Gage v. City of Chicago

74 N.E. 726, 216 Ill. 107
CourtIllinois Supreme Court
DecidedJune 23, 1905
StatusPublished
Cited by7 cases

This text of 74 N.E. 726 (Gage v. City of Chicago) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gage v. City of Chicago, 74 N.E. 726, 216 Ill. 107 (Ill. 1905).

Opinion

Mr. Justice Boggs

delivered the opinion of the court:

This is an appeal from the judgment of the county court of Cook county confirming a special assessment levied to defray the cost of paving Coles avenue, in the city of Chicago. The appellants appeared and filed objections, all of which were overruled and judgment was entered confirming the assessment, to reverse which this appeal has been perfected.

The ordinance was adopted June 27, 1904. The assessment was divided into five installments, and the ordinance contained the following provision, being section 5 thereof: “And for the purpose of anticipating the collection of the installments of said assessments for said improvement, bonds shall be issued payable out of said installments, bearing interest at the rate of five percentum per annum, payable annually, and signed by the mayor and by the president of the board of local improvements, countersigned by the city comptroller and attested by the city cleric under the corporate seal of the city of Chicago. Said bonds shall be issued in accordance with and shall in all respects conform to the provisions of the act of the General Assembly of the State of Illinois entitled ‘An act concerning local improvements/ approved June 14, A. D. 1897, and the amendments thereto.”

It is insisted this section of the ordinance is invalid for two reasons: First, because, as appellants construe the section, it requires bonds to be issued payable out of the first installriient, in violation of section 86 of the Local Improvement act, which provides that bonds shall be issued payable only out of the “second and succeeding installments;” and second, because it, as does the statute on which it is based, arbitrarily fixes the rate of interest at five per cent per annum, thereby, it is argued, preventing the city, as the representative of the owners of the property assessed, from contracting for a lower rate of interest.

We do not construe section 5 of the ordinance to require or authorize the issuance of bonds payable out of the first installment. The declaration in the opening sentence of the section, that “for the purpose of anticipating the collection of the installments of said assessments for said improvement, bonds shall be issued payable out of said installments,” must be considered and given effect in connection with the closing sentence of the section, which declares that such bonds “shall be issued in accordance with and shall in all respects conform to the provisions of ‘An act concerning local improve-meats,’ approved June 14, A. D. 1897, and the amendments thereto.” The different parts of the section so considered in connection do not authorize the issuance of bonds in violation of the provisions of section 86 of the Local Improvement act, but only in accordance therewith and in conformity thereto. Section 86, being the section which provides for the issuing of bonds and constitutes the authority therefor, authorizes bonds to be issued to anticipate the “second and succeeding installments” only, and section 5 of the ordinance, correctly construed, is in harmony therewith. The burden of appellants’ taxation would be in nowise increased by the issuance of interest-bearing bonds in anticipation of the first installment, for the reason that interest accrues at five per cent per annum on the first installment, though bonds be not issued thereon. Section 42 of the Local Improvement act of 1897, (4 Starr & Cur. Stat. p. 175,) which provided “that all installments, except .the first, shall bear interest,” etc., was in this respect amended by the act approved May 14, 1903, (5 Starr & Cur. Stat. p. 76; Laws of 1903, p. 102;) so as to read, “all installments shall bear interest at the rate of five per cent per annum,” etc.

The argument in support of the second proposition is, that the act of the legislature arbitrarily fixing the rate of interest on the installments, and also on the bonds, at five percentum per annum interferes with and denies to the city, as the representative of the property owners, the right to make its own contracts, and is unconstitutional because it interferes with the freedom of the citizens and with their constitutional right to make their own contracts, guaranteed to them by the constitution. The purpose of the legislation authorizing the division of an assessment into installments payable in the future is to secure to the property owner an extension of time in which to pay the assessment. The property holder has no fundamental or constitutional right to have the payment of the benefits conferred on his property by the improvement deferred until a future period. It was entirely for the determination of the legislature' whether such privileges should be secured for the property owner. The earlier statutes of the State contain no provision for the division of the special assessments into installments. - In legislating to confer this right or privilege the law-making body was not dealing with any fundamental or constitutional right of the tax-payer, and could lawfully, in providing for the extension of the time of payment, arrange for the payment of interest at a specified rate. (Hulbert v. City of Chicago, 213 Ill. 452.) Whether a fixed rate should be specified or a maximum rate per cent which should not be exceeded be named, was for the consideration and determination of the legislature. The legislation does not infringe the personal right of any property holder by compelling him to pay interest absolutely, but said section 42, as adopted in 1897 and as amended in 1903, provides that any person may at any time pay the whole assessment against his property or may pay any installment thereof, and thus the payment of interest may be wholly avoided or avoided in part, as the property owner may elect. Village of Wilmette v. People ex rel. 214 Ill. 107.

Among other objections filed by the appellants, it was urged that a prior petition, recommendation, estimate and ordinance for the same improvement of the same street and having the same termini on that street were pending at the time of the institution of this proceeding and at the time of filing the objections. The city, after the filing of the objections, dismissed the prior proceeding and produced a certified copy of the order of the court wherein it was instituted, showing final discontinuance thereof. The court ruled the dismissal of the prior proceeding avoided the objection that a former action was pending, and declined to dismiss this proceeding but proceeded to final judgment, and this is urged as for error. Appellants refer to the ancient rule of common law pleading that a plea of another suit pending, if proven, abates the second action, and counsel for the city cite the later holdings, and what seems to be the current of modern authority, that the dismissal of the prior action, even after the plea, avoids the abatement of the second suit. The statute has provided what is intended to be a complete code governing a proceeding for making a local improvement by special assessments on the property benefited, and the rules o-f common law pleading are applicable only in the event and to the extent there is an omission in the statute of some regulation or manner of proceeding. We do not think the common law rules of pleading can be resorted to to determine as to the manner of raising the defense of another suit pending. If such rules be applicable, the appellants would be confronted with the rule that in pleas in abatement of the action “correctness of form is matter of substance and defect of form is fatal,” (1 Ency. of Pl. & Pr.

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Bluebook (online)
74 N.E. 726, 216 Ill. 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gage-v-city-of-chicago-ill-1905.