City of Portland v. Albee

135 P. 516, 67 Or. 221, 1913 Ore. LEXIS 175
CourtOregon Supreme Court
DecidedOctober 14, 1913
StatusPublished

This text of 135 P. 516 (City of Portland v. Albee) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Portland v. Albee, 135 P. 516, 67 Or. 221, 1913 Ore. LEXIS 175 (Or. 1913).

Opinion

Mr. Justice Moore

delivered the opinion of the court.

1. This is a special proceeding, instituted in this court., to compel the defendants, H. R. Albee, as mayor of the city of Portland, and A. L. Barbur, as auditor thereof, forthwith to execute to the plaintiff Henry Teal a bond of that municipality for which he had bid the par value and accrued interest, pursuant to a notice of the sale thereof, but which bond the defendants refused to execute, asserting that they were without authority to sign and deliver the obligation. An alternative writ of mandamus was issued and served upon the defendants who demurred thereto on the [224]*224ground that it did not state facts sufficient to constitute a cause of action.

It is unnecessary to set forth the facts in detail as averred in the writ, for such allegations are deemed sufficient, except in one particular to he hereinafter noted. The material facts as they appear from the writ are that on November 8, 1910, at a special city election held in Portland, Section 118 of the charter then in force (Spec. Laws Or. 1903, p. 3) was amended by creating a “department of public docks,” consisting of a commission composed of five members to be appointed by the mayor. The commission was empowered to issue and dispose of “dock bonds of the city of Portland” to an amount not exceeding $2,500,000. The commissioners, having been duly appointed, issued and sold some of these bonds, and expended the money thus obtained in making public improvements prior to May 3, 1913, when at a special election held in the city of Portland the legal voters thereof enacted a general amendment of the charter, providing for a commission form of government. The following excerpts are taken from the fundamental law of the municipality as thus amended:

“No bonds other than bonds for public -improvements payable out of assessments upon the property benefited, and sewer bonds if otherwise authorized, shall be issued unless approved by vote of the people at a general or special election at which the question shall be submitted in the same manner as other measures are submitted under the initiative or referendum. This provision shall not apply to bonds heretofore authorized”: Section 92.
“The council of the city of Portland is hereby authorized to issue and sell all additional bonds heretofore authorized and not sold under the provisions of sections 118, 118%, 227, 425% and 429 authorizing the issuance and sale of municipal garbage collection [225]*225bonds, of tbe charter of 1903, as amended; provided that the bonded indebtedness of the city of Portland shall at no time exceed the amount authorized under the provisions of section 88 of the charter of 1903 and provided further, that the bonds issued and sold under the provisions of section 383a of the charter of 1903, as amended, shall not be considered as a part of the debt limit fixed by said section 88”: Section 93.

• The section of the charter limiting the indebtedness, and to which reference has been made, reads:

“No indebtedness shall be incurred for the acquisition of any public utility under the provisions of this charter, which, together with the existing bonded indebtedness of the city, shall exceed at any one time seven per centum of the assessed value of all real and personal property in the city, but in estimating such bonded indebtedness, all bonds given for the acquisition or construction of public properties and utilities, the interest on which bonds is paid out of the earnings of said public utilities or properties, shall be excluded: Provided, that whenever and for so long as such utility or undertaking fails to produce a .sufficient revenue .to pay all costs of operation and administration (including interest on the city bonds issued therefor and the cost of insurance against loss by fire, accidents, and injuries to persons), and an annual amount sufficient to pay at or before maturity all bonds issued on account of said undertaking; all such bonds outstanding shall be included in determining the city’s power to incur indebtedness, unless the principal and interest thereof be payable exclusively from the receipts of such undertaking. The auditor shall annually report to the council, in detail, the amount of revenue from each such undertaking, and whether there is any, and if so, what, deficit in meeting the requirements above set forth”: Section 88; Spec. Laws Or. 1903, p. 41.

The power conferred upon the council by section 93 of the amended charter, “to issue and sell all addi[226]*226tional bonds heretofore authorized and not sold under the provisions of section 118,” etc., applies inter alia, as we understand from the alternative writ of mandamus, to the “dock bonds of the city of Portland” that were approved by a vote of the people at a special election held in that city November 8, 1910, a part of which municipal certificates of indebtedness for the repayment of money loaned had not been issued or sold May 3, 1913, when the amended charter was enacted. The power thus granted to dispose of additional bonds “heretofore authorized and not sold” is encumbered with the following condition: “Provided that the bonded indebtedness of the city of Portland shall at no time exceed the amount authorized under the provisions of section 88 of the charter of 1903.”

Construing in pari materia the clauses to which attention has been called, in order to give effect to each provision noted, it is believed that the legal voters of the city of Portland, in amending the charter, May 3, 1913, expressly limited the power to issue and sell additional bonds of the class specified, for any part of an authorization remaining, so that the municipal indebtedness should not exceed a stated pro rata of the material progress of the city as evidenced by the assessed value of all taxable property therein, subject, however, to certain qualifications specified in section 88 of the charter of 1903. It necessarily follows that the additional “dock bonds of the city of Portland,” heretofore authorized and not sold under the provisions of section 118 of the charter of 1903 as amended, cannot be disposed of except upon an affirmative showing that in executing such obligations the indebtedness of the city would not be augmented beyond the limit thus fixed.

The alternative writ does not state that by executing the bond to the plaintiff Teal the debt of the city [227]*227will not be increased beyond tbe limit prescribed, and, this being so, tbe facts stated are not sufficient to constitute a cause of action. Tbe demurrer to tbe writ should be sustained, and the proceeding quashed; and it is so ordered. Demurrer Sustained.

Submitted October 15, decided October 21, 1913.

On Amended Alternative "Writ.

(135 Pac. 897.)

delivered tbe opinion of tbe court.

Tbe former proceedings in tbis cause having been dismissed, an amended alternative writ of mandamus was issued, wherein it is averred that tbe execution of the dock bonds of tbe city of Portland to tbe plaintiff Teal would not increase tbe municipal indebtedness beyond tbe limit prescribed by Section 88 of tbe charter of 1903. Tbis allegation is supplemented by tbe affidavit of A. W.

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Bluebook (online)
135 P. 516, 67 Or. 221, 1913 Ore. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-portland-v-albee-or-1913.