Winston v. Tennessee & Pacific R. R.

60 Tenn. 60
CourtTennessee Supreme Court
DecidedDecember 15, 1873
StatusPublished
Cited by5 cases

This text of 60 Tenn. 60 (Winston v. Tennessee & Pacific R. R.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winston v. Tennessee & Pacific R. R., 60 Tenn. 60 (Tenn. 1873).

Opinion

Freeman, Judge,

delivered the opinion of the Court.

This bill is filed by Winston, and a hundred or more of the taxpayers of Smith County, on behalf of themselves and other taxpayers of said county, to have an order of the County Court of said county declared [64]*64void, submitting tlie question of subscriptions of $300,000 to the Tennessee & Pacific Railroad Co. to a vote of the people of the county, as well as all the proceedings under said order; and also to enjoin the County Court from issuing the bonds of the county for said sum, and the levy of any taxes to pay interest on the bonds, with a prayer for general relief. In short, the object of the bill is to enjoin the subscription, and have it anulled for the reasons set out in the bill, with a perpetual injunction against its collection, or enforcement, as against the county.

Numerous objections are presented to the validity of the proceedings sought to be declared void, which we will notice, as 'far as necessary for the decision of the case in the subsequent part of this opinion.

At present, the question that meets us at the threshold of the discussion is, as to the jurisdiction of the Court of Chancery to entertain the bill, and grant the relief sought. This question is raised by the 17th ground of demurrer, as filed by defendant. It is as follows: “ The Court has no jurisdiction, because there is no law authorizing a contest of such an action in this Court, and the bill on its face shows that the bonds in question have not been called for by the Railroad Company, and fails to show there has been either an issuance of the bonds, or that a tax has been assessed, or effort to levy or assess a tax, to pay the subscription.”

The facts necessary to be stated in order to present this question are, that at the November Term of the [65]*65County Court, 1869, an election was ordered to be held on the 10th of December, 1869, to determine whether the county would subscribe $300,000 stock in the Tennessee & Pacific Railroad Company, payable in bonds of the county. 'An .election was held accordingly on that day, by the Commissioner of Registration, and on the 15th of that month that officer filed his certificate in the Clerk’s office of the County Court, in which he stated that an election had been held in all the districts of the county except one, the eighth — giving the reasons-why no election was held in this district, which need not be noticed here — and stating the result of the election to be, that 950 votes had been voted for subscription, and 920 against it. On the 17th, two days after this return by the Commissioner of Registration was filed, the County Judge of the county, one Whitby, subscribed the amount thus voted to the stock of the company. The bill seeks to declare this subscription void, and have the same cancelled, on the grounds that the supposed election did not confer authority to make it, not being conducted according to law, and that the election did not legally result in a majority of the voters of the county voting for subscription, and because there was no election held in the eighth district. Other grounds are specified, but these are enough for our purpose at present.

By Art. 2, § 29 of the Constitution of 1834, it is provided: “The General Assembly shall have power to authorize the several counties and incorporated towns in this State to impose taxes for county and corporation [66]*66purposes, respectively, in srrch manner as shall be prescribed by law; all property to be taxed according to its value, upon tbe principles established in regard to State taxation.”

In Mayor and Aldermen of Nashville v. Nichol, 9 Hum., 252, and Louisville & Nashville Railroad Co. v. County Court of Davidson County et als., 1 Sneed, 640, it was adjudged that subscription to a Railroad Company was a county or corporation purpose, and in the latter case, that the question of subscribing for stock in such companies might be submitted to a vote of the people, in accordance with what is known as the Internal Improvement Law of 1852, and the authority given to the county, by the Legislature, to impose such taxes in favor of railroads, be made dependent, for its exercise, on the result of a vote of the citizens for or against the proposition. These questions being settled and assumed as the law, it readily appears that there are elements in such an election not found in the ordinary case of an election to fill an office where two or more citizens submit their claims to the decision of the people. It is not a question simply of who shall fill an office, but a means of ascertaining, and giving expression to, the voice of the people of the county, in assenting to, or dissenting from, a proposed contract into which the corporation, or quasi corporation of which they are members, is to enter, but only on condition of assent by a majority of the votes cast, in accordance with the terms of the authority given in the law under which the action of the people is authorized. In short, we [67]*67think it clear that the action of the county in making the subscription to the stock of a company is dependent upon the assent of the prescribed majority, to be ascertained in the manner prescribed by the law for its validity and binding force.

This being so, in any case where the question of the obligation of a contract of subscription is to be settled, because of want of authority on the part of the county to make it, for want of proper assent on the part of the people of the county, the question of the result of what is, by accommodation in the use of terms, called an election, must necessarily be investigated, not under the idea of contesting an election, but for the purpose of ascertaining whether the contract of subscription made has been authorized according to law, and so binding on the county. In this view of the question it will be seen that it is not a question of contesting an election brought into a Court of Chancery, but the question of the validity and obligation of a contract, which by law is made to depend on the assent of the majority of votes given at the ballot box,’ and as a condition to its being made, and that the result and validity of the election is to be ascertained, in order to determine the question whether a binding contract has been made as to .the corporation or county subscribing or proposing to subscribe for stock in the Railroad Company.

On looking at the case of Louisville & Nashville Railroad Co. v. Davidson County et als., we think this is the principle on which the Court went, and the true [68]*68theory of tlie case on this question. There were several cases consolidated and heard together in that case. In two of the cases, commenced by a mandamus, to compel the County Court in one case — Davidson County— to levy the tax ratio, and in the other — Sumner County — to issue bonds, the question of the validity of the election as a matter of law, and on the facts was presented, and decided by the Court, in reaching the conclusion,- that the subscriptions were binding on the counties. In the case of Sumner County it was insisted the election had been carried by fraud, bribery, etc.— which the Court decided the proof did not sustain — and then go on to say in substance, that if the facts alleged had been proven, they would not have invalidated the election. It was also insisted in that case that the vote was taken before the location of the road, and that the order for the election was made by.

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309 S.W.2d 778 (Court of Appeals of Tennessee, 1957)
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304 S.W.2d 515 (Court of Appeals of Tennessee, 1957)
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Bluebook (online)
60 Tenn. 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winston-v-tennessee-pacific-r-r-tenn-1873.