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 i8 adr ror 

th4 mu48r43r out of- the stat4 uiwnp10y&amt Trust Fund to 

the Failroad ulaeIll~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 of this -t 18 61660 a r88pOn8ibility of 

thci Soelal Seowlty Ba r d l r ter 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 smealsd et the recent 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\llar 888s$On 00 the 

S.8glaleturs to euthorirce end dirmt the aroretery ef the 

TTOaSUry t0 tXVUt8rer rrCiE th0 TOzS8 uaaePigOOat OmppOa8atiog 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. 

-90 rar as wa know, the Validity Or eon8titutlanallt~ 

0r the Ballrad Uneuhploym6nt Inauranee bet has nwer beoa 

-888d upOn by the OOUTt8 or the %hitOd Stati 

the velldlty or oonetltutiandity of RoPse Bil i 

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 r4onoy la.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 timeI t0 &UthOr%s8 

and ulrsot this tranefer, 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, end Tltlee 7, 8 and 9, BOOtiOIl8 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 

read Unemploymmt 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 Eailroad Unanployment 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 eon8tltutlOnallty or tb hot of the terms l.&8latum clt8d. Con8.+Ontl~, iOr PUrpOSeO Of thi4 Opb~iOn, tha provlslona IS the federel 

soolal Seourlty Aot and the Railroad Unsacgloyxant Ineurenoe Lot, 

mrtinent to the lnatent inpul~, wlll ba eaaumd to be in all thiag8 

0Onatitutional. In ptwefng, howaver, it might ba etate4 that the FaUera1 Eooial Geeurity Aot wasi, by a divided Euprum Cow%, held to be 

oon8tltutional in 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 prorl~~lonr of euah mot8 would not be amlea. The prorl8lonc whioh we 

6eem pertiaeat are those invol~I.ng th* oreetlorr an4 malntenano8 ef 

the Un~plOyaent OOwanaatiOn Iund and Unemployment Coa~aaatlon 

Adminl6tratlon Pun0 in tha State Tmaswy, the Fnsatplo*ent Truat 

Fund In ttmFeder61 Trcaauzy, end the Railroad Une.mploymant lnewaaoe 

Aeoomt In aaid latter funk 

Oa Au&sat 14, loaS, the redem Soolal 8eeurlw Aot baoema 

0rfe0tiY0, 4834 uuraunat thereto as rerleetad In tha emergency elauso, 

Benate Bill. Ro. 6, kOt8, 9rd Called Se88lon, 44th Leglslatare, beemw 

l rfeotlve Ootober 27, loiN, to protldo for the Texas Onaarploymant 

Ccmlpen8atioll 4JE tail. Tha Faderal Aot 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 oompensatlon mae6urea and for t% jroteotlon of auoh atataa trcia unfarorabla bu8in888 oondition8, ocnaper’ad 

to etetes whlah did not have such Ieglslation, tha Federal Act protldsa that an employer rang 0radlt 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 oempeaeatl6a I.&r, whloh baa been 

orrtiilad by tha Faderal BooSal Saieurlty Woard~aa having oartaia 

Preaorlbed provld oaa. Oaa Of thaae Is that al.1 monaga reoalved 
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 

True t y'ulld. 

For the plrpoea or providing wbewfits* to tke unsaployed 

of Texas oomfng within the mlew of the Texas Unemployment Ccapennation hot, 6Cid hot require8 oartsin employera of Texas to take 

annual payment8 or Woontrlbutlonsa measured by a graduated peroentage 

of the payroll, and theoe *oontrlbutIona* ara paid into the Onemployaent Compensation Fend In the State Treasury, whlah ir entablirhed and oontrolled by Artlole S??Elb-7, 8~ mended, in the following 

manner: 

"(a) '~Sstabliahment and Controlr There is hsrcby 

established as a cpeoial fund, seprate and apart fram a11 

pub110 moneys or funds of this Gtate, an Gnemployment 

Compensation Fund, whloh ahall be adninlatered by tha 

ComIBalon exolurlvely for the porpoass or this Bat. 

This fund shell oonaist of (I) all contributiona aolleoted 

under this Aat, together n&t& any lnterert tbereoon oolleoted 

jnarstrant toEeotlon 14 of this Aott (2) all fine8 and penaltfea collected purtwant to the m0116ion6 of this Aot; 

(8) Interest earned upon any moneys in the fund; (4) any 

property or aeourltlea aoqulred through the use or mona~8 

belonging to the fttnd; and (5) ell earninga Or maoh property or seourltlsa. All moneys in the rad shall be 

mingled and undivided. 

