State ex rel. Thrailkill v. Amlin

1 Ohio N.P. (n.s.) 517, 14 Ohio Dec. 113, 1903 Ohio Misc. LEXIS 81

This text of 1 Ohio N.P. (n.s.) 517 (State ex rel. Thrailkill v. Amlin) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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State ex rel. Thrailkill v. Amlin, 1 Ohio N.P. (n.s.) 517, 14 Ohio Dec. 113, 1903 Ohio Misc. LEXIS 81 (Ohio Super. Ct. 1903).

Opinion

Evans, J.

This case is submitted on the petition of the plaintiff, the answer of the parties defendant, the evidence, exhibits, and arguments of counsel.

The petition sets forth five separate and distinct causes of action. The second cause of action having heretofore been dismissed by the plaintiff, and the contract in the fifth cause of action having been reconsidered and abandoned by the commissioners, said second ■and fifth causes of action are not before me for consideration. The first, third and fourth, causes of action are here submitted on this hearing.

A statement of the facts in this case is embodied in the opinion.

The plaintiff by his first cause of action seeks to enjoin payment of interest and principal of $70,000 of emergency bridge bonds heretofore sold and issued by the commissioners of Eranklin county.

The plaintiff complains that the hoard of commissioners failed to comply with certain essential requirements of the statutes in the preliminary steps, and acted contrary to law in advertising, issuing and delivering said bonds.

I have qarefully examined into all the proceedings of the commissioners, as shown by the evidence and exhibits, but it will not be necessary here to review all their proceedings, and I will confine myself to such only as counsel for complainant has, in his argument, directed attention. The evidence shows that all the proceedings for this bond issue, the advertisement and sale thereof, the delivery and circulation of the same, were all performed and completed in the early part of the year 1902, and the money therefor placed in the county treasury, appropriated, and expended in part, if not altogether, for the sole purpose designated. On March 3 [519]*5191902, the commissioners, as a part of their proceedings, adopted a resolution by a unanimous vote, levying under Section 2824, Revised 'Statutes, a special tax of eighty-five one-hundredths mills upon each dollar of taxable valuation of all taxable property in the county, for the restoration and building of the bridges and culverts specifically enumerated, and that' such special tax be collected annually in such amounts as will meet the principal and interest of said bonds, hereinafter mentioned, and to be issued in anticipation of the collection of said special tax.

Said board further resolved that for the purpose of anticipating the collection of such special tax the sum of $70,000 be borrowed at a rate of interest not exceeding four per centum per annum, interest payable semi-annually; that under the provisions of Section 2824, Revised Statutes, four bonds of Franklin county, Ohio, for the aggregate sum of $70,000 be issued and sold for the purpose 'of raising the money necessary to restore and build said bridges and culverts. Said bonds to be due and payable as follows: All of said bonds dated April 1, 1902, each bearing interest as aforesaid, due in one, two, three and four years respectively, after date, three of said bonds for the sum of $20,000 each, and one of said bonds for the sum of $10,000.

Said board had theretofore, as a part of the preliminary steps, found and determined that it was necessary to rebuild and repair some fifty-one specified bridges and culverts in the county, which bridges and culverts were rendered unsafe by reason of floods and decay, and the county surveyor had been directed to, and did furnish all necessary plans and specifications therefor, and had estimated the cost thereof in the sum of $76,389.03. Said board of commissioners thereupon proceeded to and did advertise the sale of said bonds, as required by law, in the denominations as set forth in the aforesaid resolution. Said advertisement was in the usual form, and contained the requirements as provided in Section 22b, Revised Statutes, except that it failed to state the law or section of law authorizing the said bond issue, as required by said section of the statutes. Said advertisement, however, contained the proviso that the form of bonds will be made to suit purchasers, and also provided that bidders are required to be satisfied as to the legality of said bonds before bidding.

[520]*520The Ohio National Bank being the highest bidder the bonds were on March 28, 1902, sold to said bank at a premium of $150. And on the following day, at a meeting of said board, said bid was accepted, and the board by a unanimous vote, adopted a resolution ordering that the denomination of said bonds be changed to read $1,000 each instead of $20,000 and $10,000 each. And said bonds were issued and delivered to said purchaser in denominations of $1,000 each.

The contention of the plaintiff is:

(1) That the board of commissioners transcended the law in issuing said bonds in denominations of $1,000 each, after having advertised and sold the same in denominations of $20,000 and $10,000 each.

(2) That the omission of the cofhmissioners to state the law . or the section of the law authorizing the issue of said bonds in their advertisement was material and invalidated said sale.

Counsel for plaintiff contends that, by reason of the above facts, said bonds should be held invalid and void, and that their payment should be enjoined, and that the special levy of taxes for the payment of the interest and principal thereof should be enjoined.

First. Was the act of the board of county commissioners in changing the denomination of the bonds when issued, in violation of the law, and, if so, is it sufficient to invalidate the bonds ? The sections of the statutes prescribing the manner of advertising, selling, and issuing of bonds are Section 225 and Section 87’2, Revised Statutes, and they must be construed together'.

Section 225 provides that—

“All bonds issued by boards of county commissioners, * * * shall be sold to the highest bidder after being advertised three times, weekly, in a newspaper having a general circulation in the county where the bonds are issued; and if the amount of bonds to be sold exceeds twenty thousand dollars, then in an additional newspaper having a general circulation in the state, three times, weekly. The advertisement shall state the total amount of bonds to be sold, the amount of each bond, how long they are to run, the rate of interest to be paid thereon, whether annually, or semi-annually, the law or section of law authorizing their issue, the day, hour and place in the county where they are to be sold. None of said bonds shall be sold for less than the face thereof, with any interest that [521]*521may have accrued thereon; and the privilege shall be reserved of rejecting all or any bids, and if said bids are rejected said bonds shall again be advertised; all moneys arising from premiums on the sale of said bonds, as well as the principal, shall be credited to the fund on account of which the bonds are issued and sold.”

The above section of the statute does not attempt to limit or define in what denomination bonds shall be sold or issued. So far as advertising and selling the bonds is concerned it seems to leave to the discretion of the board.

Section 22b above, is the act of March 22, 1883. Preceding the passage of that act there seems to have been no uniform provision of law in detail for the manner of advertising the sale of bonds of this character, and its evident purpose was to specifically define the manner of advertising, to adopt uniformity and to do away with any laxity in the manner of advertising and selling bonds, of the character enumerated.

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1 Ohio N.P. (n.s.) 517, 14 Ohio Dec. 113, 1903 Ohio Misc. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-thrailkill-v-amlin-ohctcomplfrankl-1903.