Carriger v. Mayor of Morristown
Carriger v. Mayor of Morristown
Opinion of the Court
delivered the opinion of the court.
Bill filed on the 15th of September, 1876, by seven tax payers of Morristown against the Mayor and Aldermen of the town and five individuals, holders of bonds of the corporation, to test the validity of the bonds held by them. These bonds were part of 144 bonds of $100 each, executed in the corporate name and issued by the municipal authorities during the years 1868, 1869 and 1870. They were coupon bonds
The first section of the act of March 14, 1868, ch. 102, reads thus: “That the Board of Mayor and • Aldermen [of Morristown] shall have power, for the purpose of making any public improvement that may be deemed necessary for the town, or of acquiring any property for the public use of the town, to issue the bonds of the corporation, bearing interest not to exceed six per cent, per annum, and having ■ not more than twenty years to run; but this authority shall not be exercised unless the ordinance authorizing the same shall first be submitted to the vote of the qualified voters of the corporation, at an election to be held under the direction of said board for that purpose, and after giving ten days notice of the time and place of election by written notices, posted at four public places within the corporation, and if a majority of those voting decide against the proposition, the bonds shall not be issued.”
At a meeting of the Board of Mayor and Aider-men of Morristown, held on the 1st of May, 1868, the following resolutions were passed:
“Resolved, by the Mayor and Aldermen of said corporation, that the Mayor be, and is hereby fully au-*246 tborized to employ an agent for said corporation to have two hundred bonds of said corporation struck off in good style in New York, of the denomination of one hundred dollars each, bearing six per cent interest, and running ten years, the interest to be paid semi-annually at some designated bank in New York City; and that he be further authorized to procure a seal for the use of the corporation.
“Resolved, furthermore, that notice be given to the qualified voters of the corporation, as required by act of the Legislature, passed March 14, 1868.”
On the 20th of May, 1868, at a meeting of the Board of Mayor and Aldermen, the following proceeding was had:
“Whereas, the election returns now before the board show that the law of March 14, 1868, passed by the Legislature, was fully complied with, and that the votes cast at said election on the 13th inst., at the Mayor’s office, were unanimously cast in favor of the bonds of the corporation of Morristown, Tenn., being issued in accordance with said law; therefore, be it
“Resolved, by the Board, That the Mayor and Recorder be, and are hereby, authorized to sign and seal as many bonds as the board may, from time to time, deem necessary.”
Placed thus in juxtaposition, and read together, the law and the two ordinances seem to form a connected chain, the meaning and intent of which are plain enough. The act of the Legislature, as the evidence shows, was drawn by the Mayor of' the corporation, and sent to the Legislature to obtain authority to is-
It is argued that the election having been held when a large part of the property holders and citizens of the corporation vrere disfranchised by legislative acts passed by virtue of the amended Constitution of 1865, a revolutionary amendment of the fundamental law of the State worked out through a few
But the argument most relied on and pressed with earnestness and learning by the eminent counsel of the complainants is, that the ordinance of the 1st of May, 1868, is not an ordinance to take the sense of the voters as to the issuance of bonds under the statute, but only to ascertain their wishes as to the-propriety of employing' an agent to be sent to New York to have bonds struck off, and to procure a corporate seal. Such an election would, however, have been without authority and without meaning. And the argument would require the court to follow the letter at the expense of the spirit of what was done; to stick in the bark instead of going to the core. Nay, more, the court must actually shut its eyes to what the ordinance expressly declares, namely, that notice shall be given to the voters of the corporation “as required by act of the Legislature, passed March 14, 1868.” That act authorizes the board to issue bonds provided the ordinance is first submitted to the qualified voters and approved by a majority of those voting. The ordinance, in addition to authorizing the Mayor to employ an agent to have bonds struck off
It is said that the bonds authorized to be struck off were to have the interest made payable at some designated bank in New York City, while the bonds in controversy have their interest coupons payable at the treasurer’s office in Morristown. But the proposition to be submitted to the people was, according to the statute, the issuance of bonds. The place at which the interest should be made payable was a matter of detail for the board, not the people. Ross v. Anderson county, MS.
The bill raises no question of usury as against the individual defendants touching the bonds held by them, even if such a point could be made in relation to such securities and by the complainants. Doak v. Snapp, 1 Col., 180; Cromwell v. County of Sack, 96 U. S., 51.
Dissenting Opinion
delivered the following dissenting • opinion :
On the 14th of March, 1868, the Legislature of the State, then in session, undertook to amend the charter of the town of Morristown in the following language:
“Be it enacted by the General Assembly of the State of Tennessee, that the Board of Mayor and Aldermen shall have power, for the purpose of making any public improvement that may be deemed necessary for the town, or of acquiring any property for the public use of the town, to issue the bonds of the corporation, bearing interest not to exceed six per cent, per annum, and having not more than twenty years to run; but this authority shall not be exercised unless the ordinance authorizing the same first be submitted to the vote of the qualified voters of the corporation at an election to be held under the direction of said board for that «purpose, and after giving ten days notice of the time and place of election by written notices, posted at four public places within the corporation; and if a majority of those voting decide-against the proposition, the bonds shall not be issued.”
On the 1st of May, 1868, the board passed the following resolution, viz:
“jResolved, by the Mayor and Aldermen of said corporation, that the Mayor be and he is hereby fully authorized to employ an agent for said corporation to have two hundred bonds of said corporation struck off in good style in New York, of the denomination of*252 one hundred dollars each, bearing six per cent, interest, and running ten years, the interest to be paid semi-annually at some designated bank in New York City; and that he be further authorized to procure a seal for the use of the corporation.
