 Withheld**  **rXO& 06rtiriOatiCUI**  **rCbr t.h&6**  **pOrJ?OSO rrOIB**  **th0 lrbd4r4i**  **Troaanry.** The prorietoaogov6tiqg **the mch6iss** **’ and**  balaaoing or thee0 traruror6and rfthdrar*16 to arra rm the Fuua8 6tf6oted ar6 8mbadiea in Seatloa 1s (a)aad (0) 0r the R4llrcd vn6aplcvmat fneurmxwe.lot (45U2s.C.k. 860. SSS (4)a64 (0)wading a6 f6mW6;

*(a) The transrers iluorikd in the **proii606 oen**  talned In tha -era1 paragraph6or aubee6tlon (0) or thl6 aeotlon 6h611 not bo 

### aeeme4to oorutltutaa bmash 

### of tE6 BMaltiOB6 6Ot forth in 6OOtiWie (10s(6) (a)ad 118s (6) (4) **or** Title 42; a6r ah611 **the** with&ram1 by a state **rr0lr** 

### lta l 8o ount

in the tlrr*alpliwmat trust runa or .amount8,but not to ibxo0aath6 f&61 ammat tha Socrlal s6attrlt~

mard 

### shallham vlthh616irim 6ortitfeatlim with reapoat 

### to rttoh Stat6 **&wauont to**  

### 6aBmeat~o6(6)of thlraeotbn, b6 wlmd to con6tlCute

### abrash or the **OQlrd$tiO66 6et**  r0e.h in oeotlons 503 (a) (5) 4nd 1lQJ (6) (4)Oi TltlO 48,

*(e)~Tae sooial semmit~.mrd is aatharlwd and dlrooted to odtiry to the 8eo~rataa-y 0r the Tmaeary
ror pymeat, and the stoanurf shall pq, 'tat&t th6 

### railroad anemployqentl+wmaaoe **aeoarmt ,**  **6u0h** 4metJlttu **66 th6**  **seahal** 

### soourltyBoard

### wltgholdsrrem **eertlPlsrtlcm porruaut**  to **6Ub666tfM ’** **I (0)**  **0r t&&6,** **eeotioa &kd**  **t&6 app?trprf&t~Qna**  **a6tB-**

### 536

Son. Orville r'.

Carpeater, Page 14

orized in seotfon 501 of Title 4.2shallbe available for **jxqments authorlzed**  by th16 6ubseotloa. The **seoretery s!r3** 11 tmnefer from the amount of a **Stats** In the **unen** j:loymnt trust f\;nd to the rellrosd unamployraeut **insursnoo** rooount in the un6laploymsnt trust id **6UOh**amountr 86 thr, Sate authorizes **ana** dlrecrta hia 60 to traneror pureuant t0 sub@eation (0) Of th16 6eStiOn."

By the ensOtA?Intof *&use Bill 759, **hot6 ii6gUlar**  **6666ioq** 46th Le@slature, the LeglaZature or Taxas eXerOl66d It6 optionand lndlostedIts deIJl6iOKI to be governed by th6 provleions or tha RallrosdUneatployment **Ineuranoo k,ot**  berelnabove quoted,relating to tbs **transfer** of **moneys** in **the rtatutory**  **6nmmt frost**  the UnaPployma%t Trust Fun4 to the Rellroaa onaqloyment **Itl6UlZlllM xomUUt**  In **SU&** ma, snd t4 contlnirsto reaelv6 griMIt or appmpr1atlonr ror oxpens86 lnoldent to the admlnietrst~oa OS **the** Tetas Unemploymaat **Comp6n66**

**tloa AC:..**  Ina6muoh et!this embllng sob 16 merely 

### deolaratory of the pertinent 

### PrOVt6fOa6or th4 rzallrasa Unemployment **Ineur** ante I.ot.

hereinabove est **out w6**  **de6m it**  **not nea6666ry**  **to** further lsngtbenthl6 opinion 'byquoting at?ne hare.

From thl6 **t6ciOU6** bUt, t0 **OUT. llihd,**  **6606666v** 6tat&AOnt 0r the pertinent prov16lona or the dtea Federsl and State 6taktM leadlug to the ensotm6nt of nouse Bill Ro. 759, 

### hQt6 **RepuZer** Ee~alon, 46th **Legislatum,** we turu to a coaefdoratlonor the oon6tltatlona.llty **of** the **latter statute.**  In **tbi6** oonneotlan,the **r0iioanng qUa6tiO66**  

### eamrgefor cur determlnatlonr

The reepeotive right tit16 interest and olelm of theunitea1&de6 and or ths Stat6'of Tui6 In ana to moneys in the UnemploymentTrust Fr;ubin tha Federal **Treasury,** a portion of wbloh, to th6 extent 0r approximately row mllllon dollars, 16 sought to be tran6rerreaby the Act under aouelderatlon.

