City of Winston v. Wachovia Bank & Trust Co.

74 S.E. 611, 158 N.C. 512, 1912 N.C. LEXIS 78
Supreme Court of North Carolina·Decided April 10, 1912·Published·Cited by 15 cases

Opinion

HoKE, J.,

after stating tbe ease: Tbe charter of tbe city of Winston, chapter 12, sec. 46, Private Laws 1909, conferred upon its government, on approval of tbe popular vote, tbe power to incur indebtedness and to issue bonds therefor, in terms as follows:

“That for tbe purpose of improving streets and sidewalks, purchasing, establishing, equipping, extending, or maintaining waterworks, sewerage, gas plant, electric light or power plant, public schools, or for any public improvement, or to fund or *514 pay any bonded debt now existing, on or before tbe date wben same shall fall due, tbe board of aldermen is hereby authorized and empowered to create a public debt and issue bonds therefor, under the following provisions:. That an ordinance specifying the purpose of the debt, the amount thereof, the time when same shall fall due, and such other provisions the board may adopt, shall be passed by a three-fourths vote of the entire board at •two separate regular meetings, submitting the question of creating a debt to the vote of the people, with such regulations and rules governing such voting as the board of aldermen may prescribe, and the said debt shall become a valid obligation, and bonds may be issued in accordance with the ordinance if the same is approved by the vote of a majority of the qualified registered voters having voted in favor thereof; that the board may order a new registration whenever such question is submitted to the voters. . . .” By an amendment in 1911, the words “hospital or hospitals” were added, ás one of the purposes to be inserted in the original act, just after the words “public schools.”

Undertaking to exercise the power thus conferred, the board of aldermen, by the required majority and at two separate regular meetings, passed an ordinance providing: “That an election be held in the three wards of the city of Winston, on Tuesday, the 8th day of August, 1911, at which said election the qualified registered voters of the said city of Winston shall be allowed to vote upon the question of creating an indebtedness of $350,000; of which sum the amount of $75,000 shall be for permanent improvements to streets and sidewalks; the amount of $85,000 shall be for increasing the sewerage facilities; »the amount of $40,000 shall be for the extension of water mains and improvements in the waterworks system; and the amount of $60,000 shall be for the erection and equipment of additional public school buildings; and the amount of $90,000 for improved and larger hospital facilities in the city of Winston and the acquisition, by purchase or otherwise, of a site and the erection and equipment of a hospital; and it is further ordained, that the mayor and board of aldermen be authorized to prepare, issue, and sell bonds to the amount of $350,000 as aforesaid; the proceeds to be used for the purposes and in the amounts herein *515 named. . , . The said bonds shall be sold and delivered as the necessities of the work and improvements and payments authorized may require.” The ordinance then made certain regulations as to the time, place, and methods o.f conducting the election,' the giving of proper notice, etc., and concluded as follows: “The secretary and treasurer of the city shall provide and furnish the necessary ballots for each ward, and these ballots shall be of the uniform size and color, to be selected by the secretary and treasurer; and those who vote at the election, if in favor of the issuance of said bonds and the creating of the indebtedness, shall vote a ticket with the word 'Approved’ written or printed thereon; and those opposed to the proposition shall vote a ticket with the words 'Not Approved’ written or printed thereon.”

That pursuant to the ordinance and its requirements,' an election was 'held and the proposition to incur the indebtedness for the different purposes specified was approved by the voters with practical unanimity, there being only ten votes cast against the measure. The ballot used was single, with the words “Approved” or “Not Approved” printed thereon, and was taken on the proposition as an entirety, as directed by the ordinance; that under authority vested in them by these different proceedings, the board of aldermen, by resolution duly passed at a meeting in September, 1911, ■ determined on issuing bonds to the amount of $160,000, the proceeds to be used for “the following purposes and none other, to wit: $60,000 for the erection and equipment of additional school buildings; $20,000 for the extension of water mains and improvements in the waterworks system; $42,500 for increasing the sewerage facilities; $37,500 for permanent improvements to streets and sidewalks; all making a total of $160,000 par value of bonds”; and, having bargained said bonds at par to defendant and tendered the same, payment was refused, defendant contending that the bonds are invalid.

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City of Winston v. Wachovia Bank & Trust Co., 74 S.E. 611, 158 N.C. 512, 1912 N.C. LEXIS 78 (N.C. 1912).

74 S.E. 611 (City of Winston v. Wachovia Bank & Trust Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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