“Resolved, furthermore, that notice be given to the qualified voters of the corporation, as required by act of Legislature, passed March 14, 1868.
“Signed, John Murphy,
“ M. 11. Murrell, Mayor.
“ Recorder and Treasurer.”
On May 20, 1868, the board again met and recorded on their minute book the following:
“Whereas, the election returns now before the board show that the law of March 14, 1868, passed by the Legislature, was fully complied with, and that the votes cast at said election on the 13th inst. at the Mayor’s office, were unanimously cast in favor of the bonds of the corporation at Morristown, same being issued in accordance with said law; therefore, be it
“Resolved, that the Mayor and Recorder be and are hereby fully authorized to sign and seal as many bonds as the board may from time to time deem necessary.”
Subsequently and at different times the Board issued one hundred and forty-four bonds, each for one hundred dollars, and payable at the treasurer’s office in Morristown.
The bill is filed to enjoin the collection of and to declare the bonds void. In the progress of the cause the deposition of John Murphy, who was the
Complainants insist, first, that the disfranchising acts of June 5, 1865, and of May' 3, 1866, were, enforced at the election of May 13, 1868, and that the exclusion of a large majority of. the voters and tax payers from voting rendered the election void, the acts of June, 1865, and May, 1866, being unconstitutional and void. Second, that no ordinance, as required by the amended charter, for the issuance of bonds was ever passed, and of course none was ever submitted to a vote of the people.
In support of the first position, art. 4 sec. 1 and art. 11 sec. 3 of the Constitution of 1834 are cited and relied on. The first declares “that every free white man of the age of twenty-one years shall be entitled to vote.” The second provides the mode of amending the Constitution.
The convention of the 9th of January, 1865, was
The military Governor of the State, on the 25th day of February, announced that although complete returns had not been- made as provided, yet the articles amendatory of the Constitution of the State and the schedule thereto appended had been adopted by the people. Under the authority of the 9th section of the schedule, the Legislature passed the disfranchising statutes of 1865 and 1866. It is very clear that in these several proceedings neither the convention nor Legislature observed the ordinances of the Constitution.
While, perhaps, the military power in possession and control of territory may make such laws as it may deem necessary for the government of that territory during its occupation, it is certain that when peace is restored such laws cease to operate and are abrogated irpso jacio. So that, while in the opinion of the writer there was no legal authority for the call of the convention or its action, and as a consequence, that the disfranchising acts were absolutely void, yet, however this may be, it is clear these laws were not in lawful force at the date of the amendment of the charter of the corporation of Morristown,
It is argued for defendants that, disregarding the schedule of 1865, the act amending the charter of Morristown may be sustained under the Constitution of 1834, and the election of May 13, 1868, held to be regular and valid. This position is met in the fact that the qualification of voters prescribed by the disfranchising acts was strictly enforced, as appear^ from the testimony of Murphy, already alluded to, and substantially admitted in the answers, and that at least two-thirds of the citizens entitled to vote were deprived of that privilege. These disfranchise acts were, in my opinion, unconstitutional, because in substance bills of attainder as well as post facto legislation. And when the question is presented directly, as I take it to be in this case, the courts must pass upon it or the country is without relief, a condition not recognized by law. The responsibility is one the courts cannot escape by resort to technicality. Aside from these questions the one recurs, was there an election such as contemplated by the act of amendment? Was there an ordinance authorizing the issuance of bonds submitted to the vote of the qualified voters of the corporation? There was no meeting of the board between the first and twentieth days of May, and as we have seen the only business done by the board on the first of May was the adoption of
The fact that citizens have,, on a few occasions, petitioned the board to issue bonds, or that the cor
It is, to my mind, clear beyond question that not only no election upon the question of the issuance of bonds was ever held, but also that no ordinance in any wise or in the least pertaining to their issuance, was ever passed so as to authorize an election. The only ordinance submitted was the ordinance to employ an agent to have blanks printed in New York. It is also clear that the recitals of the 20th of May, that an election had been- held as required by the statute, is not only untrue in fact, but was fraudulently made, the officers having full knowledge of all the facts.
The argument that this recital is conclusive is untenable. Such a rule would enable the officers of municipal corporations to issue bonds to any extent, regardless of the knowledge and wishes of the people and tax payers. Innumerable frauds, with their oppressions and ruin, would be perpetrated and inflicted
If the course of decision in the National Tribunal has been in a direction contrary to these views, we are not bound to follow, and should not do so; we are construing an act of our State Legislature, and ought to give to it the construction intended by its makers; it is an act conferring a power that did not and could not otherwise exist, an' act directly affecting
In this case we have some of the consequences of such departure, for the act, in positive language, restricts the issuance of bonds to purposes of improvement and the acquisition of property for the corporation, yet we see the very organization which drafted the act and procured its passage issuing bonds and with them paying debts of the corporation created before the existence of the law, and giving two dollars of the new bonds for one dollar of the antecedent debts — a palpable fraud.
If the question was one of that class in which the decisions of the United States Supreme Court were binding, I would follow them, whatever my views of their soundness and propriety might be. But as already seen, the question is one of construction of a statute of our State, involving no question under the Constitution of the United States. Indeed, upon the construction of a State statute, the well settled rule is, ■the construction by the State court must prevail.
In none of the cases cited, however, by the defendants, have the courts gone to the extent of holding bonds to be valid where there is nothing except
For these reasons I think the decree of the Chancellor should be affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.