Voorhies v. Mayor of Houston

7 S.W. 679, 70 Tex. 331, 1888 Tex. LEXIS 998
CourtTexas Supreme Court
DecidedMarch 23, 1888
DocketNo. 2584
StatusPublished
Cited by26 cases

This text of 7 S.W. 679 (Voorhies v. Mayor of Houston) 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
Voorhies v. Mayor of Houston, 7 S.W. 679, 70 Tex. 331, 1888 Tex. LEXIS 998 (Tex. 1888).

Opinion

Stayton, Chief Justice.

This action was brought by appellants to revive a judgment for thirteen thousand six hundred and thirty-nine dollars and sixty cents, interest and costs, rendered in their favor against the appellee in the district court for Harris county, on November 29, 1881. They also seek a writ of mandamus to enforce the payment of the judgment to-be recovered. The judgment which appellants seek to revive and enforce was rendered on past due coupons for interest due on bonds executed July 1, 1876, in pursuance of an ordinance passed December 10, 1875, which was approved by an act of the Legislature passed May 30, 1876.

At the time the ordinance referred to was passed, the appellee had a large outstanding indebtedness, and the purpose of the ordinance was to consolidate this by taking up the outstanding bonds with bonds authorized by the ordinance to issue. The bonded debts of the city, known as the “market house” and “ ship channel” bonds, were not included in the outstanding debts which might be replaced by the bonds authorized by the ordinance to issue. The appellants obtained [334]*334the judgment which they seek to revive and enforce, on coupons to bonds issued under the ordinance referred to in lieu of bonded indebtedness existing before the ordinance was passed.

The ordinance provided “that one per cent on the assessment of the ad valorem taxes of the city shall, and the same is hereby set apart annually, and specially reserved for the purpose of paying the interest and creating a sinking fund for the redemption of the bonds provided for in this ordinance, and be- ■ fore their maturity.” The ordinance further provided, that any sum in excess of that necessary to meet interest should create a sinking fund for the redemption of the bonds to be issued, which might be invested whenever there was as much as i five thousand dollars on hand, in the purchase of bonds of that issue.

The ordinance was expressly made a part of the contract with all persons who should accept bonds authorized by it to issue.. Ebthing had been paid on the judgment sought to be secured, although the tax of one per cent was duly levied for Lha years 1879, 1880, 1881, 1882, 1883 and 1884, and of this there was outstanding and uncollected the sum of one hundred and twelve thousand six hundred and eighty-six dollars. The same tax seems to have been levied for subsequent years. There are past due coupons on the same series of bonds held by appellants, amounting to three hundred and fifty thousand dollars.

It is admitted that the sum to be raised by the one per cent tax authorized by the ordinance is insufficient to pay the interest annually on the series of bonds of which appellants’ are a part. The city levies the one per cent tax and applies the proceeds, so far as collected, pro rata upon all its bonded indebtedness, of which there is other than that evidenced by the series of bonds issued, under the ordinance before referred to. The only other ad valorem tax levied by the city is a tax of one per cent which it levies and applies to its current expenses that can not be met through a less tax.

It is shown that the city has no means of paying its bonded indebtedness otherwise than through an ad. valorem tax, and that it refuses to levy such a tax, for all purposes, in excess of two per cent. The petition prayed for a judgment . for the sum due on the former judgment, and for a writ of mandamus commanding the municipal corporation to collect the uncollected taxes at once, so far as the same can be done, i and out of the collections so made to pay the judgment to be [335]*335rendered, with interest and costs; and in case enough of taxes uncollected can not be collected to satisfy the judgment, that it be commanded forthwith to levy and collect upon property within the city, subject to an ad valorem tax, sufficient to pay the judgment in full.

After entering a judgment in favor of appellants for the sum due them on the former judgment, the judgment proceeds as follows:

“It further appearing to the court that, at the time of the Issuance of the series of bonds, on part of which series this suit is brought, the charter of defendant limited its taxing power to two per cent per annum, and does now so limit it; and it further appearing that said defendant has levied taxes to said limit, the mandamus requiring defendant to levy a special tax sufficient to pay said judgment, interests and costs is hereby denied.

“And it appearing to the court that there remain uncollected under the levies of one per cent laid for series of bonds, of which plaintiffs’ are a part, for the several years 1879, 1880, 1881, 1882, 1883 and 1884, amounting in the aggregate to the sum of one hundred and twelve thousand six hundred and eighty dollars are due and uncollected on account of bond tax, and that plaintiffs’ judgment herein of eighteen thousand one hundred and forty-four dollars is entitled to share pro rata with three hundred and fifty thousand dollars of like series of past due coupons. The court here now orders, decrees and directs that said defendant pay at once to said plaintiffs, or their attorney of record, the sum of five thousand eight hundred and forty-one dollars and sixty-six cents, being said pro rata, and all costs of suit, out of the first moneys collected on account of said tax levies of bond tax for said years 1879, 1880,1881, 1882, 1883 and 1884, after payment of the judgment this day rendered in cause No. 12,044 in favor of Luther C. Voorhies v. The Mayor, etc., of Houston, the payment of which is hereby decreed to have priority over this judgment.”

Ho question exists as to the validity of the debt the appellants seek to enforce, nor of the inability of the appellee to pay the interest on the series of bonds of which the appellants hold a part, with the interest on its other bonded indebtedness, from a tax of one per cent on the property within the city subject to an ad valorem tax.

[336]*336The first assignment of error is: “The court erred in holding that the charter of the city of Houston (defendant herein) limited the taxing power of defendant to two per centum per annum ad valorem of the assessed value of the property of said defendant, the debt for which an additional tax levy was sought having been contracted before the adoption of the Constitution now in force, because the Constitution of the State of ' Texas, article 11, section 6, provides: ‘That counties, cities and towns are authorized, in such manner as now or may hereafter be provided by law, to levy, assess and collect the taxes necessary to pay the interest and provide a sinking fund to satisfy any indebtedness heretofore legally made and undertaken; but such taxes shall be assessed and collected separately from that levied, assessed and collected for current expenses of municipal government, and shall, when levied, specify in the act of levying the purposes therefor; and such taxes may be paid in the coupons, bonds or other indebtedness, for payment of which such tax may have been levied.’ ” ‘

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Bluebook (online)
7 S.W. 679, 70 Tex. 331, 1888 Tex. LEXIS 998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/voorhies-v-mayor-of-houston-tex-1888.