"(b) kooounts and Depositi The State Trealrursr 

shall be treasurer and 8uotodiatn of tha fund rho shall 

admInister mob fund in aaoordanoe with the direotione of 

the Cemmlselon and the Comptroller #hall lseue warrant0 

upon it In aooardanoe with suoh regulations as the Corn-- 

mission shall preaorlbe. The Treasurer shell maintain 

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 payable to the fund, 

upon raoaipt thereof by the Comlclrton, ah%11 be forwarded 

to the Treascror who ahall imnadiately deposit them in t?ie 

olearlng aooount. Rerunds payable purrrusnt to faction 14 

of this Aot may be paid from tha olaarlng ~aacount upon 

warrant.8 issued by the Comptroller under the dlreotlon of 

the W~Mdfi6ion. firter olearanee thereof, all other moneys 

in the alearing aooount &all be ,hmedlately deposited 

with the Seorebery of the Treasuty of 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 

oontrery notrlthstandlag. 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 

aaoouute may be depoalted by the Treaeurer, under the direotlon ot 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 shall be 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 

referred to In the foragoing statute, is oonatltutod ae 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 cif the Treasury la euthorlzed and dfreoted to reoelte and hold in the fund all 

moneys depoelted therefn by a State agenay irem a State 

unemployment rund, or by the Rsllroad BetIremnt Board 

to the credit of the railroad uuemptoyaent insuretiee aooount. Suoh depoelt may. be sade blreutly wlth the 6eoretary of the Treasury cw with any Federal Reesrre bank or 

member bank of the Yederal Reeene Syetaa designated by 

him ror euoh purpose. 

“(b) It shall be the duty of the Seoretary 8t the 

Treasury to invest suoh portion of the Fund a s I.8 nat , 

in his judgment, required to nnat eurrent withdraw8le+’ 

.suah InrestEent my be laade only in intereat bearing ebligation8 of the United State8 or ~1s obligation8 guaranteed 

as to bath prlnoipal and lntareet by the Unlted~ States,. 

For euoh purpose euoh obligation8 amy be aoqulrad (1) 

on or$gInal Issue et pr, or (2) by purphew of out+andlng obligation6 et the market paioe. %'h#,purposae f.Dr 

whloh obllgatione ol’ the Vnltad Water. may bo Is&ae&tuBd~ 

!?ectlon 752 of Title 231, are hereby -tended to authorlee 

the lasuanoa et par of ep@atsl obligations erolueivdly 

to the Fund. Suuah apeoiel obllgatloae ehall bear iaterast 

et a rate equal to the average rate of Intareet, omputed 

aa of the end of the calender month 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 Interest at 

suoh sjmclal obli&etlons #hall be the multlpls of oneeighth 02 1 par centum next loiter than such average retb. 

Obli~etione other than suoh speolal obligations may be 

aoq,lired for the nJnd only 08 suoh terma as to.provide 

an lnvestnent yield 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) .4hy obligations aoqulred 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 prooeeds fro;a the sale 

or redersptlon of, any obligationa held in the Fuud ahall 

be oreditad to and Bonn a part ci the Fund. 

n(e) The fund shall be fnveatea as (I slhgle find, 

but the Ssoretary of the Treasury shall rimlntaia e separate 

book socount for saoh State agenoy and the railroad unemplop4nt lnsuranae aooount ana shall credit quarterly on 

Marah nat, June SO, Septaaber SO, aud Moember 31, or 

each par, to eaoh aaaount, on the bmlr or tlm avomgs 

dally balanoe of suoh aocount, a ProportIonate part of tha 

earnings or the tuna for the quarter ending on aroh data. 

"(f) The Searotary of Treasury Is authorize4 e&l 

dlreoted to pep out or the Fund to any Stat& agenay auoh 

twmunt a8 It map duly requirltlon, not exceeding the 

azaouut etanblng 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 rallroad unemploymnt 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' 

State UneEploymnt Compenea’tlon Law tbt "all money vithdrswn fraar 

the Unemployment Trust Fund by tha Stat8 Agency shall bo use& aOhlf 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 said Aot 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 Compensation Xdalnlstratlon Fund. 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%tion of this Aot, 

and for no other purpose whatoowsr. Tha yuud ah%11 eonsiat or all moneys approprletaa by this ztata, end all 

money8 received from tha United mater o? Amarloa, or 

any agency therao?, including the ;.ocial Seoeity Barrd 

and the United States Snployaeat Sarvloa, all aonayr 

oolleotad by the Comisslon aa coat% or ieae ohargad by 

the ComaIsalon for rurnfshlng photostatlo or aertl?lad 

aopies of recorde of the Cuani%sion, or fee% oherged by 

the ComIsaIon for msklng audlfa pursuant to the authority granted in thls hot, or from any other souroa, fop: 

euoh purpoma, end shall be adminlatarad rap%r%ta and 

apart frav all public moneys 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 shall ba 

continuously avall%bla to the Cmunlsslon for aXp%naltute 

aonslrtsnt with this Aot. . .* 

Tha foregolag unamployment Companaatlon Admi5lstratIon 

Fund la red by grantr thereto by tba Federal Owarnmaat under 

RaatIona SO1 and 80% of th% E,oaIal Geourity Aot (4s U.S.C.A. 3aatlana 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 %Dproved by 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;i tl;a number of persons 

owsmd by the Steto law zind or 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 oharged with the admlciatration of euoh 

law the amouxit w 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 eponeored by rho 

Fuderal and Ytata Cwwnaente, as euok~ funds exietsd before 

the advent of the Railroad Unemployment Insurance ho8 on June 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 l xmee of the dew rho0 by C~s~greee. ror admlnietratl*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, eleoted to 

preempt the ii814 of un5niployment ooapeneation in 80 tar as 

explorer-employee rslatlonehlp8 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 oonetitutional power 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 the TVXU Ucomployment Compensation ME upon t&a eeme eubjeet. 

