State ex rel. Campbell v. Cincinnati Street Railway Co.

97 Ohio St. (N.S.) 283
CourtOhio Supreme Court
DecidedMarch 5, 1918
DocketNo. 15666
StatusPublished

This text of 97 Ohio St. (N.S.) 283 (State ex rel. Campbell v. Cincinnati Street Railway Co.) 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
State ex rel. Campbell v. Cincinnati Street Railway Co., 97 Ohio St. (N.S.) 283 (Ohio 1918).

Opinion

Johnson, J.

From the foregoing statement it will be seen that the contract provided for by the ordinance is attacked as fundamentally invalid because in several respects in violation of the State Constitution. In the first place it is contended that the Bauer law and the ordinance violate Article XVIII, Section 5, of ■ the Constitution, which requires the acquirement, construction, ownership, leasing or operation of a public utility, or any contract therefor, to be by ordinance. It is insisted that in this case powers are given to the Rapid Transit Commission which the Constitution provides may only be exercised by ordinance. There is nothing in Section 5 to indicate that the term “ordinance” is used in any other than its ordinary sense. An ordinance is passed by the legislative branch of a municipal government; and, while the rule is well settled that legislative powers cannot be delegated, it is equally well settled that this principle does not prevent the appointment of administrative agents for the performance of administrative duties in the carrying out of the legislative will. 1 Dillon on Municipal Corporations (5 ed.), [294]*294Section 244; Tiedeman on Municipal Corporations, Section 113; City of Akron v. Dobson, 81 Ohio St., 66; Alter v. Cincinnati, 56 Ohio St., 47, 67, and Fassig v. State, ex rel., 95 Ohio St., 232.

In this instance the council of the city took all of the requisite steps in compliance with the requirements of the constitutional provision. It passed the ordinance for the establishment of the Board of Rapid Transit Commissioners, the ordinance for the issue of bonds' for the construction of the rapid transit railway system, and the ordinance whose validity is here under inquiry. The duties of the commissioners are administrative, and consist in the carrying out of the plan authorized by the Bauer law and the ordinance, and specifically defined in the latter.

In 1 Dillon on Municipal Corporations, supra, it is said at page 462: “But the principle that the exercise of municipal powers or discretion cannot be delegated does not prevent a corporation from appointing agents and empowering them to make contracts, or from appointing committees and investing them with duties of a ministerial or administrative character.”

It is also contended that the Bauer law is unconstitutional because it provides for the issuance of bonds in violation of Section 12, Article XVIII of the Constitution, and that the ordinance involved herein is also invalid because it cannot be made operative without the issuance of such bonds.

Section 12, Article XVIII of the Constitution, provides in part:

[295]*295“Any municipality which acquires, constructs or extends any public utility and desires to raise money for such purposes may issue mortgage bonds therefor beyond the general limit of bonded indebtedness prescribed by law; provided that such mortgage bonds issued beyond the general limit of bonded indebtedness prescribed by law shall not impose any liability upon such municipality but shall be secured only upon the property and revenues of such public utility, including a franchise stating the terms upon which, in case of foreclosure, the purchaser may operate the same, which franchise shall in no case extend for a longer period than twenty years from the date of the sale of such utility and franchise on foreclosure.”

By Section 7 of the Bauer law it is provided that “When the board of rapid transit commissioners deems it necessary tp issue bonds secured by the general credit of the municipality or to levy a tax for the purpose of carrying into effect the powers herein conferred the board shall, by written resolution, so declare its judgment and state therein the amount of bonds to be issued or the tax to be levied for such purposes and transmit the resolution to the city council, which may authorize the issuance of such bonds or levy a tax for the aforesaid purposes.”

Section 8 provides: “The aggregate amount of such bonds authorized by vote of the people or total indebtedness created under the authority of this act shall not be limited by the provisions of any act or statute of Ohio or law, except by the limitation herein set forth, and such aggregate or [296]*296total indebtedness shall not exceed two per cent, of the total value of all property in such municipal corporation as listed and assessed for taxation.”

The authority of the legislature to limit the power of municipalities to levy taxes and incur debts for local purposes is comprehensively and explicitly provided for in Section 13, Article XVIII of the Constitution.

It is contended that the provisions of the Bauer law above quoted are in violation of Section 12, Article XVIII of the Constitution. It is said that the statute provides that the council may authorize the issuing of bonds secured by the general credit of a municipality “beyond the general limit of the bonded indebtedness prescribed by law.” As to this it must be remembered that the Bauer law itself is a general law. It applies uniformly throughout the state to every city in the state. Therefore, when the Bauer law by Sections 7 and 8, above quoted, authorized the issuing of bonds secured by the general credit of the municipality, which shall not be limited by the provisions of any act or statute of Ohio, or law, except by the limitation therein set forth, and then fixes the limitation, the limitation so fixed becomes the general limit of bonded indebtedness prescribed by law for the purposes and within the limitation defined- in the act itself.

The general statutes of the state had theretofore provided that "the limitation upon the power of municipal corporations to issue bonds should be as follows: Two and one-half per cent, of the value of all property listed and assessed for taxation may [297]*297be issued by the city council without a vote of the people; and two and one-half per cent, additional may be issued with the approval of a vote of the people. This constituted the general limit of bonded indebtedness prescribed by law referred to in Section 12, Article XVIII of the Constitution, until another general law, to-wit, the Bauer law, increased the general limit.

It must be further remembered that the Constitution itself does not fix a limit to the bonded indebtedness which a municipality may incur, but it does fix a method for determining a limit beyond which the .municipality may not go, to-wit, action by the general assembly. This construction we think is supported by the quotations given in the briefs of counsel from the remarks of Mr. Harris speaking on this amendment in the Constitutional Convention: “Now, the moment that you have reached the maximum limit of five per cent, of the tax duplicate for general bonds unless you can persuade the general assembly to increase the limit, then your credit must be based on the value of the utility which you propose to construct or purchase, and every buyer is cautioned that those special bonds issued against that utility háve for security only that utility and by a franchise limited to twenty years only.” (2 Const. Debates, 1461.)

It is further contended that the referendum provided for in the Bauer law is in violation of Section 5, Article XVIII of the Constitution, and, as the ordinance- involved in this case followed the referendum provision of the Bauer law, that the ordinance is invalid. Section 5, Article XVIII, [298]

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Bluebook (online)
97 Ohio St. (N.S.) 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-campbell-v-cincinnati-street-railway-co-ohio-1918.