McVickers v. Zerger

1964 OK 40, 389 P.2d 977, 1964 Okla. LEXIS 275
CourtSupreme Court of Oklahoma
DecidedFebruary 25, 1964
Docket40782
StatusPublished
Cited by4 cases

This text of 1964 OK 40 (McVickers v. Zerger) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McVickers v. Zerger, 1964 OK 40, 389 P.2d 977, 1964 Okla. LEXIS 275 (Okla. 1964).

Opinion

HALLEY, Vice Chief Justice.

This is an original proceeding in this Court by Ed McVickers, Dr. J. B. Miles, Bert Temple, Frank Elkouri, W. A. Cowans, Vaughndean Landes, Wallace Kidd and Ronald Bassett, as plaintiffs, against Waldo J. Zerger, Mayor, Melvin R. Allen, Vice-Mayor, Carl Miller, J. L. Welch, Wilford D. Lager, Richard Bell and Victor Scott, councilmen of the City of Anadarko, asking this Court to assume jurisdiction. The plaintiffs are resident taxpayers of the City of Anadarko and are appearing for themselves and others similarly situated. They charge that the defendants as Mayor, Vice-Mayor and Councilmen of the City of Anadarko are planning to call an election under Section 35, Article X -of the Constitution of the State of Oklahoma for the purpose of raising funds by issuing and selling bonds which would be used for securing and developing industry within or near the City of Anadarko and that if the defendants are not enjoined they will do so. They say that Section 35, Article X only applies to incorporated towns and does not apply to incorporated cities and that the bonds, if voted, might exceed the 5% debt limitation of Section 26, Article X of the Oklahoma Constitution. It is further charged that the defendants will mortgage the industrial properties so acquired in order to obtain other funds that might be available from Federal or State funds. The plaintiffs ask that the defendants be enjoined from proceeding further in the calling of an election, and the issuance, delivery and marketing any bonds pursuant to Section 35, Article X of the Oklahoma Constitution.

Due to the importance and urgency of the matters herein involved to the City of Anadarko and other cities of Oklahoma we will accept original jurisdiction. See Meder v. City of Oklahoma City, Okl., 350 P.2d 916.

The following stipulation of facts was entered into by the parties:

“1. That the Mayor and Councilmen of the City of Anadarko intend and are preparing to call an election for the purpose of submitting to the qualified voters of said municipality the question of issuing limited tax general obligation bonds pursuant to the provisions of Article X, Section 35 of the Oklahoma Constitution for the purpose of securing and developing industry within the said municipality.
“2. That one of the principal purposes of Article X, Section 35 is the securing and development of industry which will provide additional employment and strengthen the economy of the municipality issuing said limited tax general obligation bonds, and the State of Oklahoma.
“3. That the Cities of Cushing and Stillwater are similarly situated as the City of Anadarko with regard to the issuance of limited tax general obligation bonds to secure and develop industry; and that the said cities cannot proceed pursuant to the provisions of the Local Industrial Development law or Public Trust Act, which provides for the establishment of an Authority with the outstanding obligations to be retired from the revenue derived *979 from the rental and other commitments made by the industry. Small and medium-sized industries have difficulty in having revenue bonds sold and issued by means of a municipally or publicly controlled vehicle such as a trust or authority. There have been only two cases in Oklahoma where revenue bonds have been issued and sold to finance the acquisition of industrial activities and both companies are national in size and their stock traded on the New York Stock Exchange.
“4. That attached hereto is a chart published by the Oklahoma Department of Commerce and Industry which depicts the economic effect of a new factory employing 100 workers in a community. Such graphic presentation most clearly portrays the expected results to be obtained from similar industries in terms of eventual employment to be located in the Cities of Anadarko, Cushing and Stillwater.
“5. That the governing boards of the three said municipalities intend to proceed with the election and issuance and sale of limited tax general obligation bonds for the purpose of securing and developing industry to be used for manufacturing; and that the location of said industrial concerns and facilities within or near the three municipalities will create many additional jobs and employment within the State; that the governing boards are presently negotiating with various other industrial concerns interested in locating plants in Oklahoma which, if so located, will result in additional employment, payrolls and stimulation of the economy within and without the corporate limits of the three municipalities; and that many employees of such industrial concerns will reside in other cities and commute to their jobs thereby directly benefiting other cities and communities over the State in addition to the three municipalities involved. The foregoing is also the position of the Oklahoma Municipal League representing 250 Oklahoma municipalities.
“Dated this 22 day of January, 1964.”

The plaintiffs raise four propositions which we will answer in this case. They are:

“1. Is Section 35, Article X, of the State Constitution, self-executing?
“2. Does Section 35, Article X, of the State Constitution, apply to cities of first class?
“3. Does the 5% debt limitation of Section 26, Article X, of the State Constitution, apply to industrial development bonds issued by cities under Section 35, Article X, of the State Constitution ?
“4. Can the city’s title in industrial building acquired under provisions of Section 35, Article X, of the State Constitution, be mortgaged in the event necessary to supplement federal or state funds or funds from other sources ?”

We will discuss them in the above order.

Proposition One raises the question of whether Section 35, Article X of our State Constitution is self-executing. In our opinion this Section is sufficient in itself. A reading of the same shows clearly that it needs no act of the Legislature in order to know how to proceed under it. We have spoken clearly on a similar question in City of Shawnee v. Williamson, Okl., 338 P.2d 355.

The plaintiffs’ second proposition raises an interesting question. It challenges Section 35, Article X as not applying to incorporated cities as the words “incorporated city” are omitted. The first paragraph of the Section is as follows:

“ (a) Any incorporated town and any county may issue, by and with the consent of the majority of the qualified taxpaying voters of said municipality or county voting on the question at an election held for the purpose, bonds in *980 sums provided by such majority at such election for the purpose of securing and developing industry within or near the said municipality holding the election, or within the county holding the election.”

However, in the preamble of .the Senate Joint Resolution No. 12 this language is used:

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Related

Opinion No. 68-325 (1968) Ag
Oklahoma Attorney General Reports, 1968
Sharpe v. State Ex Rel. Oklahoma Bar Association
448 P.2d 301 (Court on the Judiciary of Oklahoma, 1968)
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442 P.2d 297 (Supreme Court of Oklahoma, 1968)
Sublett v. City of Tulsa
405 P.2d 185 (Supreme Court of Oklahoma, 1965)

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Bluebook (online)
1964 OK 40, 389 P.2d 977, 1964 Okla. LEXIS 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcvickers-v-zerger-okla-1964.