??hile this, of lteelf, vou.Id pause ths State etatute upod 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 Gallroad Wiemployslent Insuranoe Aat, (45 U..:.C.A. 363),provldlng as follows: 

"(a) By enaomnt of this ohaptor the Congress naakes 

erclualve provlaion ror the payment of unemployment benefits 

ror unemployment occurring after Jw.e 30, 1939, based upon 

employment (as deflnsd in ttis ohapter). MO employee shall 

have or assert any right to unemployment banei'lts under an 

unemployment oompensatloo law of any State with 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 lnterfersnoe with the erreotlvs 

regulation of, lnteratate uoramar0a. 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 performed prior to July 1, 1939, an6 prior 

to such &ate eaployment as defined in thls ohaptsr shall 

not oonstltuts *Service dth rsspeot to which unemplo)psnt 

oomgansatlon Is payable under an (or *8ervioe under any') 

uns@oym< oomponsation sy~$em (or *plan*) establlshsd 

by @:&ot or Congrss$* (or *a law of the United statas*) 

or *e&ployment In 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 *benefltow as 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 (48 U.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 Inquiry nil1 tlnd it8 

way into this Fund, ws are not 6onoernsd wlth It further than 

to make note of thts taot. The Railroad Unemployaent faauram0 Fund, or rather Aeoount althln a Eund, oreated 
Boll. CX’ViilS c. Carpenter, Fage 10 

by the i?ailroad Una8ployA8At Insuranoe Aot is the ;urticular acoowt 

with whloh 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 lneuranoo AOt (4s G.S.C.A. 300. 260 (a) k (b), l stabll8hlng 

the Railroad Unemployment Insuranoe Aoeount. 

"(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 appropriated to the acoount In acoordanoe with any provision 

or this chapter or vlth any provision of law now or hereafter adopted; (iv) a proportionate part 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 pursuant to eootlon 562 (g) or creation 362 (8) of this ohapter. 

Eotvrlthstandlng any other provlalon OS 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 payment of 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, shall make payments from 

the aooouat directly to such person or aompnny of 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 dlstrlbutlon by It through employment 

orfloes or In such other manaer as the Board deema proper.' 

Xot for the purpose of ooorolng the Texas mmaplopeat 

Coapensatlon ColPaiesIon acd siailar rtats l genoles of other states 

Into tranaterrlng to the Iiallroad Unemployment Insuranoe Acoount, 

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 Fallroad Unmploymtnt 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~ oolleoted but not tranoforred. %?a 

quote: 

"(0) The soolal Soourlty Ewrd shall rlthhold 

from oertIfIoatIon to the setretfiry of the Treasury Sor 

pyment the amounts determined by it pursuant to aeotloa 

502 (a) of Title 42 to be moemary for the propr admlalstratlon or each Ctats*s unQoplo~nt-conpenaatiop 

law, until an amount equal to ita *preliminary amount* 

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 *prsllmInary aiouat*, no amount shall be withheld 

from osrtltloatlon for payrtent 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.8 determIned by 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 ~liquidatlag amount* plus interest 

Yrom January 1, 1840, at 2 l/2 mr oaatum per annum on 
534 

suoh prtion thereof as MS aot been used as ths measure 

for rlthholdine oertlrloatloa fcor papent has boea l O 

withheld trorn certlfloation purmaat to this pangragh: 

Frotlded, however, Tbst It o State shall, prior to whlehever Is tha later of (I) thirty days l f?m the 6loao or tha 

Slrst regular smslon o? Its l~glrl8taro wliloh bo&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 oompensatloa aaoouat 

in the unw~ployment trust fond an amunt mqwl to It0 

*11qu1d6tia& amount*, a0 smouat shall be withheld from 

certlfloatlon for payment t,o such state pumaant to this 

paragraph.* 

Peotloa lS (b) or thr Railroad Uuomployment Iasaraaoo 40% 

(45 U.S.C.A. ~00. 363 (b)) 8fhts rortb the 60th0a8 ror oonptltiag the 

two sums to be transferrsd under th fom&oina pmvislans, aad roforred to la pour letter se the wproliniaary saoaat- aad the 

'llquldstlag amouat.a we quote1 

*(b) The Soolal .Seaurlty Board Is hereby dlreokd $0 

dekrmiao for eaoh atate, a ftmr lgreamat with the Railroad Rotlremeat Board, and after ooasultatloa with such 

