Anglo London Paris Co. v. Johnson

MYERS, C. J.

This is an application for a writ of mandate to require the respondent as state treasurer to sell and deliver to petitioners at the price bid by them at a sale conducted by respondent on October 23, 1924, a certain issue of two million dollars par value of “Veterans’ Welfare Bonds,” pursuant to the provisions of the Veterans’ Welfare Bond Act (Stats. 1921, p. 959) and of section 31 of article IV of the constitution. The respondent has refused to issue and deliver the bonds in consummation of such sale because of a question as to the validity of the sale by reason of an irregularity in the publication of notice thereof, hereinafter to be discussed.

The procedure prescribed in the act for the execution, issuance, and sale of such bonds is, briefly stated, as follows: Upon request of the veterans’ welfare board, supported by a statement of its plans and projects with respect thereto, the veterans’ welfare finance committee shall determine whether or not a bond issue is necessary or desirable to cany such plans and projects into execution. If it shall determine this question in the affirmative it shall adopt a resolution to this effect, authorizing and directing the state treasurer to prepare the requisite number of bonds, and specifying the aggregate number, par value, date of issuance, and date or dates of maturity, and the numerical sequence of the bonds, the annual rate of interest, the number,

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numerical sequence, and amount or amounts and dates of maturity of coupons, the specific fund into which the proceeds shall be placed, and the technical form and language of the bonds and coupons. After the adoption of such resolution the bonds are required to be sold in such parcels and numbers as the state treasurer shall be directed by the Governor of the state, under seal thereof, after a resolution requesting such sale by the veterans’ welfare board approved. by the Governor. “Due notice” of the time and place of sale must be given by the treasurer by publication once a week during four weeks prior to such sale in one newspaper published in the city and county of San Francisco, and in one newspaper published in each of the cities of Oakland, Los Angeles, and Sacramento. “In addition to the notice last above provided for, the state treasurer may give such further notice as he may deem advisable, but the expense and cost of such additional notice shall not exceed the sum of $500.00 for each sale so advertised.”