fs **Rouse** Bill F&J.759 

### h&e ROgUbr Session,46th l.clgfslatuZ:

**invalid** as 6 produot oi 006rhon by th6 Feaeral atm3rnment

.
3. hrs the eo-aalled waontrlbut10n6wlevied end oolleeted under the Texas Unemployment CnmpansetionAat from *employeraW in ,thia Stats, a6 defiaod in snid Act, a portion of rhlah oantributIon6 eamnrlse the fourmllllon **dOlhr6** lnvolve4 herein. to be 6On6id6rOd

as {ij pub110moneys or **r6~$iti66~1&164** and eolisit6dby the 8t **t6**
or Tesar **rrom** 6uah **“ 66kplOyer6** **’ under**  **it6 power6**  **of** taxation? **0 ‘** **i** lloenee tee6 or exaetiona eolleoted under the rrol1oe xxawer .orthe **State; (e)**  **a t&t.**  i&d **eanasrkd far**  **the spioifio**  **pukpoe.e of**  **unenk** Qloymantrelief, held by tbs Ftato es **trustea** for the -Bfaployeraw.n

Eon. Orville S. ictrpentar, Face 15

who furnished the contrfbutlonfi making up such fund, and inwhich fund such WemployecsWhave a vested interest; 

### (d) trust fund8 held by the State aa trustee ror wemployeos,Ventitled to benefits **under** the Tows CWxuployment Compensation :=ct, and inwhich runds such employeeshave a vested right.

**4. Legislature,**  Is House SillNo. 759, ricts, Regular Qesaion, 46th Considering the **fund** or moneys sought to be trans. f0rMl thereby **under** any of the forego5ng aspects,violative of rrtiole 8, section 6, Conetltutlonor Texas, ~ovldiag that no money shall be drawn from the Treasury but in pursuance of spetlrlc appropriationsmade by law.

5. Is said etotute in oontraventionof artiele,S .*Seotion 51, Constitution of Texns, providing that the Legislature shall have no power to make aug grants or authorize themaklng of anygrant Of publia money to any Individual, assoai~tlon

### or individuals,munloipal or other corporationwhatsoever.

6. 18 said statuteviolative or Article 16, Ssctfon 6, **Constitution 0r**  Texas, providingthat no appropriation**ror** private


### or Individualpurposes shall be mde.

In. approaching **these various**  questions,we think the respeotlveright8 and Oh&IS of the Federal and State Governments in and to the BWJEIsought to be transferred **from** the UnemploymentFund to the iwdlroad tl&c&lployment Insurance acoount should rir8t **be** de**termined**

**.** r&s

pointed out bretorore, this s~tuarepresent~s that **per-** ~tlonof WcontributionsWheretofore oollected **from** *empl0yer8~ subject to the Tents Unemployment Coznpensation Aat,. **but removmI**  **from** its operation by the enactment &the Railro%d UnemgloylpentInsursnO8 i&t. By thla latter **statute** and by %n appropriateamen&u%nt to the Texas t?nemploypent Comp8nsiMoa Act, ~OmployOnrs engaged in interstatecoIIDI%Tae by rail u*re rmoved fromth0 State iiet nnd plaoedwithin the purview of the Railzoad Unemployment In8ur%no8 Act, beCaw8 Con&ress &&.erdned thst the Golleotionby the State
or Texas or neontrfbutlofksW **from** suoh *earploy0r" would constitute

a burden on interstate eommeree. **But** until. the Cosgresspresapted this rleld and declared its intention sIoto do b Btatute, we do not find, under the anthdritias, that "coatiibu tl on@ therstorWeRon. Orville S. carpenter, Fage 16

**mid** into the State @nemployment CompensstionFund or transferred to the Unen@loyment %ust Fund fn tbe Federal Treasury for lnreatment, were illegal exacttons under t.!~e commarce clause of the **Fodsral** Constitution,which the Sate of Texas he6 no right to colleot and which must therefore be turned into tbe Railrwd Unemployment fnsurance~ Account in tbe Federal Treasury as moneys and funda bclonElng to the Federal Covernzent.

All moneys and **funds** colleotedbF the Texan Unemployment CompensationCo11~~1~alon **by** way **of** *oontrlbutlonaWrrcm %mployera= **eubJeet to**  tb State **Act,** whether nngaged ln lnteretate eomneree or lntreetete commarce,were first pleoed in the Unemployment Cappena6tlonPund in accordancewith Sectloll 7 of areid

Act andwere %lngled and undlvlded,w lnithout regard to the nature cf the buslnees of the *employersa frcm whcm such Wcontributlonerwere colleeted. kiter .pacslng through the *olenring aeocunt” of 6eldUnem

### ploymentCompensationTund, a,116uoh moneya without regard to origin,

were l.mmedlately depositedwith ttm Secretary of the Treasury ctf the United States, to the credit 

### of t.heaccount of 

### thleState 

### in the Unemployment Trust Fund, eetabllahed andmalntelned **pursuant to**  **Section** 904 of the E.oclal CecurltyAct, a8 emended, hereinabove eet out. ??eetion7 of theTars8 Unemployment CompeneetlonAct**.u@keS** provlelon for the withdrawal of moneys from suchUnemplcy&it Trust Fund for the payment 

### ofbenefitsin thle State ae follcwe:

“(0) Lis’lthdrawals: Honeys &hell **bo** repulsltloned from thie State*8 aooount in the UnemploymentTrust -Fund solely for the payment or beneflte ana in acoordancowltb reguletlons preserlbedby the 

### Cozamiaelon. The 

### Caamim~lon shall from time to t&me repuialticn from the Unemployment Truet Fund such amcunte, not exceeding the amount8 standing to Its acawnt 