State; the tot81 (horelnaftor zefomd to as the *prollmlaar~ arrrouat.8) of (i) the mataunt reaslnlng aa 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 *&3olad nceount*, 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 thslr maplayeas 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 colleatad from all permao subjoot to its unompla~at aoPtpaanrtlon law ~aad ondlted to 

such fund or aooouat; and th& Wlditlonal amoaats (hemlaafter rerermd to am the *Llqoldatlng lrwuat*) of taxer 

or aoatrlbutlons oollrt?taa fxwi oagloyms anb thalr employms 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 Railroad Unmplomen0 IaruranC6 AOt: (r) either to authoriru ma direct the seasmtarp or t& 

Traaaury to tnnsrer iFor lta aacouat in the Unemploya66t Tm6t mul 

to the Rellroad tBmaplopn6nt C@6@6n6atlon AOOOunt in 66oh Iruad, 

mount6 ep,aal to th6 *proUmlaary eamat* ana *llquiaating amoaat," 

a-peed 86 above pmvia0a, thereby sontlnulng to enloy the er8ats 

or appropriations from the Federal Tnaatmy to the 3kto Unemployment 

Cti$.nsatiOn Adrrrlni6tntfOll ?UIld to drfny Ch6 6Xpe66.6 Or 48Wbiaterlng th6 Texas Unaolployimnt C64n~mation Aot, or,(s) la th6 aLtermtive, to reruae such authorl66tIon for 4 transfer, and b6 fortbwlth 

denied the tarther benefits ot roch grrurt6 or appropriation6 for 

l duilnl6tr a exgmas*a tlr e to thi 

ever, 0r aaoh ~pmUalnary tamwnt* 

66thated by you to be &4,000,000. 

the st8to 16 aeaordea the rigat to Githdraw iroa it6 partioalar 

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 prorietoao gov6tiqg the mch6iss’and balaaoing or 

thee0 traruror6 and rfthdrar*16 to arra rm the Fuua8 6tf6oted ar6 

8mbadiea in Seatloa 1s (a) aad (0) 0r the R4llrcd vn6aplcvmat fneurmxwe.lot (45 U2s.C.k. 860. SSS (4) a64 (0) wading a6 f6mW6; 

*(a) The transrers iluorikd in the proii606 oentalned In tha -era1 paragraph6 or aubee6tlon (0) or thl6 

aeotlon 6h611 not bo aeeme4 to oorutltuta a 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 o unt in the tlrr*alpliwmat trust runa or .amount8, but 

not to ibxo0aa th6 f&61 ammat tha Socrlal s6attrlt~ mard 

shall ham vlthh616 irim 6ortitfeatlim with reapoat to 

rttoh Stat6 &wauont to 6aBmeat~o6 (6) of thlr aeotbn, 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 

anemployqent l+wmaaoe aeoarmt , 6u0h 4metJlttu 66 th6 seahal 

soourlty Board wltgholds rrem 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 4.2 shall be available for 

jxqments authorlzed by th16 6ubseotloa. The seoretery 

s!r3 11 tmnefer from the amount of a Stats In the unenj: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?Int of *&use Bill 759, hot6 ii6gUlar 6666ioq 

46th Le@slature, the LeglaZature or Taxas eXerOl66d It6 option and 

lndlosted Its deIJl6iOKI to be governed by th6 provleions or tha Rallrosd Uneatployment 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 contlnirs to 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 PrOVt6fOa6 or th4 rzallrasa Unemployment Ineurante I.ot. hereinabove est out w6 de6m it not nea6666ry to further 

lsngtben thl6 opinion 'by quoting 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 coaefdoratlon or the oon6tltatlona.llty 

of the latter statute. In tbi6 oonneotlan, the r0iioanng qUa6tiO66 

eamrge for cur determlnatlonr 

The reepeotive right tit16 interest and olelm of 

the unitea1&de6 and or ths Stat6'of Tui6 In ana to moneys in the 

Unemployment Trust Fr;ub in tha Federal Treasury, a portion of wbloh, 

to th6 extent 0r approximately row mllllon dollars, 16 sought to 

be tran6rerrea by 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 waontrlbut10n6w levied end oolleeted 

under the Texas Unemployment Cnmpansetion Aat from *employeraW in 

,thia Stats, a6 defiaod in snid Act, a portion of rhlah oantributIon6 

eamnrlse the four mllllon dOlhr6 lnvolve4 herein. to be 6On6id6rOd 

as {ij pub110 moneys or r6~$iti66~1&164 and eolisit6d by the 8t t6 

or Tesar rrom 6uah “66kplOyer6’ under it6 power6 of taxation? 0 ‘i 

lloenee tee6 or exaetiona eolleoted under the rrol1oe xxawer .or the 

State; (e) a t&t. i&d eanasrkd far the spioifio pukpoe.e of unenk 

Qloymant relief, 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 in which 

fund such WemployecsW have a vested interest; (d) trust fund8 held 

by the State aa trustee ror wemployeos,V entitled to benefits 

under the Tows CWxuployment Compensation :=ct, and in which runds 

such employees have a vested right. 

4. 

Legislature, 

Is House Sill No. 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, Conetltutlon or Texas, ~ovldiag that no 

money shall be drawn from the Treasury but in pursuance of spetlrlc appropriations made by law. 

