McCarthy v. McElvaney

182 S.W. 1181, 1916 Tex. App. LEXIS 87
CourtCourt of Appeals of Texas
DecidedJanuary 22, 1916
DocketNo. 7621.
StatusPublished
Cited by5 cases

This text of 182 S.W. 1181 (McCarthy v. McElvaney) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCarthy v. McElvaney, 182 S.W. 1181, 1916 Tex. App. LEXIS 87 (Tex. Ct. App. 1916).

Opinion

RAINEY, C. J.

This suit was brought by appellant against the city of Denison, Tex., to enjoin the issuing and selling of certain bonds for the building of a viaduct. The application for a temporary injunction was made to the judge in vacation, on which day it was refused. An appeal was duly perfected.

The first assignment of error presented is:

“The trial court erred in refusing to grant the relief by injunction asked for by plaintiff on the ground that the resolution of the city council was fatally defective and wholly insufficient to authorize a submission by said city *1182 council to the electors of the city of the question of the issuance of certain municipal bonds, and that the election attempted to be held pursuant to such resolution was illegal and void.”

The proposition is made that the charter provisions require certain necessary steps to he taken by the council as a precedent for the issuance of bonds, and that those requirements were not observed; hence the issuance of said bonds would be invalid; that no such resolutions as contemplated by the charter for holding such an election were passed by the council; hence the election was void. The council of Denison, on August 12, 1915, passed a resolution as follows:

“At a regular meeting of the city council of the city of Denison, Texas, held at 3 o’clock p. m., August 12, 1915, the following proceedings were had: Alderman F. G. Coleman offered the following resolution: Whereas, the city council of the city of Denison, Texas, deems it advisable to issue certain bonds of said city for the purpose and in the amounts hereinafter set forth, it is hereby directed and ordered hy the city council of the city of Denison that an election be held in said city on the 9th day of September, 1915, at which election the following proposition shall be submitted: Shall the city council of the city of Denison be authorized to issue the bonds of the said city of Denison in the sum of fifty thousand dollars, to be payable from one to .twenty yeairs after date, twenty-five hundred dollars of such bonds maturing each year, hearing interest at the rate of five percent. per annum, interest payable semiannually, and to levy a tax sufficient to pay the interest on said bonds as it matures and to create a sinking fund sufficient to redeem them at maturity, for the purpose of constructing permanent street improvements, to wit: A viaduct connecting Rusk avenue from a point near the intersection of same with Morgan street with Austin avenue at a point near its intersection with Munson street, all in the city of Denison, said viaduct to Be constructed in a permanent and substantial manner of steel, stone and concrete, all in accordance with plans and specifications to be prepared therefor.”

The resolution then specified the places where the election was to be held, naming the respective presiding judges, and stating that the election was to be held subject to the laws of the state and charter of Deni-son, and that only qualified property owners and taxpaying voters of said city would be allowed to vote. It stated what should be printed on the ticket, and provided for the mayor issuing a proclamation for holding said election in accordance with said resolution and publishing same as provided by law. In accordance with said resolution the mayor issued his proclamation, which was duly published, and an election was duly held; the proposition to issue bonds being duly carried. The mayor’s proclamation, after reciting said passage of the resolution, further recited that it is—

“determined that it is advisable that there be issued the negotiable bonds of the city of Denison, Texas, for the purpose of construction of permanent improvements to streets by the construction of a viaduct connecting Rusk and Austin avenues between Munson and Morgan streets; that the total amount of such issue shall be $50,000.00 and bonds so issued shall bear interest, payable semiannually, at the rate of five per cent, per annum, and to be of the denomination of $500.00 each when issued and to be payable from one to twenty years after date; $2,500.00 of such bonds maturing each year.”

The charter of Denison bearing upon the proposition in question is as follows:

“Article IV. Sec. 1. The city of Denison is hereby authorized and empowered to issue bonds as herein provided hut not otherwise and all bonds hereafter issued shall be authorized by ordinance duly passed and each ordinance providing for the issue of bonds shall specify the precise purpose for which the bonds are issued and the use to which the money realized from said bonds shall be put. The city council of the city of Denison may, of its own motion, and without any vote of the people, issue bonds to refund and take up old bonds theretofore issued and to extend the time of payment of the debts represented by bonds heretofore issued and to be refunded. But it is expressly provided that all the above-named bonds which may be so issued by the city council shall not bear interest at a rate exceeding five per centum per annum and said interest shall be paid semiannually as it accrues, and it is further expressly provided that the principal aggregate amount of the above-named bonds which may be hereafter issued by the city council shall be divided into fifteen different portions and one portion of the principal amount of each issue of 'bonds shall be paid each year and the bonds represented by said payment shall be duly canceled and a record of the same made and the said bonds when paid and canceled shall be kept as evidence of payment and of the cancellation thereof.
“Sec. 2. Power and authority is hereby granted to the city of Denison to issue other bonds than those above provided for but no bonds other than those above provided for in section 1 of this article shall ever be issued unless the issuance of the same shall be authorized by a vote of the inhabitants of the city of Denison as herein provided for.
“Sec. 3. No bonds shall ever be issued under section 2 of this act except for the making of permanent improvements and for furnishing public utilities such as are named in this act, and no such bonds shall ever be issued which shall bear interest exceeding the rate of live per cent, with said interest payable semiannually as it accrues, nor shall any such bonds be issued except upon ordinance made by the city council after a majority vote of the electors of the city of Denison in favor of said ordinance and the issuance of said bonds as hereinafter determined.
“Sec. 4. Whenever the city council may deem it advisable to issue bonds other than those provided for in section 1 of this article, the council shall by resolution declare the purpose for which it deems the issuance of bonds advisable, the amount of bonds which it deems advisable to issue and sell to raise money to execute said purpose, the rate of interest which said bonds shall bear and the denomination in which said bonds shall be issued.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

City of Clute v. City of Lake Jackson
559 S.W.2d 391 (Court of Appeals of Texas, 1977)
Saunders v. State
341 S.W.2d 173 (Court of Criminal Appeals of Texas, 1960)
Baker v. Lake City Sewer District
191 P.2d 844 (Washington Supreme Court, 1948)
Harris v. City of Port Arthur
267 S.W. 349 (Court of Appeals of Texas, 1924)
City of Vernon v. Montgomery
265 S.W. 188 (Court of Appeals of Texas, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
182 S.W. 1181, 1916 Tex. App. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarthy-v-mcelvaney-texapp-1916.