### thenln, as it desks neoesmry ror 

### the payment or benefits ror a reasonable ruttare period. Upon receipt thereof the Treeaurbr shell deposit suchmoney* in ths bmetlt account ana the CWptroller shall Issue hi8 warrants for the payment ofbenefit8 Bolely frownsuah benefit account. Erpenaitures af suoh money6 In ths benefit account and refunds from the olearlng eeaount shell not **be** subjeot to any ~ovisbons or law requiring speoiiicrapproprlatlonaor other formal raleaeeb by State airlcere of money In their cuetody. All warrant6 i88u6a for the payment of benefltrr

and refunds shall bear the ~lg!!etU~ of the Treasurer and the countercsig~tureaP e member of the Cc41~&shalon

or its duly authorized edant for that purpoee. Any ba3cnce of moneys rsquisltloned from the tlnemployment Trust Fund which remaina uneletid or unpaid in f&e benefit acoount after tha expiration of the period **for** whlohEon. Orville 5. Carpenter, Eage 17

**SUCh**IWISE

wre rspuisftioned shall either be deducted **irop.** eetimdtes for, and may **be** utilized for the papent of, beaarlta durIn& suooeedlngperIo&a, or In the **dieoretlon 01**  the ~ommkasIon, &all be redepositedWith the Searotary of the Treamry of'the Unl.ted State0 of Amerloa, to tha oredit oi thla State' B aocount in the UnePplOyPlent

Trulrt

**?und** OS prwlded in subseotlon **(b) or**  **this** aeotIon.m

**State SitatUtW3**  **dLi1ar to**  **the foregoing**  **have O~JW** **betom** the Oourts or other jurlsdlotfonsror.ooastrr;otLon in the O~U~J or Gillturt

to. JOhMon, 68 Pac. (Zd) 1037; ?Y. E. **Chamberlain** ~1. Aadrwr, 2 Pi.



### E. (2d) 22; C&IS. C. Steward Go. ve. DavI8, 59 mp. 

### Ct.883, 301 0. s. 348. and It rar uoiroralyheld that the Federal Gwe~ameat 

### bid not obtafn 

### titlo to aoneya depoalted In the FnemployPrsnt

Trust Fund of tieUnlted State& Trearury but rath r held It in trust, for 

### ime8tsmnt purpoaea, ror thb approprietc atate o$enoIes oharged with the edainl.strmtIoo of'the verlour atste unemployment oompenaatioaaota. The bsnerlolal title In au6h moners **romaine** In the State, never leering the **power end**  oontrol 

### of the 

### Stateauthorities,and the Seoretary of the Treasurywill **honor** e repulsltlon tot thewhole or any part or the ddpolaitin the l?und whenever one Is qtade **by** the appropriate &at* 0rfi0hi.

Thererore, we see that the elalm, right and title or the **Stete** oS Texa6 in **end** to themoney8 oolleoted in the gnat by way or *oontrIbutfoaaWrrom Waployer8~ **in** 

### Texas l **bjeot t4**  **our Unon**  ploymnt OompensatloaAot, a&d, **purrnrant to**  **atattlte,** truirfomd
to theUaeaDloyment Trwt Fund In 

### the Federal Treerury, for **owtody** end invwtment purposw, l* ooinplete aad uulmpdxed to the upu extent am If ruoh fund8 or noneys had beea depwke+d in one of the **State** depoeltories, **mibjeot** to rlthdrawel at any tIme. ReoogniOion

or thim raot Ir eoeorded **by** the pr0rielon8 or the Railroad Unuploymeat Ia#uranee **A&** brelnabore Quoted, eitording thii# and other **States** altilarly crltuated, the **option** oi tranaferrlng 

### thetpOrtlOn **of the**  **Uru5ploym3118 Tracrt**  **YUnd cudled**  ***prelimiMry 8000UCtw**  **aad**

**‘ Ifqtideting**  **aooouat, ”**  **into aa**  aeoount wltblaemld **t ’** **amd ~OWII**  **aa the**  Railroad **Uawploymmt Insurance**  **Aooount.** Thin tranatef ootid not be o0ero.d **by** the RaIlrOad Uaenplo~at InauranOe **Aat, but** 


### an a very persttwlre lndzroewnt 

### to thi8 end, the Congress provided
that tr the several states did not make 8uoh transfer, then 6ranta Or approprIatIoa8 **for e&m.lnhtratir~**  l **xpeners** 0r **the** atate **Wiem** plofa4nt **acta** would **be withheld**  **in** that amount of the fund wbioh the Sate refueiedto trannrer. The Aot of **our** TeZa8 tigis&tWe Under oonslderatlonhere, In antthorIz?.nrs and dh*otlW YOU to mb**th;& trsR@rar,**  **WiTi% $3** **ire** sti.woluat~ryao?e;%mac **by** this **st;sce** of the t&m& an4 **cordlitton or**  **the** 2ailroodUarmployment 

### Insuranae Aat* It falla*& tharerore,

### underour **neoond** questloa, that s&l4 atatun Is RQ: invalid es a praduat of uaaoa&tltutLo&l ooeroloa by the Federal Oovaramsat sad 6 suboe~uent suraender or Btste ~ore~lmw. This 

### lo la aooord **with** Ohe principle snaouaoed Ia theo&&e of Germlohael v. 60. Coal& **Coke Co.,**  **59 Sup.**  **Ct. a6B)**  **801 g.**  **8. 468.** 

