The New York herald., 1920-11-07
rs THE BONUS LAW VOID?
Two Constitutional Objections to the
Fighters Gratuity.

TIC THE NEW YORK HERALD: Assuming
that Proposition No. i. relating to the
soldiers bonus law. has been approved
by the electorate Notwithstanding THE
NEw York HRRAlp's patriotic protest. /
wonder II the bond buyers Will be will
ing TO accept the chances OF litigation
| involved in their purchase. There are
ut least two legal defects. one OF them
more or less technical, tho other going
to the public policy of the State and
the rights of individuals, and this latter
question is open as far as the Supreme
Court OF the United States. for 1t tn
wolves the taking OF the property of the
individual FOR a purely private purpose,
and this can never be due process OF
law. tCitiEens Saving and Loan Asso-
clation v. Topeka. 20 Wallace, 655 !;
Jones v. City Of Portland. 245 u. S. PIT,
221.)
Chapter 'S72 OF the Laws OF 1920.
known az the bonus Law. is attempted
TO be enacted under the provisions of
Section OF Article VII. OF the State
Constitution. which provides that mo
debts shall hereafter be contracted by
| or on behalf OF this State, unless such
debt shall be authorized by law. for
some single work or object, to be dis
| tinctly specified therein, and such law
shall impose and provide for the collec-
ton OF direct annual tax ito pay, and
sufficient TO pay, the interest on such
| debt ms 1t falls due. and also to pay ana
discharge the principal of such debt
within nifty years from the time OF the
| contracting thereof"
The statute will be, searched in vain
FOR any provision for the raising of a
direct annual tax. and the Constitution
has declared that no debt shall be cre-
ated except upon the condition OF pro-
vidinS such n tax In the very law that
| creates the debt. The Constitution has
said that the thing shall not be done,
and that is enough. twood & Seiick V.
Ball. 100 N. Y. 2l7, :24; Village of Fort
Edward v. Fish. 156 N. Y. 3s3, 373.)
But passing this question, Section 4
of Article VII is limited and modified
by the provision of Section / OF the
same article. which provides in language
unmistakable that ''the credit Of the
state shall not in any manner be given
or loaned to or i'm aid Of any individual,
association or corporation" This Is
merely constitutional codification of
the fundamental rule of law that the
state has no power TO take the money
or property OF an individual for private
purposes.
This whole question wars carefully dis
cussed In connection with the case of
Bush V. Board Of Supervisors (159 N.
\. 212). arising under Chapter 664 of
the Laws Of 1892. which attempted to
pay the drafted men of the civil war.
The act, In spirit Identical with that of
ne bonus law. was declared unconsti-
tutional. The court In discussing the
limitation upon the taxing power said:
On general principles 1t has a. least
one Limitation. and that Is that the money
TO De raised must be required for some
| purpose that in some sense Mt least
can be said to be public. The Legi.la.
ture cannot authorize taxation for the
purpose Of making gifts or paying gra-
tuities TO private individuals.
1t is quite clear this was the purposc
OK the act In question. The individuals
Tor who1e benefit the tax was 20 be
ieVied under the act had no claim legal
or equitable. against the town or county
where the--nioney was TO be raised by
taxation. Those who actually served un-
oer the conscription only discharged their
obligation to the general Governrne A.
Those who cornmuted simply paid no
much money II order 10 be relieved fron
the obligation TO render military service.
In either case the Individual did moth
Ing more than to discharge his obliga-
tons to the Government as citizen.
ana hence hc had no claim against tho
locality TO reimburse him for WIN, ne
was Obliged to do The fact that a ma
Jority Of the taxpayers requested the
s"'~rv's"-s 20 '.yy 'he 'ns is OF no i'm
por'"nce. maJonties. however. potent IN
many respects. haye no power to irnpo,e
taxes upon the minority for the purpose
OK raising money TO be devoted TO gifts
or gratuitics 20 individuals.
BENJAMIN s. DEAN.
IA