Appleton Waterworks Co. v. City of Appleton

93 N.W. 262, 116 Wis. 363, 1903 Wisc. LEXIS 203
CourtWisconsin Supreme Court
DecidedJanuary 13, 1903
StatusPublished
Cited by6 cases

This text of 93 N.W. 262 (Appleton Waterworks Co. v. City of Appleton) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appleton Waterworks Co. v. City of Appleton, 93 N.W. 262, 116 Wis. 363, 1903 Wisc. LEXIS 203 (Wis. 1903).

Opinion

WiNsnow, J.

Tbe plaintiff is a taxpayer in tbe defendant' city, and brought tbis action in equity in February, 1902, to-perpetually restrain tbe city from issuing or negotiating municipal bonds to tbe amount of $260,000, wbicb were about [366]*366"to be issued under an ordinance then recently passed by the common council of the city, for the purpose of constructing ■waterworks in said city. The grounds upon which the injunction is sought are that the provisions of sec. 943, Stats. 1898, and ch. 348, Laws of 1899, (as amended by ch. 143, Laws of 1901), have not been complied with. A preliminary injunctional order was granted, and a motion to dissolve the same was denied by the court, and from that order the defendant appeals.

It is admitted that neither the question of the construction ■of the works, nor the question of the issuance of the bonds, has ever been submitted to a vote of the people; and the simple ■question is whether the city of Appleton can legally issue municipal bonds without such vote, or either of them. The question was argued with ability upon both sides, and it is certainly a most important one to the municipalities of the state, and one not easy of satisfactory solution. To understand it fully, a brief review of the various statutes bearing upon the subject must first be had.

The city of Appleton is a city of the third class, containing a population of 15,085, and was incorporated under a special charter, which was finally consolidated and amended by ch. 441, Laws of 1885. This act contained no provision authorizing the issuance of municipal bonds for any purpose, but, on the contrary, contained the express provision that “the common council shall not have power to issue any bonds or other evidences of debt . . . except in cases authorized by this act or some law of this state.” (Sec. 16, subch. V, ch. 441, Laws of 1885). As there was no provision in the charter authorizing the issuance of time bonds, it is plain that the city did not have power to issue the bonds in question under its special charter when the same was passed in 1885. At this time, however, there stood upon the statute books of the state secs. 942 and 943, R. S. 1878, which gave power generally to certain municipal and gwasi-municipal corporations to issue [367]*367negotiable bonds for certain purposes and under certain com ■ditions. Sec. 942 provided that “any county, town, village, •or city” might issue negotiable bonds, “under the provisions of this chapter,” for the purpose of paying for an authorized subscription to the stock or bonds of any railroad corporation, and for the following purposes:

“The purchase or erection of public buildings; the purchase ■of fire engines or any apparatus for the extinguishment of fires, the purchase or erection of pumps, water mains, reservoirs or any other waterworks; . . . the grading, macadamizing or paving of streets; the laying out, altering or widening thereof or of public grounds or parks; the purchase or improvement of cemeteries, the construction of school buildings, or in exchange for or compromise of any bonds previously issued and outstanding; provided, that the principal of such new bonds shall not exceed the principal of the •old bonds; or to accomplish any other purpose in the lawful power of such corporation.”

By the provisions of ch. 58, Laws of 1897, a slight change was made in this section, and by the revision or compilation of 1898 certain additional purposes were added to the list of purposes for which bonds might be issued, but, as neither of these amendments is material to the present question, it will not be necessary to further refer to them. Sec. 943, so far as material to this discussion, provided that:

“No bonds shall in any case be issued by any town, village or city until the proposition for their issue for the special purpose thereof shall have been submitted to the people of such municipality and adopted by a majority voting thereon.”

By the revision of 1898 there was added to sec. 943 certain provisions prescribing the manner in which the election is to be held, which provisions begin as follows:

“Unless it is otherwise provided by law no town, city or village shall issue any bonds, except to aid in the construction of a railroad, unless upon compliance with the following conditions : whenever,” etc. (Here follow specific directions as to [368]*368tbe manner of bolding tbe election, wbicb are not necessary to be stated.)

Had there been no more legislation on tbe subject, there can be no doubt of tbe proposition that tbe city of Appleton could only issue bonds for tbe purpose of building waterworks after an affirmative vote of tbe electors. Tbe situation remained unaltered until tbe passage of tbe general city charter law (ch. 326, Laws of 1889), wbicb was intended to govern all cities of tbe state thereafter created, and all cities previously created wbicb chose to adopt its provisions in tbe manner prescribed by tbe act. Sec. 133 of this act, (as amended by cb. 312, Laws of 1893, and cb. 294, Laws of 1895), provided as. follows:

“The council shall have authority to issue bonds for the following purposes only: (1) Building school bouses and for public libraries. (2) Building bridges. (3) Erecting public-buildings for tbe use of tbe city. (4) Purchase of apparatus for fire protection. (5) Street improvements wbicb are to be paid for by tbe city. (6) Waterworks, sewer, and drains, lighting works for streets and public buildings, and in cities of other than tbe first class for tbe construction and operation of lighting works to supply tbe city and its inhabitants with electric or other light. (7) Eor tbe purchase or establishment of public parks, public drives, boulevards, cemeteries, garbage grounds, public hospitals and purchasing sites for public buildings. (8) Purchase of toll bridges and approaches. (9) Refunding municipal indebtedness. (10) Such other purposes as are authorized by these statutes. No such bonds shall be issued unless authorized by an osdinance adopted by a vote in favor of tbe same of'at least three-fourths of all tbe members of the common council elect, said vote to be at a regular meeting not less than one week after tbe proposed ordinance shall have been published in tbe official paper of tbe city, and in cities with a population of less than five thousand unless such ordinance shall be ratified by a majority of the-electors of said city who shall vote at a special election called for that purpose.”

[369]*369This section is now embodied in sec. 925 — 133, Stats. 1898. It contains further provisos as to the total amount of indebtedness allowed, the form of bonds, time of payment, and levy of taxes, which are not material here. It is to he noted also, that the proviso requiring the ratification of the ordinance by popular vote in cities of less than 5,000 population was en-grafted into the section by ch. 312, Laws of 1893.

At the same time that ch. 312, Laws of 1893, was passed, amending sec. 133 aforesaid, another act was passed, known as “Chapter 311 of the Laws of 1893.” Secs. 1 and 2 of this act are as follows:

“Sec. 1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(1971)
60 Op. Att'y Gen. 523 (Wisconsin Attorney General Reports, 1971)
Flottum v. City of Cumberland
291 N.W. 777 (Wisconsin Supreme Court, 1940)
City of Eau Claire v. Eau Claire Water Co.
119 N.W. 555 (Wisconsin Supreme Court, 1909)
McGarvey v. Swan
96 P. 697 (Wyoming Supreme Court, 1908)
Smith v. City of Burlington
109 N.W. 79 (Wisconsin Supreme Court, 1906)
Connor v. City of Marshfield
107 N.W. 639 (Wisconsin Supreme Court, 1906)

Cite This Page — Counsel Stack

Bluebook (online)
93 N.W. 262, 116 Wis. 363, 1903 Wisc. LEXIS 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appleton-waterworks-co-v-city-of-appleton-wis-1903.