It **pow beaoms**  **n&)oens&ry~ la**  locjioal sla;uusaee,

to detertie the **axsot nature**  sad &t&to& of 

### thee ftaadafn order to detersm wtiether

the ~~Islature, by the Act in questloa, oould es&en soatrolovsr then to the extant or aa r~prorlaate ~4,000.00~,bf 

### d;reotin(l

aueh aaouat to be transrerrad to purpose6 rad uses beyoad **$ha** 

### prrsont**eeopo or**  **tbe** 1~ **under** rrhiohIt w&s oolleotd sad **bsymd** the ooatrol cad oaaugeaeat of the State &jimmy **ohmreed** with the l dalai8tration

### of suoh act **and** sasoh funds. The oxaaf limits to this **id$aIry em**  **etated in**  **our third**  **question above.** 

In aoaMmiiJI2 the Oaqloysmat 

### Conpeasotlontaweor the **Rate of**  **Wsnsobueettn, substentie~ly**  idsnfloal to the 40x&& **S6atut.e lipen**  this **subdeot,** 

### tha mpreme **Court or**  **~~as(~sohusettro In**  **Rowe8** ProthermCo. vs. Mass. Unenployasat Caxigensatioa Co~~8&lon, 8 E, A. 124)920, held 

### thrrt suob ssstnteW&S 

### raocte,d **In** the bxeroI&@ Of **the**

iilioepow;- rathar thsa **the** tnr power, lo furtwranoe of tha pub110 alth, surety, RIVAL& sad the geaersl raMaTe. 

### It wea **golate** 

### out **that said**  

### actdid not throw the turdUa.~f its 

### oapwpiae upen rondo **ob** trlaedby geatixurl terstloa **but But**  that ':urd&n upon thu 

### l

zqtloyera rademployess so&t olos*Xy role%& 

### a to e&i renpoazible for tba ooadl

### tionOC uaelaployseat



## wt@t tobe rarasdlad by ths 4ot. It was further

## poInt.tidout that whirs aoa~trSmtleaspafd by oilaplaysrs w&m **tinifestly maslv&8**  **on aooount**  **of** th% mmmislth, ruah **eontrIbu tlom**  aere nat part or the g&a&ml re~snue bf the Oua~omeslth, elthoughpaid lnti: **tho mida**  Treasury, but being ral6Od for OL psrtI&ul&r purpme thrsuch ths rxsroise of the yolfoe pow&r soul4 aet bs diverted $0My other purpolre. **Ta** the **mbme errmt**  **18 d**  **4eoisIon by**  **tk t%nwae**  **Cmart of**  

### Callfornirupva thrOaewloyment Compweti6a 

### Leiw **0r** t&t btotcr, olosely ~arslloli~ fhs **Texas** Sr~tate, in ths eese Or Qllluav. Jobaaoa, 6Z P&o. (2%) 1039. In other dro~lsioasths saslo2ybetmua **Unsop~opaeat mmponstltion**  **Xot8 arlelww8**  **to u~eaa**  **or to**  

### sollaotfros a **par~1oul.m ala&s**  **In order**  **to bull4**  **rrp a**  **trust** rPad**ror** paylag **?aaefltr to**  uasmployeduorhken, and xorkxsea*&CmPensstloniiet#

llksrlno arattirq a fund at She expeass of ss@oy~& 

### a3l &m&rkIag$ SORIBfor pammt to iajursd apagloysss,is polatad ts Ia ooaa&obI&nwith various saast%%u6.ioaal lWbatloa& rpstrut thedive~sloa **by 8**  **&tQtQ** Le~lslatare of iuada hold ia trwt rOr &P&alrlaapurpusss. stttta v. ~l&QP, 196 n. 3. 914; Ytota 9. IadusW81 Domiaalon, l!M E. x. 2.015Ia re Farrell, 23.XZpud. lSl&i St&C& **=ausen, 119 Paa. llO2.mm. Orville S. C4rpenter.Pbee 19

If otherwise ooertitutlonal,It Is our opinion that House Bill 759, Aotr, Regular Session, 46th Le&lature, Is not unoonetltutionalunder the prlnolples amouAoed In the forecoing outhorltlea, 4s **being** an **anlewiul** and Invaliddlverrion of moneys or funds colleotec!

iroraa partloular olam of pereons In '&~s for their benefit or for the benerlt or another partloularclass or **pereons,** end 

### therefOrt!

earmarked and dedloateQ 46 a trust fund In rhloh 

### said employer8 or einploy~esIn Texas, both or either, hare TaBted benafIoIa1 intereats, Ahi6 oonolu4loA Ia groundedupoA the proposItIon, ilrst, that aemployeraa and *employees*,4s deilned In the Unemplop 

### sent Co~pansatlon hot of Terns,

### are not given, under said etatute and the Constitution of Texaa, en7 reatec: rlcht **or** intereat 5~ **and** to the *oontr5butionsW oolleoted from meAployersn,but, on tha oontrary, such OOAOept of reeted rights Is expressly denledl snd seoondly, this oonolusIon Is reaohedbooausewe aAd that themozaers and runt54on deposit either in the Onelaployment Coz~ansatlon Rmd ln the State Treasury or the UneAploymeAtTrust **Fund** In the Federal Treasury, lnoludln~ the tourmlllion dollars involved here, Is tobe oonsldered as pub150 moneys In the **Trasoury of**  the **State** and a part of it8 general revenue&, **subjeot** to eppropr5etIonor other dispositlon by 

