Berlin Iron Bridge Co. v. City of San Antonio

62 F. 882, 1894 U.S. App. LEXIS 2930
U.S. Circuit Court for the District of Western Texas·Decided May 19, 1894·No. No. 522·Published·Cited by 7 cases

Opinion

MAXEY, District Judge.

My conclusions upon the questions arising on demurrer are as follows:

[888]*8881. The contract entered into between the plaintiff and defendant on the 12th day of ¡November, 1890, for the erection of the superstructure of a wrought-iron bridge across the San Antonio river, is invalid, as being in contravention of the plain provisions of the constitution. The contract price of the superstructure was $13,000, one-half to be paid on the delivery of the iron material at the site of the bridge on Crockett street, and the remainder on the completion and acceptance of the bridge, which was on the 23d day of June, 1892. At the time of the execution of the contract, no provision was made for the assessment and collection of a tax to pay the interest on the debt thus created, and provide a sinking fund, as required by the organic law. Section 5 of article 11 of the state constitution provides that:

“No debt shall ever at any time be created by any city, unless at the same time provision be made to assess and collect annually a sufficient sum to pay the interest thereon, and to create a sin King fund of at least 2 per cent, thereon.”

Section 7 of the same article contains the more emphatic declaration:

“But no debt for any purpose shall ever be incurred in any manner by any city or county, unless provision is made at the time of creating the same for levying and collecting a sufficient tax to pay the interest thereon, and to provide at least two per cent, as a sinking fund.”

It is said by Justice Gaines in City of Terrell v. Dessaint, 71 Tex. 773, 9 S. W. 593, that:

“The language, is general and unqualified, and we find nothing in the context to indicate that the framers of the constitution did not mean precisely what is said; that is, that no city should create any debt without providing, by taxation, for the payment of the sinking fund and interest.”

See, also, Biddle v. City of Terrell, 82 Tex. 335, 18 S. W. 691.

The same may be said of the case now before the court. But the plaintiff, by its counsel, insist|i that it was not necessary for the city to provide for the payment of interest and the creation of a sinking fund, in reference to the debt in question, because it is averred that bridge bonds had been sold by the city, and the proceeds thereof placed in the city treasury, to secure the erection of the bridge which the plaintiff contracted to build. It is true that section 43 of the charter of the city authorizes the city to borrow money on its credit, and issue bonds therefor, to an amount not to exceed $50,000, for street improvements, and it is further provided by said section as fqllows:

“That no debt shall be contracted, for the payment whereof such bonds are issued (except the side-walks bonds) until such bonds shall have been disposed of, and the proceeds thereof paid into the city treasury, and when any bonds are issued by the city, a fund shall be provided to pay the interest and two per cent, per annum on the principal as a sinking fund to redeem the bonds, which fund shall not be diverted or drawn for any other purpose, and the city treasurer shall honor no draft drawn on said fund except to pay the interest or to redeem the bonds for which it was provided; and for the payment of such loan to levy a special tax over and above the general tax allowed, by this act.”

[889] Without considering the question whether the issuance of bonds denominated “bridge bonds,” would be a compliance with the charter provision authorizing the issuance of “street improvement bonds,” it is sufficient to say that by the imperative mandate of the constitution, which rises superior to all charter provisions, “no debt” shall be created by any city except in the manner therein indicated. The method of creating debts, pointed out by the constitution, should be followed; otherwise, the debts are invalid, and not enforceable against the municipality. Where the meaning of constitutional provisions is plain and obvious, it is the duty of courts to give effect, to such meaning, without placing upon the words used a forced construction, and one not intended by the framers of the instrument. I pon 1his point it is said by Justice Lamar in the case of Lake Co. v. Rollins, 130 U. S. 670, 671. 9 Sup. Ct. 651, that:

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Berlin Iron Bridge Co. v. City of San Antonio, 62 F. 882, 1894 U.S. App. LEXIS 2930 (circtwdtex 1894).

62 F. 882 (Berlin Iron Bridge Co. v. City of San Antonio) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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