5. Is said etotute in oontravention of artiele,S .* Seotion 51, Constitution of Texns, providing that the Legislature 

shall have no power to make aug grants or authorize the maklng 

of any grant Of publia money to any Individual, assoai~tlon or 

individuals, munloipal or other corporation whatsoever. 

6. 18 said statute violative or Article 16, Ssctfon 6, 

Constitution 0r Texas, providing that no appropriation ror private 

or Individual purposes shall be mde. 

In. approaching these various questions, we think the respeotlve right8 and Oh&IS of the Federal and State Governments in 

and to the BWJEI sought to be transferred from the Unemployment Fund 

to the iwdlroad tl&c&lployment Insurance acoount should rir8t be determined . r&s pointed out bretorore, this s~tuarepresent~s that per- 

~tlon of WcontributionsW heretofore oollected from *empl0yer8~ subject to the Tents Unemployment Coznpensation Aat,. but removmI from 

its operation by the enactment &the Railro%d Unemgloylpent InsursnO8 i&t. By thla latter statute and by %n appropriate amen&u%nt 

to the Texas t?nemploypent Comp8nsiMoa Act, ~OmployOnrs engaged in 

interstate coIIDI%Tae by rail u*re rmoved fromth0 State iiet nnd 

plaoed within the purview of the Railzoad Unemployment In8ur%no8 

Act, beCaw8 Con&ress &&.erdned thst the Golleotion by the State 

or Texas or neontrfbutlofksW from suoh *earploy0r" would constitute 

a burden on interstate eommeree. But until. the Cosgress presapted 

this rleld and declared its intention sIo to do b Btatute, we do 

not find, under the anthdritias, that "coatiibu tl on@ therstorWe 
Ron. Orville S. carpenter, Fage 16 

mid into the State @nemployment Compensstion Fund 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 colleoted bF the Texan Unemployment 

Compensation Co11~~1~alon by way of *oontrlbutlonaW rrcm %mployera= 

eubJeet to tb State Act, whether nngaged ln lnteretate eomneree 

or lntreetete commarce, were first pleoed in the Unemployment Cappena6tlon Pund in accordance with Sectloll 7 of areid Act and were 

%lngled and undlvlded,w lnithout regard to the nature cf the buslnees of the *employersa frcm whcm such Wcontributloner were colleeted. kiter .pacslng through the *olenring aeocunt” of 6eld Unemployment Compensation Tund, a,11 6uoh moneya without regard to origin, 

were l.mmedlately deposited with ttm Secretary of the Treasury ctf 

the United States, to the credit of t.he account of thle State in the 

Unemployment Trust Fund, eetabllahed and malntelned pursuant to 

Section 904 of the E.oclal Cecurlty Act, a8 emended, hereinabove eet 

out. ??eetion 7 of the Tars8 Unemployment Compeneetlon Act .u@keS 

provlelon for the withdrawal of moneys from such Unemplcy&it Trust 

Fund for the payment of benefits in thle State ae follcwe: 

“( 0) Lis’lthdrawals: Honeys &hell bo repulsltloned 

from thie State*8 aooount in the Unemployment Trust -Fund 

solely for the payment or beneflte ana in acoordanco wltb 

reguletlons preserlbed by 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 such money* in 

ths bmetlt account ana the CWptroller shall Issue hi8 

warrants for the payment of benefit8 Bolely frown suah 

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 speoiiicr approprlatlona or 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~ture aP 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 whloh 
Eon. 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& suooeedlng perIo&a, or In the 

dieoretlon 01 the ~ommkasIon, &all be redeposited With 

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 jurlsdlotfons ror.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 uoiroraly held that the 

Federal Gwe~ameat bid not obtafn titlo to aoneya depoalted In 

the 

F 

nemployPrsnt Trust Fund of tie Unlted 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 oompenaatioa aota. The bsnerlolal 

title In au6h moners romaine In the State, never leering the power 

end oontrol of the State authorities, and the Seoretary of the 

Treasury will honor e repulsltlon tot the whole or any part or 

the ddpolait in 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 the money8 oolleoted in the gnat by way 

or *oontrIbutfoaaW rrom Waployer8~ in Tex al bjeot s t4 our Unonploymnt Oompensatloa Aot, a&d, purrnrant to atattlte, truirfomd 

to the UaeaDloyment 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 thet pOrtlOn 

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 Wiemplofa4nt acta would be withheld in that amount of the fund wbioh 

the Sate refueied to trannrer. The Aot of our TeZa8 tigis&tWe 

Under oonslderatlon here, In antthorIz?.nrs and dh*otlW YOU to mb 
th;& trsR@rar, WiTi% $3 ire sti.woluat~ry ao?e;%mac by this st;sce 

of the t&m& an4 cordlitton or the 2ailrood Uarmployment Insuranae 

Aat* It falla*& tharerore, under our 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 

the o&&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 ftaada fn order to detersm wtiether the ~~Islature, by the Act in questloa, oould es&en 

soatrol ovsr 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 rrhioh It 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 Conpeasotlon tawe or the 

Rate of Wsnsobueettn, substentie~ly idsnfloal to the 40x&& S6atut.e 

lipen this subdeot, tha mpreme Court or ~~as(~sohusettro In Rowe8 

Protherm Co. vs. Mass. Unenployasat Caxigensatioa Co~~8&lon, 8 E, A. 

