Burnham v. City of Milwaukee

73 N.W. 1018, 98 Wis. 128, 1897 Wisc. LEXIS 124
CourtWisconsin Supreme Court
DecidedDecember 10, 1897
StatusPublished
Cited by42 cases

This text of 73 N.W. 1018 (Burnham v. City of Milwaukee) 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
Burnham v. City of Milwaukee, 73 N.W. 1018, 98 Wis. 128, 1897 Wisc. LEXIS 124 (Wis. 1897).

Opinions

Winslow, J.

This is an action in equity brought by a •citizen and taxpayer of the city of Milwaukee to restrain the •city from issuing $120,000 worth of corporate bonds for the purpose of building and equipping a garbage reduction plant, under the provisions of ch. 288, Laws of 1897, as amended by ch. 380, Laws of 1897. It wiil be unnecessary to state the pleadings, as the questions on which the case turns can be briefly stated. The plaintiff’s principal claims were: (1) That the city had already exceeded its constitutional limit of indebtedness; and (2) that the act authorizing the issue of the bonds was special legislation, and hence unconstitutional, under the provisions of subd. 9, sec. 31, art. IY, Const., which prohibits the passage of any special law for u incorporating any city, town or village, or to amend the charter thereof.” Upon motion of the plaintiff, judgment perpetually enjoining the city from issuing the bonds was [130]*130rendered upon the complaint and answer, and the city appeals.

1. Does the corporate indebtedness already exceed five per cent, of its taxable property? The answer to this question depends upon the px-oper legal construction of certain contracts for the purchase of lands for public parks entered into by the city during the years 1890 and 1891, under the provisions of sec. 13, ch. 488, Laws of 1889, and sec. 8, ch. 179, Laws of 1891. There are fifteen of these park contracts. The city is in possession of the lands named in these con-ti’acts, and is improving the same. There have already been paid large sums of money upon the contracts, and there yet remain to be paid more than $600,000, before the entire purchase price of the lands will be paid. If this amount is an indebtedness of the city, then its constitutional limit of indebtedness (Const, art. XI, sec. 3) has already been exceeded; otherwise not. Both of the laws under which these purchases of park lands were made grant the city power to purchase lands upon credit, and then provide that “for that purpose the proper officers of said city may execute and deliver to the vendor of such land or property purchased, an instrument creating a lien thereon . . . for such purchase money, without creating any corporate liabilities therefor, to secure the whole or any part of the price in instalments,” etc. Laws of 1889, ch, 488, sec. 13, and Laws of 1891, ch. 179, sec. 8.

Certain of these very contracts were before this court for construction in the cases of Perrigo v. Milwaukee, 92 Wis. 236, and Milwaukee v. Milwaukee Co. 95 Wis. 424, and the substance of the contracts will be found stated in those cases. In the first of these cases the question was whether such a contract, in the hands of the vendor of the land, was personal property, so as to be subject to taxation, or, in other words, whether it was a debt due or to become due or an [131]*131effect; and it was said by the present chief justice in the opinion: “Does this optional agreement held by the city create a debt against the city and in favor of the Perrigos? Certainly not, since, as indicated, it expressly provides that the city shall not thereby be made liable in any manner or form. . . . But the Perrigos are not creditors having a right to an indebtedness against the city which they can enforce by action or otherwise. The further payment by the city of any portion of the purchase price or interest or taxes is entirely optional with the city.” Thus it appears to have been distinctly held in that case, after full argument, that the instalments to come due in the future upon such contracts were not debts due from the city to the vendors, but that it was optional with the city whether it would pay them or not.

The question arose again, in a somewhat different form, in the subsequent case of Milwaukee v. Milwaukee Co. 95 Wis. 424. Part of this property, at least, was outside of the city limits, and the question arose whether it was exempt from taxation by the county because it was owned by the city. In this case it was held that the legal title to the land was in the vendors, and that the city simply had an option to purchase the same, with the right of possession until default, and that the city was not bound to pay the purchase money; thus distinguishing the case from that of a vendee in possession of lands under a contract binding him to pay the purchase money. Thus it will be seen that the very question whether the future instalments coming due upon these contracts constituted debts or obligations on the part of the city arose distinctly in each of these cases, and was in each case distinctly decided adversely to the plaintiff’s contention.

It was very ably contended on behalf of the plaintiff upon the argument that the question arises differently now, and that the decisions in those earlier cases are not necessarily [132]*132coatrolling in this case; that in those cases the question was one of construction of the laws regulating taxation, while now the question concerns the interpretation of an important clause of the constitution. It is said that these contracts constitute simply a scheme on the part of the parties to evade the constitutional limitation upon municipal indebtedness, and that such a scheme should not be allowed to succeed; that even if there be no debt created by these contracts, in the ordinary signification of the term, still there is such an inchoate obligation that manifestly the city, from mere prudential reasons, will feel bound to make the payments in order to save the property; and thus that the very abuse which the constitution aims to prevent is successfully perpetrated.

We are not unmindful of the weight and persuasiveness of these considerations. Probably there is little chance for a difference of opinion as to the policy of such legislation or of such contracts as those before us; but we cannot twist nor enlarge language in a statute, or even in the constitution, which has a definite and certain legal meaning, even to accomplish laudable results. There is no doubt of the meaning of the word “ debt ” as used in the law. It means something owed; ” money due or to become due upon express or implied agreement.” 1 Bouv. Law Diet. tit. “ Debt.” It denotes, not only an obligation of the debtor to pay, but the right of the creditor to -receive and enforce payment. Board of Comm’rs of Monroe Co v. Harrell (Ind. Sup.), 46 N. E. Rep. 124. Under the-constitution as well as under the law of taxation, the question is, Is the city indebted? Is.it under obligation to pay to some one the balance of the purchase price of.these lands? It will not do to say that it will probably make the payments, or that it would be foolish not to do so, but we must be able to say that it has - contracted, either expressly or impliedly, to do so. This is precisely the same question which arose in the [133]*133other cases above referred to, and in which we decided-that there was no debt or legal obligation, and it would seem like juggling with plain words to say now that there is - a debt or legal obligation.

We are cited to cases holding, in effect, that a borrowing of money upon a pledge of existing public property, or a charge upon the public revenue, constitutes a debt, -within the meaning of such an inhibition as the one here involved, although no promise of payment is in terms made. Baltimore v. Gill, 31 Md. 375; Newell v. People ex rel. Phelps, 71 N. Y. 9-87.

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Bluebook (online)
73 N.W. 1018, 98 Wis. 128, 1897 Wisc. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burnham-v-city-of-milwaukee-wis-1897.