Caldwell v. Crosser

20 S.W.2d 822
CourtCourt of Appeals of Texas
DecidedDecember 5, 1928
DocketNo. 3120.
StatusPublished
Cited by6 cases

This text of 20 S.W.2d 822 (Caldwell v. Crosser) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caldwell v. Crosser, 20 S.W.2d 822 (Tex. Ct. App. 1928).

Opinion

JACKSON, J.

On November 1, 1926, the plaintiffs, W. A. Crosser, R. W. O’Neal, and A. Holloway, resident taxpaying voters of Cochran county, Tex.,- instituted this suit in the district court of said county against the county judge, J. D. Caldwell, the county commissioners, G. H. Matthews, T. W. Bennett, W. A. Herridge, and Lem Shipman, and the county clerk, R. H. McCaslin, all of whom were duly elected and qualified officers of Cochran county, and constituted its commissioners’ court, and Dan Moody, Attorney General of Texas, and G. E. Dunn & Co., citizens of the state of Kansas, as defendants.

The plaintiffs allege:

That the commissioners’ court of Cochran county attempted to create said county into a road district with its boundaries coextensive with the boundaries of said county.

That thereafter the commissioners’ court caused to be published in the Morton Monitor, a weekly newspaper published in Cochran county, notice of an election to be held on January 23, 1926, for the purposes of determining whether or not road bonds of said county aggregating the sum of $300,000 should be issued for the purpose of building and constructing roads in said county. That said election was held, at which the voters of the county attempted to vote said bonds and a tax for the purposes of paying the principal and interest thereon and to create a sinking fund to discharge said bonds at their maturity. That about February 1, 1926, the commissioners’ court issued Cochran county road bonds aggregating the sum of $300,000, in denominations of $1,000 each, bearing interest at the rate of 5½ per cent, per annum, and maturing annually over a period of 30 years. That on February 13, 1926, the commissioners’ court entered into a contract for the sale of said bonds to G. E. Dunn & Co. for the sum of $300,000 and accrued interest to date of delivery. That said bonds were printed in denominations of $1,000 each, signed by R. H. McCaslin, county clerk, and J. D. Caldwell, county judge, and said bonds and a transcript of the proceedings had for the issuance thereof were forwarded to Dan Moody for his approval as Attorney General of the state of Texas.

That the attempted creation of Cochran county into a road district and the subsequent election therein for the purpose of determining whether said bonds should be issued and the attempt to vote the tax to pay the interest and create a sinking fund were illegal, void, and of no force and effect, because the law does not provide for the creation of a road district out of an entire county, nor for the voting of bonds in such a district, and the *824 tax attempted to be levied on tbe property in said district by virtue of sucb election is illegal and void. ;

That, at the time tbe contract for the sale of said bonds was made, it was generally recognized that a validating act by tbe Legislature of the state of Texas would have to be passed in order to validate sucb bonds as bad been voted at tbe bond election in Cochran county, and tbe commissioners’ court, in making the pretended sale to 6. E. Dunn & Co., were not actuated by a desire to serve tbe best interests of tbe taxpayers, but were dominated by a desire to serve tbe personal interests of G. E. Dunn & Co., its agents and representatives, who were to share in tbe profits derived from tbe transaction.

That tbe contract for tbe sale .of said bonds entered into between Cochran county and G. E. Dunn & Co. is illegal , and void, for tbe reason that it is contrary to title 22, chapter 3, subdivision 1 of said title and chapter, and particularly article 736, Revised Civil Statutes 1925, because said bonds were not sold on competitive bids, and not sold to tbe highest and best bidder for cash, but were sold at less than their market value. That said contract did not provide for tbe proceeds obtained from the sale thereof to be placed in the county treasury to the credit of the available road fund, but stipulated that the proceeds of the sale should be held by the purchaser and paid in installments. That said contract is illegal and void because at the time of said pretended sale said bonds had not been issued, certified, or registered, as provided by law. That the tax levy is void because it is confiscatory and amounts to the taking of property without due process of law, in violation of the Constitutions of the state and the United States.

Plaintiffs allege:

That it is the intention of the commissioners’ court, if the bonds are approved by the Attorney General, to apply the proceeds of the sale thereof on roads so as to enhance tbe value of the property of certain individuals and further the interests of sucb individuals by building highways into and out of the town of Morton, in Cochran county, and require the traffic coming into the county to pass through the town of Morton, without regard to the best interests of the traveling public or the taxpayers, and solely to benefit the town of Morton, which is small and of no commercial importance, and consists of three or four small stores and one or two filling stations.

That, if the commissioners’ court and the Attorney General of the state are not restrained from so doing, they will proceed with the final issuance, sale, and delivery of said bonds to G. E. Dunn & Co., and the proceeds thereof will be illegally spent and squandered.

The plaintiffs pray that on a final hearing the creation of said road district and the bond election be declared void, and the commissioners' court be restrained from any further attempt to have said bonds approved by the Attorney General of the state of Texas, and that said injunction be made permanent.

On April 10, 1928, J. L. Caldwell, W. E. Smart, L. H. Plain, Morton J. Smith, W. A. Turner, Citizens’ National Bank, Neches Finance Company, Berger Manufacturing Company, Clem Bros., Jewell Brown, J. A. Hodges, Barrier Bros., G. E. Lockhart, Tom Garrard, H. T. Stewart, Cliff Goodnight, Ralph Goodnight, Thompson drug store, and the Super Service Station, with the permission of the court, intervened in said suit.

The interveners' allege that on December 19, 1925, a petition, signed by the required number of qualified property taxpaying vot- ■ ers of Cochran county, was presented to the commissioners’ court of said county, praying for an election to be ordered throughout the county to determine whether or not the county should issue bonds, for the purpose of constructing, maintaining, and operating macadamized, graveled and paved roads and turnpikes, or in aid thereof, in the amount of $300,000, bearing interest at the rate of 5½ per cent, per annum; levy a tax to pay said interest as it accrued; and create a sinking fund to discharge said bonds at their maturity, the time of which was to be fixed by the commissioners’ court not to exceed 30 years from the date of the bonds.

The interveners sufficiently allege:

That in compliance with said petition the commissioners ordered an election to be held on January 23, 1926, and gave proper and legal notice thereof. That the election was regularly held and carried by a two-thirds vote of the property taxpaying voters.

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Bluebook (online)
20 S.W.2d 822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caldwell-v-crosser-texapp-1928.