124) 920, held thrrt suob ssstnte W&S raocte,d In the bxeroI&@ Of the 

ii 

lioe pow;- rathar thsa the tnr power, lo furtwranoe of tha pub110 

alth, surety, RIVAL& sad the geaersl raMaTe. It wea golate out 

that said act did not throw the turdUa.~f its oapwpiae upen rondo obtrlaed by geatixurl terstloa but But that ':urd&n upon thu l zq tlo yer a 

rad employess so&t olos*Xy role%& a to e&i renpoazible for tba ooadltion OC uaelaployseat wt@t to be rarasdlad by ths 4ot. It was further poInt.tid out that whirs aoa~trSmtleas pafd by oilaplaysrs w&m 

tinifestly maslv&8 on aooount of th% mmmislth, ruah eontrIbutlom aere nat part or the g&a&ml re~snue bf the Oua~omeslth, elthough paid 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 

$0 My other purpolre. Ta the mbme errmt 18 d 4eoisIon by tk 

t%nwae Cmart of Callfornir upva thr Oaewloyment Compweti6a Leiw 0r 

t&t btotcr, olosely ~arslloli~ fhs Texas Sr~tate, in ths eese Or 

Qlllua v. Jobaaoa, 6Z P&o. (2%) 1039. In other dro~lsioas ths 

saslo2y betmua Unsop~opaeat mmponstltion Xot8 arlelww8 to u~eaa 

or to sollaot fros a par~1oul.m ala&s In order to bull4 rrp a trust 

rPad ror paylag ?aaefltr to uasmployed uorhken, and xorkxsea*& CmPensstlon iiet# llksrlno arattirq a fund at She expeass of ss@oy~& 

a 3 l &m&rkIag$ SORIB for pammt to iajursd apagloysss, is polatad 

ts Ia ooaa&obI&n with various saast%%u6.ioaal lWbatloa& rpstrut 

the dive~sloa by 8 &tQtQ Le~lslatare of iuada hold ia trwt rOr 

&P&alrlaa purpusss. stttta v. ~l&QP, 196 n. 3. 914; Ytota 9. IadusW81 Domiaalon, l!M E. x. 2.015 Ia re Farrell, 23.X Zpud. 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 unoonetltutional under the prlnolples amouAoed In the forecoing outhorltlea, 

4s being an anlewiul and Invalid dlverrion of moneys or funds colleotec! irora a partloular olam of pereons In '&~s for their benefit or for the benerlt or another partloular class or pereons, end 

therefOrt! earmarked and dedloateQ 46 a trust fund In rhloh said 

employer8 or einploy~es In Texas, both or either, hare TaBted benafIoIa1 intereats, Ahi6 oonolu4loA Ia grounded upoA 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 reaohed booause we aAd that the mozaers 

and runt54 on deposit either in the Onelaployment Coz~ansatlon Rmd 

ln the State Treasury or the UneAploymeAt Trust Fund In the Federal 

Treasury, lnoludln~ the tour mlllion dollars involved here, Is tobe 

oonsldered as pub150 moneys In the Trasoury of the State and a part 

of it8 general revenue&, subjeot to eppropr5etIon or other dispositlon by AUtS of the Lep.lsleture whloh do not otherwlse 5m.pinge upon 

some coAtrollInf provlafon 0r our Const?tutloA. 

The latter poeltlon Is taken beaauee we aonalder that 

suoh aorreyu or funds are oolleotad under the powers of taratlan or 

tha State of Texarr anb are uot referable to the polloa power. f?a 

44~ thnt the CoontrIbutIonm* 1evled.u OA and colleetod from 

*eaployma* 44 defined In the Texas e nemployment Compensation 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 proper mad oonstltut5onsl duty end rW&iOA ot the State, and IA reaogAitlon thereof large appropfiatlons hare heretofore beea mude and 

"bread bonds* iaaued. Although, revenues tar this purpose are 

unuolly ralaed by taxes levlec; end oolleotod upon property and par80114 eenorally in Texas, we find nothing In the Constitut5oA to 

prevent the Leplslature; in lieu ot thle Aethod, fVoA levying 4 tax 

upon that @lass of employers most dlrootly cotmoated with the problem, 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. asstein qualIrIad employees. Via do not think this roattq 

piskea the 40t a regulatory meeaure uIlder the pollee power nor doea 

it oonetitute the moneys oolleoted thereunder 4 trust fund in which 

either eAploysrs or employees heoe any vested interest. &(I authority 
ECII. Clrvllle 3. Carpenter, Page 20 

for thin hold5ng, w nttmd upon the 04444 of !hrmIohnel, et 41 (16. 

