State Ex Rel. Graham v. City of Olympia

Hale, J.

(concurring in the result) — I concur in the result but would add that in adopting Const, art. 8, § 7, the people of this state had much more in mind than simply promoting a safe depositary for public moneys. The language of the provision speaks directly against the giving or lending of public money to any persons, corporations or associations under all circumstances and conditions except for the support of the poor and infirm:

No county, city, town or other municipal corporation shall hereafter give any money, or property, or loan its money, or credit to or in aid of any individual, association, company or corporation, except for the necessary support of the poor and infirm, or become directly or indirectly the owner of any stock in or bonds of any association, company or corporation.

This provision of the constitution, I think, admits of no exceptions save for the poor and infirm and must be applied categorically even though the contemplated loans or investments be well secured and exceptionally safe.

Nor was Const, art. 8, § 7, adopted as the court suggests simply to prevent the lending of public moneys to the railroads. To the contrary, it was and is expressly aimed at the use of public money by any private entity for private purposes. It is directed against the use of public money for political favoritism, preferment and manipulation; it is aimed at preventing or curtailing the private economic enhancement of persons and corporations by the employment of public funds for private purposes. It is designed to protect the public purse from private spending. The prohibition in the constitution of the use of public funds for private purposes, as I see it, is directly aimed at particular forms of graft, corruption, favoritism and special privilege in politics and government, for it lays down an inexorable principle that anyone standing for public office who openly or tacitly promises to make any part of the public treasury available for private profit, use, manipulation or investment will be unable to keep such promises lawfully.

I do not, however, consider the time deposits as déscribed in this action, and subject as they are to withdrawal at will without substantial penalty when deposited in a bank, to constitute such a prohibited lending or giving of public money or credit to the depositary bank, and accordingly would affirm on this narrow ground.

Rosellini, J., concurs with Hale, J.