Alaska World War II Veterans' Board v. Territory of Alaska ex rel. Olson

In April 1946 the legislature of the Territory of Alaska passed an act providing for loans and bonuses to veterans of the Second World War, provision for the necessary funds being made by the imposition of a sales and service tax. Laws 1946, c. 27. The tax is to terminate at the end of the quarter during which $3,250,000 or more has been collected. A board was set up to administer the act. Since a period of several months would necessarily elapse before funds were received from the tax, an interim appropriation was made to enable the Board to begin functioning immediately. The section making the appropriation reads: “There is hereby appropriated the sum of three hundred fifty thousand dollars ($350,000.00) for deposit in the Alaska World War II Veterans’ Revolving Fund to be used for the purpose of this Act, including expenses of administration; provided, however, that the Board shall pay back such sum to the Territorial Treasury as soon as revenues collected through the tax imposed by this Act will permit, but not later than four years after the effective date hereof.” 1

In August of 1947 the Territory instituted mandamus proceedings to compel the Board to repay the…