Southern Coal & 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 Alabama In 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 

Ita a4iA 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. despite tho restrioted purposes ror whloh the 

runds realized from such tax warn u4aC and tha apparent want oi 

relatIon8hIp between tha subjeot of the tnx, the a!aployar, snd the 

banefioiary of the tax, the oaployea. Thfe holding was baned upan 

the prinoiple of 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 to be devoted 

58 one which would austaln a aubsaquont and aeperete nppropriatlon 

out of the ganoral iunda or the tre46ury, neither Is made Invalid by 

hair@ bound to tho other In the 861~ not or logIalatIon, 

In rooosnition Or the propoeition that the so-called *CODtr/butioAw exacted by the Tax48 Unemployment Caapenastlon Aat or sod 

iroa oertaln denlgnated “8 mployeraW 

rather than the pollee powor, 

'1144 roterable to the tex power 

and the twos or funds derived therefroa were ‘publlo moneys” l ubdeot to nppropriatlon or dI~oaItIon In 

4ny mnner the Le~Ialatum or Texas right see fit, subject to oontrolling oon4tltutlon4l prorl4Ion4, 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 extent provided 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 shall be 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, ret thlnlr ~8 should point to 

Saot50n eo (0) or the Torae tnan@oyzuant aompenaet5on Aot pmvldine: 
for a rcruzd to i:xllVi&ml ocntributors thereunder in the avant it 

sho::ld be d6temi.wd and held by the oourts that the provlal~ 

thereof lm~odinf: compulsory oonttibutlona lo inysllf. and ~014, and 

to SeQtion 22 ol snid hot providing for the tanrimaticm a? the 

entire Act end ths return. ratably to those making *ocdributiaas,~ 

6U0h POStiOn of the pun& 86 rfcmlned une%pemlod, In the 4t4nt the 

Snprgae Court of the knited States shot&l hole th4 Federal ?meial 

ssaurlty Act to 56 unoomtltutionel or lnop4rstiy4 for any reaaan. 

liielthar or these oontlnganaies haye 008urmd. Thr la& quotsd 

prwf~lOn for rcrund will nayer b4came oparotite b6toauss the Fe&an1 

~o&d SeourIty Aot has been ?n all 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 questian boaausc It tloes 

not a?pmr fron your latter that suoh "eontributlonsw w4m paLU under 

proper protest so RS to be relundabls, lntho eventour TTJmR@oynent 

campansetion Act ahoulb b c held l~nralld by the aourt. '$0 dews this 

psyzxent Under protest ta ?w ncoeeaary bsoause SeatIm 20 (b) of the Tsras 

AOt provldos that *in the west the pro*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 be and 

rearsin the proopsrtr oil the rUnd to tiich they are Geposlte&* Iiowever, should any *oontributlwab or taxes, snaking up tha &,OOO 000 

here, hays been collected fron and pai0 by *4zqUoyers *ang%%sdin 

lst~arstxate owneros, under propor protest, and wlthln the rot4st 

~SWo6, the %3X84 Un~oyzaent Aot should be etx'lofran by. t ii e&arts 

as unawtitutlonal, then L rati& to n&n&, under t&e foregoing 

prwfsions would 4lieu~r 

HdnaVer, at this junoture and in ocmeotlon with the rorofping diaau88ioa we wish to mke it plain thatna 4.m not pwsing 

em &h4 oonstitut~onality of the 3'4%~ Un4@09m3Ui C~Me&tleR Aat 

but only upon the oonstitutitmality of Ilow Bill 759,Aots. Rqo~lar 

S48$1on, dth te&slature. Therefore, exoept as lneldental to th4 

lamtax& lnipiry, we do not go 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 

Sor pu&l.ia 9ur90805 only, or any other oonstitutlFm.crl pFW%aioPr 

W.ng 60 the val%.dfty of the thmqhym4stt Compe%'Mion Aat, prior 

to its aaendment by the Aat under oc?ngllfl4r8tion. Our pulpcsre is 

~lialtad to ahowln~ that the apokey involrQd h4x.4 is "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, in Wudnldln~ 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 *employeefP respeotirely, engaged 5.n Interstate ammrce, and autboriting and 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 

established that the moneys standing to the credit of the State 

of Texas In saId Unemployllent Trust Fund of the Federal Treasury, 

InoludIngthe four mllllon dollars Involved here aonatitutes a 

part of the general revenues or thls State, realized tram taxation, and subjeot to lawful appropriation or disposition by the 

