Los Angeles herald., 1890-04-29

the hands of any officer thereof, shall
Immediately be deposited with the
Treasurer, or other legal depository, to
the credit of such city, town, or other
corporation respectively, for the benefit
of the funds to which they respect
lively belong" The provision of the
charter reads: ''That the bank offering
the highest rate of interest shall be ap-
pointed the depository of public money"
And the contract and bond require the
faithful keeping and proper disburse-
ment of all such moneys, and the pay
ment of all warrants drawn upon the
City Treasurer, so long as there is suf-
ticient money in the fund upon which
said warrant is drawn, and sufficient
money to the credit of said city on de-
posit in said bank, to pay the same.
Plaintiffs counsel contend that the
'sother legal depository" referred to in
the constitution means some other Of
ficer than the Treasurer. If it meant
some other officer it would have been
quite as easy to have used the term "or
other officer" as the term cor other legal
depository" Besides, in the construc-
ton of statutes or constitutions, it must
be assumed that the members of the
Legislature, or of the convention that
framed the constitution, had in view the
condition of things at the time of the
passage of the law or of the adoption of
the constitution, and used terms ap-
plicable to such conditions.
1t appears in this case that prior to
the adoption of the present constitution
there was provision in the former char
ter of this city, and perhaps in charters
of other cities, for depositing the public
funds, under certain conditions, in banks
of deposit. 1t is but fair, therefore, to
presume that this term cor other legal
depository" referred to such depository.
1t is also strenuously contended on
the part of counsel for the plaintiff that
no power can be conferred upon mu-
nicipal body to levy or collect taxes for
the purpose of loaning the same to any
one; that taxes can only be levied and
collected for public uses. But granting
this, it does not appear in this case
that taxes have been levied or collected
for the purpose of loaning or depositing
the same, but only in the ordinary
course, and for the purpose of meeting
demands upon the public treasury.
The question is, aUhere the funds raised
by assessment and taxation for public
purposes, shall be kept or deposited,
ment of salaries or other public pur-
poses?
1t appears by admissions in the argu-
ment in this case that, for years, it has
been the practice of the City Treasurer
to deposit the public funds in one or
more of the banks of deposit of the city
for safe keeping; and it was probably
thought as we'll to receive some compen-
sation, if it could be had, for the privi-
lege of receiving such deposits, as to
have the funds used without any consid-
Grafton, provided the city could be as
we'll secured. And this, no doubt, was
the reason OF the provisions in the old
charter, as well as the present one.
1t is not the object of municipal cor
poration to buy land for the mere pur-
pose of selling or leasing the same-that
is to go into the real estate business
still, when city or town owns or has
become possessed of lands or real estate
which it has no immediate use for, it is
entirely proper to sell the same, or to
lease it until such time as it may be sold
to advantage or required for use. And
accordingly provision will be found in
most city charters, whether framed by
general law or special enactment, author
izing the lease, as we'll as the sale, of
such municipal property. Such a pro-
vision will be found in the present
charter, and was in the old charter,
and is also in the general law
in reference to municipal corporations
II it be consistent with the object of
municipal government for a city to de-
rive profit from the use of its lands in
stead of allowing them to be occupied
gratuitously, it is difficult to see why it
would be less so for the city to receive
some benefit, if possible, for the priv
ilege of receiving on deposit (or using
even) it funds, until such time as they
be required in the ordinary course of its
business.
However, with the policy of the law
the court has nothing to do further than
where it may throw light upon the legis-
lation and aid in the construction of a
doubtful provision.
Plaintiffs counsel contend also that
the provision of the, e,charter in question
is in conflict with Section 424 of the
penal code, one OF the general laws OF
the State. That section provides that
every officer of any county, city, town
or district, and every other person
charged with the receipt, safe-keeping,
transfer or disbursement of public
moneys, who, without authority OF law,
appropriates the same to his own use, or
loans or makes profit out of the same,
for any purpose not authorized in law,
or unlawfully deposits the same in any
bank, or changes or converts any por-
ton without authority of law, or will
fully refuses to pay over on demand any
public moneys upon presentation of a
draft from competent authority, or will
fully omits to transfer the same when
required by law, or wilfully refuses to
pay over to any officer authorized by law
to receive the same any moneys received
by him under any duty imposed by law,
is guilty of felony.
It will be seen from this provision
that it prohibits only such acts as are
done without authority of law; so that
if the provision Of the charter
in question be valid, then the
deposit of the public funds as therein
provided will be by authority of law and
consequently not against the provision
Of tho nopaJ cO6o roforrod fo