Naegely v. City of Saginaw

60 N.W. 46, 101 Mich. 532, 1894 Mich. LEXIS 969
CourtMichigan Supreme Court
DecidedSeptember 25, 1894
StatusPublished
Cited by4 cases

This text of 60 N.W. 46 (Naegely v. City of Saginaw) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Naegely v. City of Saginaw, 60 N.W. 46, 101 Mich. 532, 1894 Mich. LEXIS 969 (Mich. 1894).

Opinion

McGrath, C. J.

The bill in this case was filed to restrain the issue of bonds for the construction of bridges. The resolutions ordering the issue, and the authority of the city in the premises, were passed upon in Tillotson v. City of Saginaw, 94 Mich. 240. Other questions are raised which were not presented in that case, and subsequent action of the common council is relied upon.

In October, 1891, the city obtained permission from the board of supervisors of Saginaw county to construct three bridges across the Saginaw river. On February 23, 1892, the council adopted resolutions proposed by Aid. Eellis, which are set forth in the opinion in the Tillotson case, on pages 242 and 243, providing for the issue of bridge bonds in the sum of $200,000, of which $125,000 were to be issued under section 25, tit. 5, of the charter,1 and $75,000 under Act Ho. 321, Local Acts of 1891. Appended to each of said resolutions was a further resolution fixing the amount of each bond; the date thereof; the rate of interest, and when payable; where principal and interest should be made payable; the time when said bonds should mature and fall due, — and directing that the bonds be made, executed, issued, negotiated, and sold by the mayor, controller, and clerk at the best obtainable price therefor, but not below their face or par value.

On April 5, 1892, the council had adopted resolutions for the issue of Genesee street improvement bonds in the [535]*535sum of $30,000. After the decision in the Tillotson case, and on January 23, 1893, resolutions were presented to the council by Ald. Reynolds, and adopted, as follows:

“Resolved, by the common council of the city of Saginaw, that the mayor, controller, and city clerk of said city be and they are hereby instructed to limit the present issuance and sale of the bridge bonds ordered by'the resolutions of Ald. Reilis, adopted February 23, 1892, found on pages 652 and 653 of the C. C. P. for the years 1891 and 1892, to the amount of $90,000. * * * * *
“Resolved further, that the mayor, controller, and city clerk be and they are hereby instructed to limit the present issuance and sale of the bonds known as Genesee Street Improvement Bonds/ ordered by the resolution of Aid. Cadagan, adopted April 5, 1892, found on pages 711 to 712 of C. C. P. for the years 1891 to 1892, to the sum of $2o;ooo.”

On January 25, 1893, the controller issued a circular asking for proposals for the bonds. At the regular meeting of the council' held January 30, 1893, Aid. Smith presented the following resolutions:

“Resolved, that the resolutions offered by Aid. Rellis, and, found on pages 652 and 653 of the common council proceedings for the years 1891 and 1892, and adopted by the common council February 23, 1892, directing the raising of $125,000 for the purpose of constructing a bridge across Saginaw river and Emerson bayou, on a line of Court street extended easterly to the street authorized November 2, 1891, by the council, etc.; also a bridge across said river on a line of Maple street, in the village of Carrollton, extended into the First ward of the city of Saginaw; and also a bridge across said river east from Perry street, in said city, — and to procure the light of way for said bridges, and authorizing the issuing of the bonds of the city as a means of raising said amount for said purposes, etc.; and also directing the borrowing of $75,000 to be used in defraying the expenses of procuring the right of way for and approaches to and the building of three bridges across said river for said city, as provided by Act 321 of the Laws of Michigan, approved May 8, 1891, etc., and authorizing the issuing of the bonds as a [536]*536means of borrowing said snm for said purposes, etc., — be and the same are hereby rescinded.
“And resolved further, that the mayor, controller, and city clerk be and they are hereby directed to not make, execute, issue, negotiate, or sell any such bonds whatever.”

When the reading of the resolutions was commenced, eight of the aldermen present retired. The journal of the council records said resolutions as having been adopted by a vote of 14 ayes and 5 nays. The journal also shows that a motion to reconsider said resolutions was made, and laid upon the table.

Thereupon a call for a special meeting of the common council was signed by 11 aldermen, and a special meeting was held January 31, 1893, at which 28 aldermen and the mayor, who is ex officio a member of the council, were present. At said meeting the mayor presented a veto of the action of the council in adopting the resolutions last aforesaid. Thereupon, the following resolution was presented by Aid. Achard:

“Resolved, that the resolution offered by Aid. Smith, at the regular meeting held on Monday evening, January 30, .1893, rescinding the resolutions adopted February 23, 1892, ^providing for the issuing of bonds in the sums of $125,-<000 and $75,000, for the purpose of building three bridges across Saginaw river, be and the same is hereby rescinded and annulled.” '

The resolution was adopted by a vote of 16 ayes to 13 nays.

On February 6, 1893, at a regular meeting of the common council, Aid. Johnson presented the following resolution:

“Resolved, by the common council of the city of Saginaw, that the mayor, controller, and city clerk be and they are hereby instructed to proceed with the issuance and sale of the $90,000 of bridge bonds referred to in the resolution of Ald. Reynolds, adopted January 23, 1893, found on O. C. P. page 615, in accordance with the pro[537]*537visions of section 25 of title 5 of the charter, as required by the first resolution of Aid. Rellis, adopted February 23, 1892, and found on page 652, C. O. P. 1891 and 1892, and that they 'proceed with the issuance and sale of the bridge bonds in the sum of $75,000, in accordance with Act 321, Local Acts of 1891, as required by the second resolution of Aid. Rellis, adopted February 23, 1892, and found on page 653, C. C. P. 1891 and 1892, and that they accept the bid of the highest responsible bidder for the bridge and Genesee street improvement bonds, provided the said bid is not below the par value of said bonds.”

Objection was made to the consideration of the resolution, but the mayor ruled that the resolution was not new business, and that one objection did not postpone its consideration. An appeal was taken from the ruling of the mayor, and the chair was sustained by a vote of 20 to 9. The resolution was then adopted by a vote of 16 to 14. On February 11 the bids for the bonds were opened, and this bill was filed on the same day. On February 13 the controller and clerk reported their action upon the bids to the council, and such action was approved.

Respecting these resolutions complainant’s counsel contend:

1. That the resolution of Aid. Reynolds not only limited entire amount of bridge bonds to be issued to $90,000, but that it in effect entirely annulled the former resolutions of Aid. Rellis.

2. That, assuming that the Reynolds resolution limits the entire issue of bridge bonds to $90,000^ it is invalid, because it does not provide that they shall be issued under the charter, or under Act No. 321, Local Acts of 1891.

3. That the resolution of Aid.

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Bluebook (online)
60 N.W. 46, 101 Mich. 532, 1894 Mich. LEXIS 969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/naegely-v-city-of-saginaw-mich-1894.