City of Beaumont v. Sam's Loan Office, Inc.

31 S.W.2d 882
CourtCourt of Appeals of Texas
DecidedAugust 13, 1930
DocketNo. 1962.
StatusPublished
Cited by2 cases

This text of 31 S.W.2d 882 (City of Beaumont v. Sam's Loan Office, Inc.) 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
City of Beaumont v. Sam's Loan Office, Inc., 31 S.W.2d 882 (Tex. Ct. App. 1930).

Opinion

HIGHTOWER, C. J.

This is an appeal from a final judgment of the Fifty-Eighth district court of Jefferson county, holding unconstitutional an ordinance regularly passed by the city commission of the city of Beaumont, regulating auction sales within the city of Beaumont and prescribing a license fee of $5 per day for the privilege of holding auction sales and a penalty of $200 per day for violating the provisions of the ordinance. The judgment was upon appellee’s petition, which attacked the ordinance upon the following propositions:

First. The city of Beaumont had no power to pass an ordinance regulating auction sales. Second. While denominating the fee for conducting an auction sale a license fee, it was in fact an occupation tax, and the amount charged was unlawful because more than one-half the occupation tax charged by the state for the same occupation. Third. The ordinance was an unreasonable discrimination, in that it imposed upon persons engaged in the sale of'the articles mentioned in the ordinance an unreasonable license fee and unreasonable details, in that they were required to file a bond and inventory their merchandise, etc. Fourth. The ordinance was void because it conferred upon the city assessor and collector of taxes the power to withhold or grant the license and the power to determine the right of an applicant to a license. Fifth. The penalty of $200 a day for violation of the ordinance was unreasonable and' in conflict with the general laws of the state. Sixth. The ordinance was void because it conferred upon the judge of the corporation court power to revoke the license upon the conviction of the holder of the license of violating any of the provisions of the ordinance. Seventh. The ordinance was unreasonable and oppressive, and designed not to regulate auction sales, but to prohibit them. Eighth. The ordinance violated article 1, § 19, of the Constitution of the state of Texas and the Fourteenth Amendment to the Constitution of the United States, in that it deprived the persons conducting auction sales of property and privileges without due process of law and conferred upon the city assessor and collector of taxes the power to grant or withhold the license and conferred upon the judge of the corporation court power to revoke the license.

Appellant answered by general demurrer and by prayer for dissolution of the temporary injunction that had been granted appel-lee, restraining appellant from enforcing the ordinance, and further, by way of cross-action, prayed for judgment against appellee for the license fee due by it for operating auction sales without complying with the provisions of the ordinance. This ordinance was as follows:

“An ordinance licensing and regulating the sale at public auction of jewelry, diamonds and other precious or semi-precious stones, watches, clocks, pictures, paintings, bric-a-brac or such like articles, and prescribing a penalty and providing for an emergency, and repealing all ordinances or parts of ordinances in conflict herewith.
“Whereas, on account of the general complaint which has grown out' of the practices of •unregulated auctions and auctioneers of the hereinafter described kind or character of goods and the great amount of imposition made upon the public by misrepresentation and practices of deceit and fraud growing out of unregulated and irresponsible auctioneers and auctions, it is deemed advisable by the City Commission to pass suitable regulations governing the same so as to secure honesty and fair dealing and avoid such evil pra'etices that have *884 grown up on account of the want of proper regulations, now, therefore,
“Be it ordained by the city commission of the city of Beaumont
“Section 1. That it shall hereafter he unlawful for any person, firm or corporation to sell, dispose of or offer for sale in the City of Beaumont, at a public auction, or cause or permit to he sold, disposed of or offered for sale at a public auction within the City of Beaumont, jewelry, diamonds, or other precious or semi-precious stones, watches, clocks, gold or silverware, or plated ware, stationery, glassware, porcelain, bric-a-brac, or like articles, whether the same shall be their own property or whether the sale of same shall be by and through agents or employees • or others, without first complying with the provisions of this ordinance and obtaining a license from the Assessor and Collector of Taxes of the City of Beaumont, and making an application therefor as herein provided ; provided, however, that this section shall not apply to judicial sale or sales made by executors or administrators, nor to sales made by or in behalf of licensed pawnbrokers of unredeemed pledges, which are made in the manner provided by law.”

The remaining provisions are summarized as follows by appellant in its brief filed herein:

“Section 2 provides that any person desiring to hold an auction for the sale of such articles shall make an application to the Collector of Taxes containing the period of days he desires to hold the auction, and provides that the Assessor and Collector of Taxes shall issue to any such person a license upon his complying with the terms of 'the ordinance, providing no license shall be issued for a longer time than one year.
“Section 3 provides that the application for a license shall be in writing and sworn to, shall state the name of the applicant, his residence, the street and number of the proposed place of sale, the length of time a - license is desired, and if the applicant has been previously engaged in like or similar business, he shall designate the place where the sale was conducted and to fur-nisli the Assessor and Collector such information as may be necessary to establish the truth of the statements, and the right of the applicant to the license.
“.Section 4 provides that such application shall ■have attached to it a sworn inventory of such stock of merchandise setting out the quality, quantity, kind or grade of each item and invoice cost thereof, to which shall he attached an affidavit that such inventory is in all respects true and correct. It further provides that said application shall be kept on file as a part of ■ the public records, pertaining to the sale and that no merchandise shall he sold except that included in the inventory, and further that if any extension for the time for holding the auction sale is desired, similar application shall be made and ‘shall be granted by the Assessor and Collector of Taxes’ provided that if any articles are added to the list, the applicant shall furnish additional bond.
“Section 5 provides that before the license shall be issued, the party applying therefor shall tender a bond to the City of Beaumont in the sum of $1,000.00 made payable to the City, to be approved by the Direc- • tor of Finance of the City of Beaumont, conditioned that the applicant ‘shall pay all losses and damages which may lawfully be claimed against him on any material suppression 'of facts concerning the merchandise to .be auctioned at such sale, or which may grow out of the violation of any of the terms of this ordinance.

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Related

Cabell's, Incorporated v. City of Nacogdoches
288 S.W.2d 154 (Court of Appeals of Texas, 1956)
Sam's Loan Office, Inc. v. City of Beaumont
49 S.W.2d 1089 (Texas Commission of Appeals, 1932)

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31 S.W.2d 882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-beaumont-v-sams-loan-office-inc-texapp-1930.