Legislature, we now address ourselves to a detsrminatlon of 

whether or not the attempted transrer and dfsposItIon of taame by 

House Bill 759 oontravenes any of the sections or the Texas Constitution adverted to In questlens four to seven, stated at the 

outset ~0r this dIsotlaslon. se think beyond all doubt this bet 

6atIsrIes the requirements or Article 0, 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 appropriate agenoy or the Federal Govezarpbnt & 

~~~ 

administration-or the Railroad Unemployment 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 the purpose for whiohthe appropriation Is made. Se, Ter. 

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

?toreover, the ractthat the exadt sum in dollars and 

Cents Is not set forth in that ssotion of the aot makin& the appropxlation does not render it uneonstItutlonsl. Two eiaounts are 

appropriated known as *prelImInary aapount* and *liquidating amount* 

and prouedure Is prwided r4F detimalning and rirlly these exact 

=Mmnts . This brLn&s the statute within the ease of Atkins vs. 

State Highway 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, SeQt fE on 51, Constitution of 

Texas, providing that the Leg&slatuge shall have ~10 paws%! to make 

auy grants or authorize the maklr& of any greffts of publie awrneY 
HOD. Orville S. Carpenter, rage 23 

to any lndlvldual, association of IndiYIduals, suniclpal or 

other corporation whatsoever, and Article 16, Section 6, Constitution of Texas, providing that no appropriation ror private 

or individual purposes Shall be nude. Howe 3il.l 759, Aots, 

Regular Session, 46th Legisl8ture, 161 a *grant 0r pub110 money 

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 Federal Government or any at Its duly oomtltuted agenales 

aaanot be reasonably or ralrly brought within those terms. HeIther 1s the appropriation erreoted 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-governmental purposes within the letter or spirit 

OS the restriction oontalned In iirtlale 3, Seotlon 51, Constltution or Texas. 

Uny oases reoognlze 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 Its oonstltutional 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 inoldent to 40maon osrrlers engaged In interstate corameroe, select 

as .lts agent the Board oharged with the administration-or the 

Ra$&oad T&employment Insuranoe Aot and appropriate money to be 

expended by said Board ln'aooordanee with that Bet. Cow eding 

that, ,Jy reason of the Railroad un 

-f 

loyment Insnranab ,Aat, thie 

State.oan no longer exact WoontrIbut ens* iromWamployexsW engaged .ia interstate oomineree, the reserved right to appropriate 

run&a for the reller or unemployment existingrlthln the borders 

of Texas, whether arIsIng out of interstate or intrastate oommeroe, remains with the State an8 aannot be ~fmpalred or raoYed 

by any AOt of Con&ress. s.IkewIse, thb relier or unemployment In 

the various states is a matter In~olYIng the general w&fare of 

a.+ United States, 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-exlstlng wlthln the same tarltorp. The Federa;l soolal 

Seeurlty not and Railroad l~namployment Insurance Act, 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 neither 
could fully achieve without the oooperatlon or the other. The 

supreme Court 0r the Enlted state8 has fou;ld nothlaf~ in the 

yederal Constitution proMbIting eueh coopercltlon, and we do 

&t feel impelled to go so far as to eay t&t the foregoprohlbltione of the Texas Conetltution wre ever intended to 

prffent the passage of 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 requeetlng the vnrloue states to deposit moneys 

oolleoted under their uneaployxnent compeneatlon in the un%~@oymt Trust Fund of the 'TTBasury, the language Of the Suprape 

Court of 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 the Federal 

Qovernxient, looking to a better solution Of their o~mmn probla 

of uuemployment. we quote: 

The lnferenoe OS ab6lcatlon thus dissolves in 

tklnnwt air wken the deposit l8 oonoelted OS 88 dependent upon Q etatutory emment~ ad not PA n a 

contract eireutlre to create a duty. By th 1p" 8 we do 

not lntimete that the oonoluslon would he diiiereat 

fi a ooatraet u8re dlsowered. Sren sorereigns mey 

eontr%etwlthout derogating from their earsre&nty. 

Ferry f. 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~onal Law (4th 

Law, 0 469. The states ore at llbe&, upon obtaining the oonsent of Congrete,~ to make 

T 

cements with 

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 malntalasd without impairmeat. alabame 

Is seeking and obtaining a @redIt of aany mllliens 

in.fav~r of her ultismns out ot the Treasary of the 

nation. E;orrhere In our 00lseme ot geverameat - fa 

the limitations erpresr or lmplled or our Fe4eral 

Conetltution - do we flrd that she is prohibited 

from assent- to condlS&ons that will aware a fair 

and just requital ior beneflte reoelved.w 

Euaatxnent of Zi0tme Bill 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 iinlted StaW, embodied in its Social seeurlty 

A& and Railroad Llnsxaployaent Larursnae crst, to expend, for the 

p&poses oollected, the four million dollars colleoted by Texa8 

for the relief of the umxaploymQnt problem arising wlthfn 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,r g#emmsnfal parpose for whish 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 Distrlat Ro. 4, 

shslby Co.~rs. ALred, 6fj S. Vi. (2d) 164. .In the Instaut oass 

ve have no grant ot money by way of gift or gratuity to a a&ate 

fmdlvldn& firm or corporation condemned in the ease oi Texas 

p&aneaceutleal hsaoclatlon vs. DooXey, 90 8. $i. (2d) 338. 

The iraaer8 of the Tdxw Comtltutlon ,robably dld not en- 

:rl8age the oumpler inter-relations end'eooperat P- w efforts of rederal and 8tate 8overel.gatle8 uuder our latter-day eoowmie~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 

should unlock 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 aud we hold 

sue to bs In -all th%ngs 6oastitutilonal. 

TMVSF1IEyttNly