### AUtS of the Lep.lsleture whloh do not otherwlse 5m.pinge upon some coAtrollInf

### provlafon0r our Const?tutloA.

The latter poeltlon Is **taken beaauee**  we aonalder that suoh aorreyuor **funds are**  oolleotad **under** the powers of 

### taratlanor tha State of Texarranb are uot referable to the polloa power. f?a 44~ 

### thntthe CoontrIbutIonm* 1evled.u OAand colleetod from *eaployma* 44 defined In the Texas enemploymentCompensation **Aat,** 

### are,aasent~ally end ftmdaplentelly, exoI8e taxea upon the prI+Ilo~e
or reletlonehlp of emplOymtnt IA Toxae, the right to levy suoh tax beln~ iocopnlzed by the deoIefons of the supreme Court and 

### inferior trIbuAsl8 ot the State and HatIon. The aoving purpooe of this peyroll levy la to oroete 4 eurrioient **amount** 0r r4v4nue4 to 4114viat4 the reourrent oonditionm arlsin~ iron urrbmployment.Thle In a pro**per** mad oonstltut5onsl duty end **rW&iOA** ot the State, and IA reaogAitlon thereof large appropfiatlonshare heretofore beea **mude** and "breadbonds* iaaued. Although, revenues tar this purpose are unuolly ralaed by taxes levlec; end oolleotodupon property and par80114 eenorally in Texas, we find nothing In the Constitut5oA to 

### preventthe Leplslature; in **lieu ot**  thle Aethod, fVoA levying 4 tax upon that @lass of employersmost 

### dlrootlycotmoatedwith the **pro** blem, oteA thou@ IA the utme aot, provieion 5s made for the pap 

### Ing **out** or such colle4tions in the torn or benefits to another alaaa, 5.0. 

### assteinqualIrIad employees. Viado not think this roattq piskeathe 40t 

### a regulatory meeaure uIlder the pollee power nor doea **it oonetitute**  the moneys oolleoted thereunder4 trust fund in which either eAploysrs or employees heoe any vested interest. &(IauthorityECII.

Clrvllle

3. Carpenter,Page 20

for thin hold5ng, w nttmd upon the 04444 of !hrmIohnel,et 41 (16. SouthernCoal & Coke Co., 67 Sup. ct. 868, Jolu. 8. 495i C;m;~t; soap co. Y4* U. Se, 57 Sup. Ct. 764, SO1 U. :T.SOS; Bo-land Whola84la CO. vs. hutin, 174 So. 516. oa8e or beeland Xholasc.lo Co. The Supreme Court of 

### AlabamaIn the

vs. uufaan, aupra, and 

### the Suprem Court of the United State8 in the 0440 Or Cermlchael vs. Southern coal& Coke Co., supra, In upholdlw tha valId5ty and OOASt;tut;QA4lIty 0r the Unemployment Carnpona4tIon Aot or Alnbam4, idant in 

### Itaa4iA aspsots to the Texas Act, held the CCJAtributiOA levied by the Alabsnra

Act upon employers to 

### bs nn excise tax upon the pr5qIlaga
or right 

### to amploy. 

### despitetho restriotedpurposes ror whloh the rundsrealized from such tax warn u4aC and tha apparentwant oi relatIon8hIpbetween tha subjeot of the tnx, the a!aployar, snd the banefioiaryof the tax, the oaployea. Thfe holding was baned upan the

### prinoipleof tnxation announoad 5n the onsa or Glnolnuatl Soap Co.

### vs.United Stbtaa, supro, to the Offsot that Ii a tax Is good no a tax and the e9eaIl’Ied purpose to which the prooeeda are tobe devoted 58 one which would austaln a aubsaquont and aeperetenppropriatlon **out** of the ganoral iunda or the tre46ury,

### neitherIsmade Invalid by hair@bound to tho other In the 861~ not or logIalatIon,

In rooosnitionOr the propoeition that the so-called *CODtr/butioAwexacted by the Tax48 

### Unemployment CaapenastlonAat or sod iroa oertaln denlgnated “8 mployeraW ratherthan the pollee powor, '1144 roterable to the tex power and 

### the twos 

### or funds**derived** therefroa 

### were ‘publlomoneys”

### l ubdeot to nppropriatlon or dI~oaItIon In 4nymnner the Le~Ialatum or Texas right see fit, subject to oontrollingoon4tltutlon4lprorl4Ion4, tho k&Islature of Texas in this vary Act provide8 a8 follow4:

wBonefIte shall b4 deemed to bo due and payeblo uAdor thin Aot only to the 

### extentprovided 

### In this Act and to the extant that moneys nre l vellnble 

### thenfor to the credit or the Unemplo~ant Compansatlon iund, nnd nelthor the Stets
nor the Oomalsaioa shallbe llnble for esy mount iA exoeaa or nuch ama.” **Art.** ?i28lb-16, **V.A.C.S.** 19W

%av5n(2 Clsusa: Tho ieplalatum maerves tha right to amend or repeal all or 4ny part 

