Colburn v. McDonald

100 N.W. 961, 72 Neb. 431, 1904 Neb. LEXIS 214
CourtNebraska Supreme Court
DecidedOctober 5, 1904
DocketNo. 13,444
StatusPublished
Cited by2 cases

This text of 100 N.W. 961 (Colburn v. McDonald) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colburn v. McDonald, 100 N.W. 961, 72 Neb. 431, 1904 Neb. LEXIS 214 (Neb. 1904).

Opinion

Barnes, J.

This case comes before us strictly under the provisions of chapter 8 of the laws of 1899, found in chapter 9 of the Compiled Statutes of 1903 (Annotated Statutes, 10780). It appears that on the 28th day of November, 1871, the county of Lancaster voted bonds to the amount of 8100,000 to aid in the construction, extension and completion of the Midland Pacific Railway from the city of Lincoln to a junction with the Union Pacific Railroad. The bonds were dated January 1, 1873, and were delivered to the railroad company at about that time. The company in turn de[433]*433livered $100,000 of its stock to tlie county board, which was retained until November 2, 1881, when the same was sold and the money covered into the county treasury. Interest was paid on these bonds continuously until January, 1885, at the rate of 10 per cent, per annum. In August of that year one Charles E. Lewis commenced a suit against the county in the circuit court of the United States for the district of Nebraska on a large amount of these bonds. The county board filed its answer, and the issues were made up, the question involved being the validity of the bonds. On the 22d day of April, 1886, and before the trial, the county and Lewis compromised the suit; all of the bonds were called in and stamped as bearing only 5! per cent, interest, instead of 10 per cent., the rate at which they were issued, and thereupon the case was dismissed. Fi*om that time until the first day of January, 1903, the date when the bonds became due, the interest was regularly paid at the new rate agreed upon when the suit above mentioned was compromised and dismissed. Shortly after the bonds became due, there being no funds in the treasury for their payment, the county undertook to refund them under the provisions of the act above'mentioned. Notice was published in the manner provided by law, and on the day appointed therein, one Thomas Colburn, a resident and taxpayer of Lancaster county, filed his protest and objections with the county board, by which he sought to' prevent its proposed action. The county attorney thereafter made out and filed with the clerk of the district court for Lancaster county, a statement containing a complete history of the bond transaction in question, which showed the payments and the amount due on said bonds. Thereupon, one J. IV. McDonald, a holder of one of the bonds, intervened, and at the first session of the district court thereafter that tribunal made a finding in which it was stated that the bonds were a valid obligation against the county of Lancaster, and that there was due thereon the sum of $98,000. From that finding Colburn, the protestan!, has appealed to this court.

[434]*434It is contended on behalf of the intervener, McDonald,that no appeal lies in these proceedings, and that therefore this court has no jurisdiction; and it is insisted that the question is determined by Nebraska Loan & Trust Co. v. Lincoln & B. H. R. Co., 53 Neb. 246. It is apparent, however, that the cases are distinguishable. The statute under consideration here authorizes an appeal to the supreme court from a decision of the district court, and provides the manner of taking such appeal. Notice thereof must be given at the time of the decision, and within 20 days the party appealing must give a bond in the sum to be fixed by the court; and the statute (sec. 39, ch. 9, Compiled Statutes, 1903,- Annotated Statutes, 10781), then says: “If appeal in the foregoing manner is taken it shall stay proceedings on the part of such corporate authorities until such appeal is decided.” So that the statute itself discloses the sense in which the word “appeal” is used. It appears that this statute has been compiled with, and that this court has jurisdiction to determine the questions presented herein.

It will be observed that this is neither an action at law nor a suit in equity, but is a special proceeding provided for by the terms of the refunding act above mentioned. Therefore our jurisdiction and all our powers herein are conferred and measured by the terms of the act itself, The county board is a proper party to this proceeding, and the protestant, together with the intervener, McDonald, are before the court. This gives us the power to examine the questions involved in this proceeding, and our judgment herein will be binding upon the parties to the record. We will therefore proceed to determine the questions involved in this controversy as to such parties without attempting to adjudicate the rights of those bondholders who are not parties to the record.

It is contended that the act of 1869 (laws 1869, p. 92), under the provisions of which the bonds in question were issued, was never legally or constitutionally passed by the legislature, and is therefore void. To support this con[435]*435tention an abstract of the house and senate journals relating to the passage of that act is put in evidence. This copy or abstract fails to show in perfect form or order each successive step which occurred in the passage of the act, and in describing the bill its title was not always referred to in exactly the same language; but the journals do not show that the act, in the precise form in Avhich it Avas signed by the chief officers of the house and senate and approved by the governor, Avas not passed. We think that it has finally become the settled law of this state that the enrolled bill signed by the officers of both houses and approved by the governor, as found in the office of secretary of state, is prima facie evidence of its due enactment. It is true that the legislative journals may he looked into for the purpose of ascertaining Avhether the law Avas properly enacted, but the silence of these journals is not conclusive evidence of the nonexistence of a fact which ought to be recorded therein regarding the enactment of a law. “Every presumption is in favor of the regularity of legislative proceedings; and it is rather to be inferred that the journals are imperfect records of Avhat was done than that the legislature failed to perform the more solemn and important duties enjoined upon it by the constitution.” So it must be made to affirmatively appear by the journals that the act in question did not pass. To hold otherwise Avould be to permit a mute Avitness to prevail over the prim a. facie case made by the bill itself. State v. Frank, 60 Neb. 327. The evidence introduced by the protestant being insufficient to shoAV affirmatively that the act in question was not regularly and constitutionally passed by the legislature, this contention must fail.

It is next claimed that the act of 1899, under which this proceeding is prosecuted, was not constitutionally passed, and is therefore void. Answering this contention, we may say that the evidence introduced to support it is of the same kind and nature and of no more binding force than that introduced in relation to the passage of the act of 1869. It does not affirmatively show that the act was not [436]*436regularly and constitutionally passed, and the holding on this question must follow the rule announced above.

It is further claimed that the fact that the proposition on which the bonds in question were voted authorized the county to receive $100,000 of the stock of the Midland Pacific Railway at the time of the delivery of the bonds rendered them void.

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Related

State ex rel. Oldham v. Dean
121 N.W. 719 (Nebraska Supreme Court, 1909)
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110 N.W. 761 (Nebraska Supreme Court, 1906)

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Bluebook (online)
100 N.W. 961, 72 Neb. 431, 1904 Neb. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colburn-v-mcdonald-neb-1904.