Road District Number Four v. Allred

68 S.W.2d 164, 123 Tex. 77, 1934 Tex. LEXIS 179
CourtTexas Supreme Court
DecidedFebruary 7, 1934
DocketNo. 6643.
StatusPublished
Cited by36 cases

This text of 68 S.W.2d 164 (Road District Number Four v. Allred) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Road District Number Four v. Allred, 68 S.W.2d 164, 123 Tex. 77, 1934 Tex. LEXIS 179 (Tex. 1934).

Opinion

Mr. JUDGE CRITZ

delivered the opinion of the Commission of Appeals, Section A.

This is an original mandamus proceeding brought by Road District Number Four of Shelby County, Texas, against James V. Allred, Attorney General of Texas, to compel his approval of a little over $300,000 refunding bonds of the district.

In 1919 the Commissioners Court of Shelby County entered an order purporting to create Road District Number Four of Shelby County County, Texas. After this order was entered the bonds of the district in the total sum of $350,000 were voted by the district, issued by the Court, approved by the Attorney General, registered by the Comptroller and returned! to the Court.

After the happening of the above events the Court sold and delivered to one E. L. Twing $300,000 of the above bonds.. Twing paid $40,000 of this consideration. He then absconded! and never paid the balance due, $260,000. Twing sold all of *80 the $300,000 of bonds, and they went into the hands of bona fide holders for value. Later the Court sold the remaining $50,000 of bonds, and received the proceeds thereof. All these bonds were later validated by the Legislature. Twing v. Rhodes, 118 Texas, 410, 16 S. W. (2d) 258.

From the above it appears that the district received $90,000 out of the original $350,000 bond issue. The $260,000 has never been paid to the district, and it has never received any consideration whatever therefor.

The $350,000 in bonds were originally voted to construct what are now parts of State Highways Numbers twenty-two and thirty-five in the district. Since the district never received the $260,000 of course none of it was ever expended on such roads. The record does not inform us what was done with the $90,000. The Relator does not make any allegation that it was used on any public road, and we presume that it was not so used.

As a part of the history of this transaction, the district in one way or another, resisted the validity of the $260,000 bonds for which it had never received the consideration. It was finally determined that these bonds are valid obligations against the district. Twing v. Rhodes, 118 Texas, 410, 16 S. W. (2d) 258; Rhodes v. Twing (Com. App.), 41 S. W. (2d) 13.

From the record we gather that there is now outstanding against the above district in road bonds, and road bonds that have been merged into final judgments against the district, more than $300,000.

In the above state of the record the Forty-third Legislature passed, as a Special Road Law for Shelby County, Chapter 55, S. B. No. 484, Special Laws Forty-third Legislature, 1933, p. • 67. It is the question as to the validity of this Act that has caused this proceeding. Since the decision of this suit must depend upon the construction and validity of the Act just mentioned we deem it expedient to quote it in full. It is as follows:

“SPECIAL ROAD LAW FOR SHELBY COUNTY AMENDED.

“S. B. No. 484 Chapter 55.

“An Act to amend Chapter 174 passed at the Regular Session of the Thirty-ninth Legislature of Texas, approved on the 16th day of March, A. D. 1925, creating a special road law for Shelby County, and adding thereto Sections 3 to 14, providing that the Commisisoners’ Court of Shelby County may refund any and all valid outstanding bonded indebtedness or judgments recovered on bonded or other indebtedness of said County, to *81 gether with interest accrued thereon, by the issuance of funding or refunding bonds without a vote of the taxpayers of said county; authorizing the Commissioners’ Court of said County to levy and assess road and bridge taxes and road maintenance taxes as provided by Article 8, Section 9 of the Constitution of Texas; authorizing the Commissioners’ Court of said County to fund and refund the legal indebtedness outstanding against its road and bridge fund at the time of the issuance of such funding or refunding bonds, setting forth the method of said operation; authorizing the said Commissioners’ Court to refund the bonded indebtedness or judgment indebtedness recovered on bonds, both principal and interest, of road district No. 4 of said County, together with the accrued interest thereon, and providing for the rate of interest, maturities and form of such bonds; that the same shall be approved by the Attorney General and registered by the Comptroller, and that said bonds may be exchanged for such outstanding bonded judgment or other indebtedness, or may be sold and the proceeds used to pay such bonded judgment or outstanding indebtedness; providing for the levy of taxes for the payment of principal and interest of such funding or refunding bonds; providing that such refunding bonds shall be permitted to participate in and be paid from the ‘County and Road District Highway Fund’ provided for in Section Six, Chapter Thirteen, passed at the Third Called Session of the Forty-second Legislature and making them eligible to participate in and be paid from said fund, and declaring an emergency.

“be it enacted by the legislature of THE STATE OF TEXAS:

“Section 1. That Chapter 174 of the Regular Session of the Thirty-ninth Legislature of the State of Texas, approved March 16, 1925, be amended by adding thereto Sections 3 to 14, as follows:

“Sec. 3. The Commissioners’ Court of Shelby County, Texas, is authorized and empowered to fund into the bonds of Shelby County, Texas, such legal indebtedness of the County, chargeable against the road and bridge fund, in the form of scrip, or warrants, or bonds, either or all. Such funding bonds may be issued by the court, payable serially or otherwise, within a period of time, not exceeding forty years, as the court may direct, or may be issued payable within forty years from the date thereof, and shall bear interest at a rate of not more than six (6) per cent per annum, payable annually or semi-annually, the rate and interest payment dates to be determined by the court, in such denominations as may be provided by the court; *82 at such time as said bonds shall be issued, it shall be the duty of the Commissioners’ Court to levy an annual ad valorem tax on all taxable property within the county, sufficient to provide for the payment of the principal thereof, as the same matures ; and in such cases, it shall not be necessary to submit the questions of the issuance of said funding or refunding bonds to a vote of the people. The Commissioners’ Court is authorized to issue said bonds in exchange for like amounts of the outstanding scrip, warrants or bonds of said county. Said bonds when executed shall be approved by the Attorney General and shall be registered by the Comptroller; provided that the Commissioners’ Court shall determine at the time of passing the refunding order the amount of tax rate required, based on the then assessed valuation of the taxable property of Shelby County, to create the necessary sinking fund for, and to pay the interest on, all obligations to be included in said refunding order, and shall also calculate the tax rate that will be required to pay the interest on and create a sinking fund to retire the funding or refunding bonds authorized in lieu thereof.

“Sec. 4.

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Bluebook (online)
68 S.W.2d 164, 123 Tex. 77, 1934 Tex. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/road-district-number-four-v-allred-tex-1934.