### of this **Act** 

### at 4Ay tiiw; **and** there shall be no **vested** private right Or 4Ay kind seeinat suah 4arendmant or repeal. All tho right8, prIvilago4, or Itanunitles oonfsrred **by** t&la Aat Or by sots done purruent thereto ahall exist nu?ijeot t0 the power of the LaFialatura to amand or r09e01 th54 Aat 4t sny tirPe.a Art. 5221b-19,Y.A.C.S. 1926.

a this ao~eotj.on however, retthlnlr ~8 shouldpoint to 

### Saot50neo (0) or the 

### Torae tnan@oyzuantaompenaet5on **Aot** pmvldine:for a rcruzd to i:xllVi&ml ocntributors thereunder in the avant it



### sho::ld bed6temi.wd and held by 

### the oourts that the **provlal~** thereof lm~odinf: compulsory **oonttibutlona** lo inysllf. and **~014, and**  

### to **SeQtion** 

### 22 ol snidhotprovidingfor the tanrimaticm 

### a? the entireAct end ths return. ratably to thosemaking *ocdributiaas,~ **6U0h**

### POStiOnof thepun&86rfcmlnedune%pemlod,In the **4t4nt the**  Snprgae Court of the knited States shot&lhole th4 **Federal ?meial**  ssaurlty

### Act **to** 56 unoomtltutionel or lnop4rstiy4 for any 

### reaaan. liielthar



### or these oontlnganaieshaye 

### 008urmd. Thr la& quotsd prwf~lOn for rcrund will nayer b4came oparotite

### b6toauss the Fe&an1 ~o&d SeourIty Aot has 

### been ?nall things upheld IS 

### oonatftutional byth4 !%rprerse

Court 

### in the cm0 of Cbas. C. Strati '&oh. Co.ys. **imYi5, eu9m,**  an3 **tho** other provision ror refwd of *oaatributlons* csmot 

### beoosle

oycri%tiYa

**OB** to the 

### Fund In questianboaausc It tloes not a?pmr fron your latter that suoh "eontributlonsww4m paLU under proper protest so RS to be relundabls, lntho eventour TTJmR@oynent 

### campansetion

Act ahoulbbc held l~nralld by **the** aourt. '$0 dews this psyzxent



### Underprotest ta ?wncoeeaary bsoause SeatIm 20 (b) of the Tsras 

### AOtprovldosthat 

### *in the west 

### thepro*ision&of tii8**Aot** whioh irnpose crontributions, are held invalid or yoid, all **p%ymnte** \rhiah have been yoluntarfl~made under the prorioiono of the Aat shall 

### beand rearsin

the 

### proopsrtr

oil the rUnd to tiich they are Geposlte&* Iiow**ever,** should any *oontributlwab or taxes, snaking up tha &,OOO 000 here, **hays** 

### been collectedfronandpai0by ***4zqUoyers** ***ang%%sdin lst~arstxate**  owneros, under 

### proporprotest, and wlthln the rot4st **~SWo6,** 

### the **%3X84**Un~oyzaent Aot should 

### be etx'lofran by. tii e &arts
asunawtitutlonal, thenL rati&to n&n&, undert&eforegoing prwfsions would 4lieu~r

HdnaVer, at this 

### junotureand in ocmeotlon with the roro**fping diaau88ioa**  we wish to mke it plain thatna 4.m not pwsing
em &h4 oonstitut~onalityof the 3'4%~ Un4@09m3Ui C~Me&tleR Aat but only upon the oonstitutitmalityof Ilow Bill 

### 759,Aots.Rqo~lar S48$1on,dth te&slature. Therefore, exoept as lneldental to th4 lamtax&

### lnipiry,we do notgo into the question of vd34th4r the T4ras Vmmploymsnt Cwpensatlon **Act** ccntratenes krtlola S, S44tiori 3, Cmstlttttloa

of Tarea, prori&in& that Cares shall be laisd and WLl44tsd 

### Sorpu&l.ia

**9ur90805** only, 

### or anyotheroonstitutlFm.crl pFW%aioPr W.ng 60 the val%.dfty of the thmqhym4stt Compe%'Mion Aat, prior to its aaendment

### by theAat 

### underoc?ngllfl4r8tion. Ourpulpcsre

is ~lialtad

to ahowln~thattheapokey involrQd h4x.4is "pttblio mou4y- and t0 a disetlsslon

or the aonstitutloml lp"vl~io2~1 &~owmlW it@ Qsmo~riatlon or a1ago?ml.

Enrin~ detembxx? frm.the foregoing dis4uunsion that XI.B. 

### n00. 759,**Aota, RefTulnr**  

### Session,l&h, **hglslatt?m,** 

### inWudnldln~ the Texas ?mmploymnt ccenpmsat%o~got SO ns 

### to r&awe man the eoo~e

### 544

Bon. Orville S. Carpenter,rage 22

and operation thereof, WcontrlbutIonsw levied upon and *benefits" 

### pafd to *employers* end *employeefPrespeotirely, engaged 5.nInterstate 

### ammrce, and autboritingand directing the transfer or an approxInx3t.e

iOur mIllion **dollars** of such *oontrIbutIona=rrom the Unezzployzaent

Trust Fund In the Federal Treasury to the Rallroad Onemplopnant SxWirance ;rWount in suah FunU, does not, In violation of State and Federal Constitutions,disturb vested rights or said Wexaployersg" or "eaployses,

w either or both. In and to said money, on the theory or a trust rund; and hatiug rurther establishedthat themoneys standing to the credit of the State of Texas In saId Unemployllent Trust Fund of the Federal Treasury, InoludIngthe four mllllon dollars Involvedhere aonatitutesa part of the general revenues or thls State, realized tramtaxa

