The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-04-28
TIE PUBLIC PROPERTY FUND.
Would Be Unconstitutional to Use 1t
to Pay Debts other Than Bonds.

Would Be Unconstitutional to Use 1t
TO Pay Debts other Than Bonds.
Atlanta, April 26--The following is the
opinion of Chief Justice Logan E. Block
ley on the use of the public property
fund, prepared at the instance of Hon. r.
e. Park Treasurer of Georgia:
What the constitution says touching
the proceeds of the sale of property
owned by the state is that these proceeds
shall be applied to the payment of the
bonded debt of the state and shall not
be used for any other purpose whatever,
so long as the state has any existing
bonded debt"
What the constitution means by this
language is exactly what it says. In this
instance expression and construction are
one and the same No amount of exposi-
ton or comment can make the text clear
er than its own letter. If the phrase. 'Ita
scripta est, has a direct application to
anything, 1t is applicable here.
1t is utterly impossible to spend these
proceeds under the form of borrowing
them, or any other form. without us
ing" them. No debtor, whether a natural
person or a state, can borrow money
from the same debtor, the same person
or state that borrows it. No loan can
exist without a lender as well as Dor
rover. The proceeds of a sale cannot
lend out themselves. For them to be lent
some person, natural or artificial, must
be the lender. WHAT the constitution eX-
pressly inhibits is using these proceeds
II they are used, not to pay the bonded
debt, but for any other purpose what
ever to pay any other debt whatever
the constitution is Violated and to sub
stitute for these proceeds the proceeds
hA of
! taxation as soon as taxes shall be real
| lzeu, VIII neither prevent the breach nor
| heal 1t. This is so whether the taxes
| relied upon be levied before or after the
rape of the fund made sacred by the
| constitution has been committed The
constitution is broken by doing
the forbidden thing, no matter what addi-
tlonal thing, before or after or at the
| time, be done also. Moreover, it makes a
substantial difference in the bondholder' 8
| security for the state to seize on all the
| specific security which the bondholder has,
! convert 1t TO another use, any pay it
| out TO another class of creditors. With
| the constitution sacredly observed he
| can look both to this special fund and to
| taxation as source from which payment
OF his bonds may be realized; he has this
| constitutional pledge as well as the gen
| eral credit and resources of the state to
liberately think. that he has both these
classes of security, after one of them has
| been withdrawn, not for investment or for
| safekeeping with title to it still remaining
In the state, but to be expended in paying
off wholly different character of indebt-
| edness from that to which the constitu-
tion restricts it's application? After such
! use of 1t is made, the states title to 1t,
| treating the transaction as valid is gone,
1 nd no 4
| plete. The fund then belongs, not to the
| state. but to those whose claims against
| the state have been extinguished by it.
| No longer would this fund continue part
| of the states assets, as it would do were
| 1t deposited In or loaned to a bank of
| deposit under the law applicable to mon
| eys of the state in general. Trustees can
loan out the trust assets but they can
not lend to themselves, nor pay their
own debts with trust money. The distinc-
ton is vital between investing a fund and
spending it-betwen lending money and
paying debts with it. Where a given fund,
such as the proceeds of particular sale,
is parted with in the payment of debts to
which it cannot be constitutionally applI-
| ed It's fused" and more---it is used up
| am aware that / have made this opin-
ion wordy than it need to be- but ! have
not done this to show what the consti-
tuition means, but Gf for any definite pur-
| pose), to show that mere words cannot
| obscure its plain and abvious import.
| should be panied by self-distrust If l
differed with the Attorney General on a
question of real difficulty or doubt but
in this instance, there being, as / con-
ceive. no room for any question at all, l
differ with him with great pleasure-as
much pleasure as respect. And / will add
that my pleasure and respect would go
equally together were / to hear of his
election to the chief magistracy of the
state. But If / agreed with him now
should be gravely apprehensive that age
and a brief collegiate education had made
wreck of my intelligence.
Logan e. Bleckley
Gainesville Ca, April 10, 1901.