The Canton mail. [volume] (Canton, Miss.) 18??-1882, 1876-01-29

ally invested; and Secondly, If the State
shall make :; bdtf Investment, and a los
should happen, the State must make IT. good
| Where the State isundcr duty T." rep!ac,
the capital that may be lost, it l. too plain
for argument, that she ought To have the
selection of Investments; and il was in
tended that such discretion should be con.
ferred. And if at any time the Legislature
should discover. or be CT opinion. that al
Investment authorized is unsafe, the Le2is-
lature Is competent to direct such invest
ment not to be made.
Here is fund to be perpetually
Invested in Understanding securities
and yet, none of them enumerated in the
act of Congress, are of that character. The
States, of the municipalities, of the railroad
corporations, have liked maturities. Ger
tainly all that is meant by the act of Con-
gress is, that the investment may bt
changed. from time to time, as the wisdom
of the Legislature may determine; but re-
Investment shall be made, so that the fund
shall be perpetually out, at interest, in safe
stocks or securities, to be selected by the
legislature.
When the money, under the act of 1871
had q longer time to run than three or four
years. If the Legislature for any reason.
should choose to change the investment
there is nothing in the legislation which
prevents it.
The discretionary power of the Leg isla-
ture on the subject is full.
The foregoing observations are applica-
BILE in the main, as respects the college or
colleges chat may become the beneficiaries.
The Legislature is free to establish one or
more colleges Of the character described in
the act of Congress and make them the re-
'cipients OF the interest, for their support, or
it may. as it has done, bestow it upon the
universities =.
These Universities are public eIeemosy-
nary corporations, which dispense the
persons as it directs. They were created
by the State and are supported by public
funds, and are instrumentalities in the
scheme of education. Both of them are
Legislature. Against the State neither OF
them can set up vested right to property
or corporate franchises. Their governing
wards are appointees of the State, without
right or power to continue the succession.
Tie State could withdraw the interest of this
ton and make it the recipient of it.
But the bill AYERS, in substance. that the
railroad company is insolvent, and that the
investment of the fund, or any part of it, in
allegation pt0ceeds on the predicate of law,
that Court Of Equity, by reason of its
general jurisdiction over trusts and trustees
can control or defeat the action of CO.
ordinate department of the Government in
the exercise of its legislative power and dis
cretion, if, in the opinion of the court, it has
been unwisely exercised. If that be So
then the legislative department may revise
and reverse the judgment of a court, if, in
its opinion, it is imprOvident and erroneous.
If the regulation of a subject belongs to the
Legislature, the choice of means is purely
in its discretion. And no. other depart
ment of the government can intervene on
the ground that the law Is unwise. It per-
tins exclusively to the Legislature to say
"stOcks" are saft and solvent. Its de-
eision IS binding and conclusive on the ju-
dietary nor can they interpose on the sug-
g-stion that the stocks they have selected
are unsafe. To attempt to control or re-
strain the law-making department In this
respect, would be an encroachment on the
functions of another branch of the govern
ment. tfii h.
The argdm enti in support OF this aspect of
the bill was that when tile State assumed
the position of trustee, she was subject,
also, to its responsibilities. But when the
State admtnfstera trust, 1t acts through
the Legislature yRerry on trusts. 8 Al, apd
assumes the same measure Of responsibility
that pc. ms to 1t in the exercise of its law
making power. ''s ~
No other mode can be suggested
In which the State can manage fund for
charitable uses. It must by statute devise
the machinery to carry out the object. Ii
the agent, or officer of the State, acting I'M
der the law, disobeys its injunctions, tran
sends his powers, or refuses altogether to
act, then the jurisdiction of the judicial de-
partment, to restrain his Illegal acts and
compel him to conform to the law.
If In this case the Treasurer should as.
sumo to part with the fund upon any other
security than that named in the act, 1t
would be competent for court to restraint
him.
But iftffe court should undertake to de-
clare that the Investment should not be
IN ade, because in its opinion, the security
was suusafe" it would be the assumption Of
right to decide, a question which had al.
ready been determined by the Legislature
and which it alone has the right to decide
A Court of Chancery has the Jurisdiction
to control, advise, and direct private per
sons, and corporations, in the administra.
ton of charitable funds. 1t may direct an
unsafe investment to be called In, and 8
new one of its own selection to be made
it may hold the trustee responsible
in proper cases. Manifestly, the State in it,
sovereign capacity, cannot be called 10 the
bar of its own court, and be compelled tt
render an account, and be directed not te
put out trust fund in the way pointed ou
in her own statute. Fl snH alLi
Another position in support of the bill, was
that the universities were pflFat6 coIpoTa'
tons, and therefore acquired q vested inter
est in the fund, which could not by subse
auent legislation be Invested. 1t Is perhap:
a sufficient answer to that to say that thu
acscomplained of does not deprive them o
the interest; that is still assured to them.
Neither of these institutions are in tn,
legal sense, private corporations. They die
not have their origin in private or indiyid
ual endowment. Both are sustained by pub
lie endowments and appropriations. Thu
title to their property is in the State. They
are public corporations, established and en-
dowed by public authority and funds, ant
are controlled by trustees appointed by tn
State, for limitel terms.-Unigersity VS.
Maudley, Iredeli, Equ. Rep. 2s7. Stew
art s. Porter, IL. Dart VS. Houston, q
Georgia, 5O6. 10 ? u
The answer filed In support of the demur