### tion,and subjeot to lawful appropriation 

### ordisposition 

### bythe Legislature,we now address ourselves to a detsrminatlonof whether or 

### not the attempted transrer and dfsposItIon of taameby House Bill 759 **oontravenes** any of the **sections** or the Texas Constitutionadverted to In questlens four to seven, stated at the outset~0rthis dIsotlaslon. se think beyond **all** doubt this bet 6atIsrIes the requirements 

### or Article0, Seotion 6, Constitution of Texas, for a valid and opeclfle appropriation. although aot Inthe tori%

or an appropriation bill, Seatlon Qa or said 

### bill (Sec. 7a or the Unemployment Compensation

### Aat)alearly eireeta
an a$proprIatlon of the money In qnestlon for 

### the epeidflc

or use by the appropriateagenoy or the Federal Govezarpbnt &

### ~~~
administration-orthe RailroadUnemployment lzlsurancs Aat. It ha~l~been

held siifrleIent

IPthe Legislature, In any manner an6 without regard

### to form,authorizes the expenditure by law, and speefiies

### thepurposeforwhiohthe appropriation Is

### made. Se, Ter. 8ux'848; Terre11 7s. Sp@cs, 104 Tex. 191, 135 S. W. 519.



### ?toreover,

the ractthat the exadt 

### sum indollarsand Cents Is not set forth in that ssotion of the aot makin&the appropxlationdoes not 

### render it uneonstItutlonsl. Two eiaounts are appropriatedknown as *prelImInary aapount* and *liquidating amount* andprouedure Is prwided r4F detimalning and rirlly these 

### exact =Mmnts . 

### ThisbrLn&s the statute within the ease of Atkins

### vs. StateHighway apartment, 201s. ‘1y. 225, and sor~taia~ Its ~alldity.
~inauy we are broUght to a deters&&ion 0r the 

### constltUtionallty**or** Eiouse Bill NO. 959, **AetS.** Re rirar SeasIon, 46th Le&slature, when tested by MutIeLe 3, fE 

### SeQt on 51, Constitutionof Texas,providing that the Leg&slatuge shall 

### have~10 paws%! to make auygrants or authorize the maklr& of any grefftsof publie awrneYHOD. Orville S. Carpenter,rage 23

to any lndlvldual, association of IndiYIduals, suniclpal or other corporationwhatsoever, and Article 16, Section 6, Constitution of Texas, providingthat no appropriationror private
or individualpurposes

### Shall **be** 

### nude. Howe 3il.l759, Aots, Regular Session, 46th 

### Legisl8ture,161 a *grant 0r pub110money within the msanlng or ArtIQle 3, Section 51 or the Constitution, but sueh 

### grant is not made to 'any Individual,assoolatlon of indiriduals,munlalpal or other oorporatIonwhatsoever,n beoause the 

### FederalGovernment 

### or any at Its duly oomtltuted agenales aaanot be reasonably or ralrly brought within those terms. HeIther 1s the appropriationerreoted by this Aot ror a "private or individual purpose-wIthln the prohibition or ,irtIole 16, Section 6 of the Constitution,or a &it or grant to prohlblted Indirlduals for non-governmentalpurposeswithin the letter or spirit OS the restriction oontalned In iirtlale3, Seotlon 51, 

### Constltution

## or Texas.

Uny oasesreoognlze the authority of the Federal @overnment to ee.l.eot and bee&gnat6 any of the lndirldual states of the Union as its agent to further 

### Itsoonstltutional functiona end 

### powers. Conversely,while not rupporteq by equal authority.
we see no reason vhythe State ot Texas cannot., in the exdreise of Its reserved **pormr** to. me **ror** the une?aployment problem in

### oldentto 

### 40maonosrrlers engaged In interstate corameroe,select
as .ltsagent the Board oharged with the administration-or the Ra$&oad T&employment Insuranoe Aot and appropriatemoney to be expended by said Board ln'aooordaneewith that Bet. Cow eding that, ,Jyreason of the Railroad un-f loyment Insnranab ,Aat,thie State.oan no longer exact WoontrIbut ens* iromWamployexsW engaged .iainterstate oomineree, the reserved right to appropriate run&a **for** the reller or unemployment existingrlthln the borders of Texas,whether arIsIng out of 

### interstateor intrastate oommeroe, remains with the State an8 aannot be ~fmpalredor raoYed by 

### anyAOt of Con&ress. s.IkewIse, thb relier

## or unemployment In 

### thevarious states 

### is a matter In~olYIng the general w&fare of
a.+ 

### UnitedStates, end ror that purpose, appropriations by Cone;ress for the reller or unemployment have been upheld. Consequi%ntly,

we see that the 

### reller of unemployment Is the oonourrent 

### 44umm cawern of both the United State6 and the State of Texas, both ao-exlstlngwlthln the same tarltorp. The Federa;l soolal Seeurlty not and **Railroad** l~namploymentInsuranceAct, for the 

