254 AN^NTTAL EEPOKT. 



By reference to the annual report of the Society for 1886, the couditiou of the reserve fund will l)e 

 seen at a glance. (See report of Treasurer Grimes, page 219, Report 1885.) It is given as follows : 



RESERVE FUND. 



Jan. 15, 1881 Accrued Principal $600 (X) 



Jan. 15, Accrued Interest 43 78 



Jan. 20, 1885. Interest for the Current Year 38 62 



Jan. 20. Reserved Principal forl884 200 00 



Reserved Fund Total i882 40 



.\fter giving a statement in detail of receipts and disbursements for the current year the amount of 

 the balance in the treasury is given as the sum of $257.86. Under the head of remarks the Treasurer 

 says: I would respectfully call your attention to the fact that the finances of the Society are insuffi- 

 cient to meet the expenses and maintain the reserve fncd which was placed by order of the Society as a 

 special premium fund to encourage the originating and dissemination of new varieties of apples 

 specially suited to supply the demands and wants of the orchardists of this State." 



In the opinion of the Executive Committee the setting aside of a certain amount annually to be used 

 for payment of premiums Is in accord with the letter and spirit ol the act granting aid to the society 

 as "necessary and proper." The most rigid economy has been observed in order that this fund might 

 be secured for the purpose set apart to be used. 



Respectfully. 



S. D. HiLLniAN, Secretary. 



Attorney General's Office, 



St. Paul, Nov. 3, 1S85. 

 «?. D- Hillman Esq,-, Secy. State HorticuUuml Society. 



Dear Sir: — Your communication has been duly cousiJered. It appears that the legislature in 1881 

 made an annual appropriation to your Society in the words following : 



Sec. 3. "That the sum of one thousand dollars (1,000) be annually appropriated, out of any moneys 

 not otherwise appropriated to aid the said Horticultural Society in the work of distributing their re- 

 ports, collecting data, specimens pertaining to horticulture, providing a suitable place for its books, 

 specimens and articles of the Society, for payment of salary and expenses of its secretary an ; com- 

 mittees for labor actually performed by them, and other uses that may, in the opinion of the board 

 of directors, be deemed necessary and proper. The said sum shall be paid by the State Treasurer on 

 the order of the President of the said Horticultural Society. '' <Sec. 3, ch. 72, Q. L. 1881.) 



That your Society has heretofore annually drawn the entire $1,000, but has set apart a portion of 

 the money so appropriated to create a "Reserve Fund ' which with accrued interest on January 20, 1885, 

 amounted to the total of $882 40. That this reserve fund was created under a resolution of your society 

 passed at its meeting in January 1882, which is as follows : 



Second. "That the executive committee be instructed to appropriate the gum of ($200) two hundred 

 dollars, to be set aside annually from the annual appropriation of $1,000 and invested in interest bear- 

 ing bonds, interest and principal to be devoted to a premium list, with the object in view of increasing 

 our list of hardy winter varieties of apples, under such restrictions as shall be deemed best by the So- 

 ciety. 



You say that "In the opinion of the executive committee tlie setting aside of a certain amount annu- 

 ally to be usedfo)- the payment of premiums is in accord with the letter and spirit of the act granting 

 aid to the Society as "necessary and proper." The most rigid economy hsis been observed in order that 

 this fund might be secured for the purpose set apart to be used." 



And my opinion is asked in regaid to the action of the SJate Auditor in withholding orders upon the 

 State Treasurer, for any portion of the annual appropriation while the "reserve fund remains unused, 

 he claiming as 1 understand it, that the annual appropriation is for current expenses and that the So- 

 ciety has no right to draw and accumulate any portion of this annual appropriation for any purpose. 



The State Auditor, in my opinion is right in his holding. Appropriations of public funds must be 

 strictly construed. The constitution declares that "no money shall ever be paid out of the treasury of 

 this State except in pursuance of an appropriation by law." In the case of the People vs. Burns, 27 

 Barb. 9^, the Court in construing 'a similar provision of the constitution of New York, say, "It is in- 



