Link v. Karb

89 Ohio St. (N.S.) 326
CourtOhio Supreme Court
DecidedFebruary 3, 1914
DocketNo. 14419
StatusPublished

This text of 89 Ohio St. (N.S.) 326 (Link v. Karb) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Link v. Karb, 89 Ohio St. (N.S.) 326 (Ohio 1914).

Opinions

Donahue, J.

The question raised by- the demurrer to the supplemental petition involves the effect of Section 11, Article XII of the Constitution, adopted on the 3d day of September, 1912, and which came into operation and effect January 1, 1913, upon the right of the city to issue these bonds in accordance with the provisions of ordinance No. 26,594, passed June 17, 1912, and that question will be considered first.

The resolution providing for submitting the question of issuing and selling these bonds, for the purpose named and in the amount named, to the qualified electors of the city of Columbus, was adopted by the city council of the city of Columbus on the 21st day of December, 1911.

On the 21st day of May, 1912, this question was submitted to the electors of the city, and there were cast at this election on the proposition in favor of issuing these bonds 14,193 votes and against the proposition 6,105 votes.

On the. 17th day of June, 1912, the city council of the city of Columbus, in accordance with the provisions of the original resolution and the vote of the electors on the proposition of issuing bonds, passed ordinance No. 26,594, authorizing an issue of bonds in the sum of $700,000 for the [332]*332purpose of. raising funds to pay the city’s portion of the cost of eliminating certain grade crossings named in the ordinance and resolution, in the denomination of $1,000 each and numbered from one to seven hundred, inclusive, beariñg interest at the rate , of 4 per cent, .per annum, payable semi-annually on the first days of March and September of each year, and directed the committee of finance of council to prepare, execute and sell these bonds and deposit the moneys arising therefrom in a fund to be known as “grade crossing elimination fund No. 3,” authorizing- and directing the director of public service to enter into any necessary contracts to carry out the purpose of the ordinance, and to issue his requisition upon the auditor against the fund so created to pay the consideration for the same.

On the. 3d day of August, 1912, the original petition of plaintiff was filed. Section 11 of Article XII of the Constitution went into effect on the 1st day of January, 1913. That section reads as follows: “No bonded indebtedness of the state, or any political subdivisions' thereof, shall be incurred or renewed, unless, in the legislation under which such indebtedness is incurred or renewed, provision is made for the levying and collecting annually by taxation of an amount sufficient to pay the interest on said bonds, and to provide a sinking .fund for their final redemption at maturity.”

These bonds had not in fact been issued on the first day of January, 1913, and therefore, under the provisions of Section 3950, General Code, no indebtedness was yet created nor could be created [333]*333until the delivery of the bonds under the contract of sale. This constitutional provision, however ■ is not directed to the issue of the bonds, but is directed to the legislation under which bonded indebtedness is incurred or renewed. If this legislation refers to the act of the general assembly of Ohio, then there was at that time and long prior thereto ample provisions for the annual levy and collection of a tax to pay the interest and provide a fund for final redemption. The following statutes would seem to cover this subject:

“Section 3953. For the payment of all bonds herein authorized, unless the interest thereon and redemption thereof is otherwise provided for, council shall levy each year during the periods the bonds have to run, a tax in addition to all levies authorized by law, sufficient to pay the interest thereon as it matures, and provide a sinking fund for their redemption at maturity.”
“Section 4506. Municipal corporations having outstanding bonds or funded debts shall, through their councils, and in addition to all other taxes authorized by law, levy and collect annually a tax upon all the real and personal property in the corporation sufficient to pay the interest and provide a sinking fund for the extinguishment of all bonds and funded debts and for the payment of all judgments final except in condemnation of property cases, and the taxes so raised shall be used for no other purpose whatever.”
“Section 4513. On or before the first Monday in May of each year, the trustees of the sinking fund shall certify to council the rate of tax necessary to provide a sinking fund for the future pay[334]*334ment of bonds issued by the corporation for the payment of final judgments, except in condemnation' of property cases, for the payment of interest on'bonded indebtedness, and the rents due on perpetual leaseholds of the corporation not payable from a special fund, and the expenses incident to the management of the sinking fund. The council shall place the several amounts so certified in the tax ordinance before and in preference to any other item and for the full amount certified. Such taxes shall be in addition to all other taxes authorized by law.”
“Section 5649-1. In any taxing district, the taxing authority shall levy a tax sufficient to provide for sinking fund and interest purposes.”

The schedule to the amendments to the constitution provides that all laws in force at the time the amendment shall take effect, not inconsistent therewith, shall continue in force until amended or repealed. This court has heretofore held that this would be true even in the absence of such a provision. Cass v. Dillon, 2 Ohio St., 607.

These sections of the General Code are not only not in conflict with this amendment to the constitution but in direct accord therewith, so that if the word “legislation” as used in this amendment refers to an act of the general assembly of Ohio, such legislation was then in full force and effect. On the other hand, if the word “legislation” means the resolution declaring the necessity for issuing these bonds and the ordinance passed by the city council authorizing the issuing thereof, then and iri that event this legislation had been enacted long before this amendment became a part [335]*335of the constitution of our state. The validity of this legislation must be determined by the constitution and laws of the state as they existed at the time such legislation is passed. The city council, in providing by resolution and ordinance for the issuing of bonds, is neither required nor permitted to anticipate changes in the constitutional or státutory law of this state. If the council was authorized to adopt this resolution when it did adopt it, if it was authorized to pass this ordinance when it did pass it, if this resolution and this ordinance were then and there a valid resolution and a valid ordinance, requiring only the action of ministerial and executive officers to carry their provisions into full force and effect, it would be idle to say that any subsequent change in the law could affect their validity or render invalid any proceedings of council that were valid at the time such proceedings were held. The fact that these officers have been delayed by this injunction suit in carrying into effect the command of the city council, expressed through an ordinance valid at the time it was enacted, cannot bring the transaction within the purview of this amendment to the constitution.

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Cite This Page — Counsel Stack

Bluebook (online)
89 Ohio St. (N.S.) 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/link-v-karb-ohio-1914.