### Qovernmmt, and the Texas

### unamployraant Compeneation&at, for the State, 

### are inter-relate& in all 

### their terms add cOrdItion8,aad embody a oooperatlve legislative effort by the two SoYereIgntIes
ror carrying out a public purposa conrmon to both,whloh neithercould fully achievewithout the oooperatlon or the other. The

supreme Court 0r the Enlted state8 has fou;ld nothlaf~in the yederal ConstitutionproMbIting eueh coopercltlon, and we do &t feel impelled to go so far as to eay t&t the foregoprohlbltioneof the Texas Conetltutionwre ever intendedto 

### prffentthe passageof an A0t, such as the one **berare UB,**  design- &d to %SieOtuate this OQiilpon purpose. ilthough comerned my rith the COWtihliiozdity of the S001al Seourity Act Or that pert thereof requeetlngthe vnrloue states to deposit moneys oolleotedunder their uneaployxnent compeneatlon in the un%~@oymt Trust Fund of the 'TTBasury,the language Of the Suprape 

### Courtof the 

### tWted States,In the caee oi Charles C. steward Naehlne Co. vs. Davfs, eupra, 1s enl5.ghtenlag upoatha right of
a state, in the exeralee of its swerelguty, to tolunte.rlly, either by contract or by statute, aaoept an order of 

### theFederal Qovernxient,

looking to a better solution Of their o~mmn probla 

### of uuemployment.we quote:

The lnferenoeOS ab6lcatlon thus dissolves in tklnnwt air wken the deposit l8 

### oonoeltedOS 88 dependentuponQ etatutory 

### emment~ ad not 

### PA n a contracteireutlreto 

### create**a** 

### duty. By th 8 we do 1p" not lntimetethat the oonoluslon 

### would he diiiereat fi a ooatraet u8re **dlsowered.** Sren sorereignsmey eontr%etwlthout 

### derogatingfrom their earsre&nty. 

### Ferryf. Vnited States, 294 U.S. 339, 353 58 8. Ct. 432, 436 95 A.L.R. 1335, 79 L. Ed. 912; i Oppenhelxa,

national Law (8th gd.) fdlOFf ~'~d?&%f&~~ Interaat~onalLaw (4th

Law, 0 469. The states ore 

### at llbe&, upon 

### obtaining the oonsent of Congrete,~ to make T cementswith
one another. COItStitUt%OQ, art. 1, 8 0, pa. 3. ~0610 **vs.** 

### Fleeger,**11 Pet.**  **lfI5, 209,**  **9 L.Ed.**  **680;** ;ho,d$I;g vs. Pdeasaohasetta 12 Fet. 657, 725, 9

Be rind no room 

### for doubt that they may di th; llke'with Comgreee if the ec8en0e of their statehood **la** malntalasdwithout impairmeat. alabame Is seeking

### and obtaining**a** @redIt **of** aany mllliens in.fav~r of 

### her ultismnsout ot the Treasary of the nation. 

### E;orrhere

In our 00lseme

ot geverameat - fa the limitationserpresr 

### or lmplled or our Fe4eral 

### Conetltution

- 

### dowe flrd that she is prohibited from assent- to condlS&ons 

### thatwill aware a **fair** and just requital ior beneflte reoelved.w

Euaatxnent

of Zi0tmeBill 7S9 la a sbatutory aee0ptanee **fer** the State **of** Texae, **freely** and **tolufttarify** 

### mde, al the etato-goo. 0lrllle 8. Carpenter,Page **a5**

fory offer of the iinltedStaW, embodied in its Social seeurlty A& and Railroad Llnsxaployaent Larursnae crst,

to expend,for 

### the p&poses oollected, the four million dollars colleotedby Texa8 forthe relief of the umxaploymQntproblem arisingwlthfn its **b&lore** in 

### aonneatlon with Interstate eomaon carriers by rail.
me grast or appropriation oi this four nilllon dollars by the ~~lsl%ture OS Texae, upon these emdltlonc aad for these purpasex ix olearly a pub&lo o,rg#emmsnfal parpose forwhish grants
or appropriations of publio moneys may be made, **wader** the authority of the cam3f.3

of City of Aromas et al v8. Keeling, 247 S. W. 63.8; Betar Co. ~8. Linden, 220 5. I. 461; Road DistrlatRo. 4, shslby Co.~rs. ALred, 6fj S. Vi. (2d) 164. .Inthe Instaut oass ve have no grant ot money by way of gift or gratuity to a a&ate 

### fmdlvldn& firmor corporation 

### condemnedin the ease oi Texas p&aneaceutlealhsaoclatlonvs. DooXey, 90 8. $i.(2d) 338.

The iraaer8 of the Tdxw Comtltutlon ,robablydld not en- :rl8agethe oumpler inter-relations P- end'eooperatw efforts of rederal and 8tate 8overel.gatle8 uuder our 

### latter-dayeoowmie~amd 

### iadu6trlal

x;lste!a,but their 

### only purpose 

### in writing 

### in- the 

### orgado law, these salutary rsstrfetians agalz@t the waste or giving awey of poblla moneys,was to see to it that the only key t&at 

### shouldunlock the State 'Preaeury -8 a pcrse serv2ag #a publl& good. Heuc~ B**RblL er**  **‘ ~vem8antal**  

### pur1190. 789, AdtiC,

Regular 8e88ioa, 4th L8gislatur6,met8 

### these rsqulmmnts 

### audwe hold sue to bs 

### In-allth%ngs 6oastitutilonal.
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