State ex rel. City of Lincoln v. Babcock

19 Neb. 230
CourtNebraska Supreme Court
DecidedJanuary 15, 1886
StatusPublished
Cited by9 cases

This text of 19 Neb. 230 (State ex rel. City of Lincoln v. Babcock) is published on Counsel Stack Legal Research, covering Nebraska 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. City of Lincoln v. Babcock, 19 Neb. 230 (Neb. 1886).

Opinion

Maxwell, Oh. J.

This is an application for a mandamus against the secretary of state and auditor to compel them to register “ and under their seal of office certify upon” bonds to the amount of $50,000 issued as a donation to the Missouri Pacific Railway, “ that they have been regularly and legally issued,” etc. The relator alleges in its petition that,

“3d. Prior to the 10th day of October, 1885, in due conformity to law, the relator, the city of Lincoln, had issued its bonds in aid of the construction of works of internal improvement, as follows:
In 1872, to the Atchison & Nebraska Railroad Company.$ 9,500
In 1880, to the Lincoln & Northwestern Railroad Company.$25,000
Which were issued by said city in aid of works of internal improvement, and amount to.$34,500
“4th. On the 10th day of October, 1885, the assessed valuation of all taxable property in the city of Lincoln amounted to the sum of $2,183,030,- as the same was asr sessed and returned at the time of the assessments in April and May of the year 1884 for revenue purposes.
“5th. On the 7th day of September, a.l. 1885, the mayor and council of said city of Lincoln duly passed an ordinance calling a special election in said city of Lin-[232]*232cola, to be held oa the 10th day of October, 1885, for the purpose of taking the vote of the electors ofsaid city upon a proposition to them submitted, to issue and donate to the. Missouri Pacific Railway Company the bonds of said city of Lincoln to the amount $50,000, dated November 1st, 1885, payable twenty years thereafter, with interest from the 1st day of January, 1886, at the rate of five per cent per annum, payable semi-annually, interest and principal payable at the bank of Kountz Brothers in the city of New York, to aid said' Missouri Pacific Railroad Company in the construction of its road from its main line in Cass county to said city of Lincoln.
6th. Said proposition was conditioned that said railway company should construct a first-class railroad of standard guage into said city of Lincoln, connected with the main line of said company already constructed, so that continuous trains might be run thereon from its main line into said city; that said company should begin active construction of said road within thirty days from the date of election.and declaration of the adoption of the proposition, and complete said railroad, with a necessary depot for freight and passengers at said city, and other appurtenances; and run regular trains thereon from its already constructed line in this state into said city of Lincoln by the first day of September, 1886.
“7th. By said proposition it was also provided that thirty days after the active work of constructing said railroad should have begun, said bonds should be executed and deposited in the hands of a trustee, to be appointed by the mayor of said city, to hold in trust for said company and for said city, to be delivered to said company if it should comply with the conditions aforesaid, otherwise to be re. turned to said city to be canceled.
“ 8th. Said ordinance was duly approved and was published as required by law for four weeks continuously in the Nebraska State Journal, a weekly newspaper published [233]*233in said, city, commencing the 10th day of September, 1885; and such election was duly and regularly held the 10th day of October, 1885, and on the 12th day of October, 1885, the returns of said election were by the mayor and council of said city of Lincoln duly canvassed, and the vote of the electors east found and declared to be, in favor of said proposition, 1799 votes; against said proposition, 56 votes; and more than two-thirds of the votes cast being in favor of said proposition. The result was thereupon, by the mayor and council of said city, declared to be that said proposition was adopted, and ihe proposition and result was entered upon the records of said city of Lincoln, and notice of its adoption was published in said weekly newspaper, the Nebraska State Journal, as required by law,'for two weeks continuously prior to the issue of said bonds.
“ 9th. The Missouri Pacific Railway Company on its part accepted the result so declared, and entered upon the active construction of its railway on or about the 8th day of November, a.d. 1885, and within less than thirty days after said election, and has completed and laid about two miles of its road ready for the passage of rolling stock, engines, and cars, and has acquired by purchase a large amount of real estate in fee simple for depot grounds, for which real estate so purchased it has paid out the sum of eighty thousand dollars, and is now engaged in acquiring, partly by purchase and partly by condemnation, grounds for depots, side tracks, yard, and appurtenant uses, tracts of grounds aggregating fifty-one acres in and adjacent to said city, having to this time fully complied with all the terms and conditions of said proposition on its part to be performed.
“ 10th. Pursuant to said proposition and the facts aforesaid, thirty days after actual work of construction of said railroad had been commenced, by order of the mayor and council of said city, the mayor and clerk of said city proceeded to sign and execute said bonds, and the mayor of said city named and designated the First National Rank, [234]*234of Lincoln, Nebraska, as trustee to receive and hold the same under the terms of said ordinance and proposition so adopted by the electors, and thereupon, before delivering said bonds to said trustee, the relator applied to the respondents, H. A. Babcock, auditor of public accounts, and Edward P. Roggen, secretary of the state of Nebraska, under the provisions of “ An act to provide for the registration by the auditor of public accounts of bonds issued by villages and cities of the second class,” approved March 5th, 1885, for the registration of said bonds, and requested that they certify upon' said bonds that they have been regularly issued and registered in the office of the auditor of public accounts, and furnished to said auditor a transcript of all the proceedings had previous to the issuance of said bonds relative thereto, duly certified under the hand of R. C. Manley, city clerk of said city, authenticated by'the seal of said city, and offered to pay said auditor the legal fees therefor, but the registration of said bonds was by the respondents refused.
“11th. Relator further shows that, so far as it is advised, the reason wherefor said respondents refuse to register said bonds, as they claim, that the said issue is excessive in amount and is in excess of the power of said city to issue bonds, because, as respondents claim, the city of Lincoln has no power to issue bonds for aid of works of internal improvement exceeding, together with outstanding bonds for whatsoever purposes issued, the amount of ten per centum of the assessed valuation of said city, and that the outstanding obligations of said city, together with the proposed 50,000 (thousand) dollars of bonds, exceed the sum of $218,303.
“13th. But relator shows all its outstanding bond obligations of every character unpaid the 10th day of October, 1885, or November 1st, 1885, together with the year and the purpose of their issue, were and are as follows:

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Bluebook (online)
19 Neb. 230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-city-of-lincoln-v-babcock-neb-1886.