United States v. Phillips

33 F. Supp. 261, 1940 U.S. Dist. LEXIS 3060
CourtDistrict Court, N.D. Oklahoma
DecidedApril 25, 1940
Docket351
StatusPublished
Cited by4 cases

This text of 33 F. Supp. 261 (United States v. Phillips) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Phillips, 33 F. Supp. 261, 1940 U.S. Dist. LEXIS 3060 (N.D. Okla. 1940).

Opinion

PER CURIAM.

Findings of Fact,

1. The defendant Leon C. Phillips is the duly qualified and acting Governor of the State of Oklahoma, and Commander-in-Chief of its National Guard and Militia.

2. The defendant Mac Q. .Williamson, is the duly qualified and acting Attorney General of the State of Oklahoma.

3. The defendant Louis A. Ledbetter, is the duly qualified and acting Adjutant General of the National Guard of the State of Oklahoma.

4. The defendants S. H. Singleton, George Meacham, and H. E. Bailey, are the duly qualified and acting members of the State Highway Commission, an agency of the State of Oklahoma, created and functioning by virtue of Article 2, of Chapter 50, of the Session Laws of 1939, of the ■ State of Oklahoma, 69 Okl.St.Ann. § 27.1 et seq.

5. The plaintiff has dismissed the complaint as against the defendant, State Highway Commission, but not against the members of the Commission as individual defendants.

6. The defendant Grand River Dam Authority is a conservation and reclamation district constituting a governmental agency of the State of Oklahoma and a body corporate and politic created and existing by virtue of Article 4 of Chapter 70 of the Session Laws of 1935 of the State of Oklahoma, as amended, 82 Okl.St.Ann. § 861 et seq., and having its domicile and principal place of business at Vinita, Oklahoma.

7. The defendants, Ray McNaughton, H. Eichenberger, Earl Ward, R. P. Colley, and M. Duncan, are the members of the Board of Directors of the Grand River Dam Authority. The defendant, T. P. Clonts’ is the General Manager of the Grand River Dam Authority and the defendant W. R. Holway is the Chief Engineer of said Authority.

8. The defendant Massman Construction Company, Inc., a corporation, duly organized and existing under the laws of the State of Missouri, is the general contractor with said Authority for the construction of the dam hereinafter referred to, and is doing business in the State of Oklahoma.

9. The defendant First National Bank of Miami, is a national banking association duly organized "and existing under the laws of the United States, having its principal place of business at Miami, Oklahoma, and *264 is trustee under a certain indenture of <rust, dated as of April 1, 1938, entered into by and between said bank and said Authority and pursuant to which there have been issued and by which there have been secured the bonds of said Authority hereinafter referred to and now held by the United States. Said indenture of trust, Government Exhibit 6, is incorporated in these findings by reference.

10. During the early fall of 1937, the United States, by its Federal Emergency Administrator of Public Works, acting with the approval of the President, and pursuant to the provisions of Title II of the Act of Congress of June 16, 1933, and all acts amendatory thereof and supplementary thereto, 40 U.S.C.A. § 401 et seq., made an allotment to the defendant Grand River Dam Authority to aid in financing the construction of a dam on the Grand River in the State of Oklahoma, together with hydro-electric generating plant and transmission lines, including necessary equipment and the acquisition of the necessary land and rights of way therefor.

11. The purpose of said dam was to provide water storage for flood control and hydro-electric power development. Sa-id allotment was for a loan in an amount of $11,563,000 and for a grant in the amount of forty-five per cent of the cost of the project, but not to exceed $8,437,000.

12. On October 16, 1937, the United States by its Federal Emergency Administrator of Public Works, made a formal written offer to the defendant Grand River Dam Authority pursuant to said allotment and said offer was accepted in writing by the Authority on that date.

13. The acceptance of said offer (as modified by subsequent waivers) contained a covenant obligating the Authority to complete the project, including the dam to a height of 755 feet, not later than March 30, 1940. Said offer, as modified by all subsequent waivers, Government Exhibit 2, and said acceptance, Government Exhibit 3, are incorporated in these findings by reference.

14. Pursuant to its obligation under said offer and acceptance, the United States has purchased and is now the owner and holder of $11,563,000 aggregate principal amount of the bonds of the defendant Grand River Dam Authority issued pursuant to and secured by said indenture dated as of April 1, 1938, being all such bonds outstanding.

15. The United States is now the holder of all outstanding bonds and coupons issued by the defendant Grand River Dam Authority pursuant to and secured by said indenture.

16. All of said bonds were approved, Government Exhibit 4, incorporated herein by reference, as to legality and validity by the defendants Williamson as Attorney-General of the State of Oklahoma and ex-officio Bond Commissioner of the State of Oklahoma.

17. Such bonds are secured by a first and prior, effecting pledge of, being payable solely from the revenues of the Authority, and as a prior and preferred lien thereon from whatever source derived, including all revenues received from the flood control and hydro-electric project after payment of reasonable and proper expenses of maintenance and operation. The sole and prior and exclusive security for said bonds is the revenue to be derived as aforesaid from said project, and in the event o'f a default under the indenture securing said bonds the United States may cause to be appointed a receiver to take possession of and operate said project for the benefit of holders of such bonds all as in said indenture provided.

18. The United States has. also paid over $5,562,500 of the grant. The remainder of the grant is normally payable upon completion of the project. ;

19. Since the date of said allotment, neither the State of Oklahoma nor any of its agencies, instrumentalities or subdivisions has contributed any funds whatever towards the cost of said project. Prior to the date of the allotment, the Oklahoma Planning and Resources Board paid about $5,000 for preliminary expenses.

20. The defendant Grand River Dam Authority commenced construction of the said flood control and hydro-electric project on or about February 7, 1938, and has now virtually completed the construction of the main dam. As of February 20, 1940, the total amount actually disbursed by said Authority for all purposes in connection with such construction was approximately $14,984,000, and was paid for solely out of funds furnished by the United States by way of the loan and grant above referred to.

21. Prior to construction of said dam, the defendant Grand River Dam Authority secured a license from the Federal Power Commission, an independent agency of the *265 United States, to build said dam on the bed of the Grand River, a tributary of a navigable river of the United States, and to impound the waters of said Grand River for the purposes of the project. Said license, Government Exhibit 6, is incorporated in these findings by reference.

22.

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Bluebook (online)
33 F. Supp. 261, 1940 U.S. Dist. LEXIS 3060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-phillips-oknd-1940.