PROPOSED STOCK SUBSCRIPTION BY WASHINGTON STATE FERRIES IN STEAM HEATING COMPANY WHICH SUPPLIES COLMAN DOCK.
The Washington State Ferries cannot legally subscribe to stock in a private corporation.
- - - - - - - - - - - - -
January 21, 1952
Honorable J. W. Hoover,Secretary
Washington Toll Bridge Authority
Olympia, Washington Cite as: AGO 51-53 No. 218
In your letter of January 7, 1952, you request the opinion of this office as to whether the Washington State Ferries can legally use the funds which were provided for the purchase of the ferry system or the funds contemplated for the purchase of the Colman Dock to subscribe and pay for stock in a private steam heating company to be formed in Seattle which would serve such dock.
It is our conclusion that such stock subscription may not be made.
Article XII, section 9 of the State Constitution reads as follows:
"The state shall not in any manner loan its credit, nor shall it subscribe to or be interested in the stock of any company, association or corporation."
It appears to us that such a subscription would be in direct conflict with the provision of the constitution above set forth. That being the case, it has not been necessary to consider whether such an investment would be in violation [[Orig. Op. Page 2]] of any of the provisions of the bond resolutions issued when bonds were sold for the purchase of the ferry system.
Very truly yours,
DON CARY SMITH
Assistant Attorney General