21 Idaho 783 | Idaho | 1912
Lead Opinion
This action was instituted in the district court by the plaintiff as a taxpayer against the mayor and members of the common council of Boise City, to enjoin and restrain them from holding a city election under and in pursuance of a proclamation issued by the mayor on March 4, 1912, which proclamation was made in pursuance of the provisions of the act of the legislature, approved March 13, 1911 (1911 Sess. Laws, p. 280), known as the Black Law or the commission government act. The trial court denied the application, and the plaintiff has appealed.
In addition to counsel who represent the respective parties to this action, Gustave Kroeger, H. S. Kessler and Frank Martin, as amici curiae, appeared and were allowed to make oral argument and submit a brief in support of the judgment of the lower court; and McCready Sykes appeared and made argument and filed a brief as amicus curiae in behalf of the appellant.
Amici curiae have raised the point that the appellant does not show such interest as to enable him to maintain an action to enjoin the holding of an election, — that the question involved is a purely political question, and a taxpayer as such has no individual or personal right to maintain an action to restrain or enjoin the exercise of the political power of the municipality. In support of this position, counsel has cited the court to the case of City Council of McAlester v. Milwee (Okl.), 122 Pac. 173; 2 Joyce on Injunctions, pp. 2033-2037; 22 Cyc. 885. In view of the public importance of having the questions raised in this case decided, and for the further reason that this question was not raised in the trial court, we have concluded to reserve, our judgment on the point raised and pass directly to a consideration of the merits of the ease.
Now, we have the following things appearing clearly from the house journal entries: First, that amendments to the bill were recommended by committee of the whole; second, that these amendments were printed before they were given a first reading; third, that the rules and the provisions of the constitution were suspended with reference to the second reading; fourth, that the bill was read at length and passed by an aye and nay vote and thereupon transmitted to the senate; fifth, that the senate passed the bill as it came from the house and returned the saíne to the house. The house journal again, under date of March 4th (House Journal, p. 619), contains a report from the committee on engrossed and enrolled bills, réporting House Bill No. 233 as having been correctly “enrolled,” and immediately following this entry the journal shows that “the speaker in the presence of the house signed the following bills .... 233.”
We fail to find wherein the legislature in the passage o£ this act has departed in any substantial manner from the method prescribed by the constitution for the passage and enactment of bills. It seems to us that the journal entries show a substantial compliance with the provisions of see. 13, art. 3 of the constitution. It also complies with the holdings of this court in Cohn v. Kingsley, 5 Ida. 430, 49 Pac. 985, 38 L. R. A. 74, and Tarr v. Western Savings & Loan Assn., 15 Ida. 751, 99 Pac. 1049, 21 L. R. A., N. S., 707. It is true ihat the court indulged in considerable dicta in the Cohn-Kingsley case which was in no way essential to the decision of that case and to which we would not feel disposed to give our approval, but we would not be inclined at this time to depart from the general rule there enunciated that the court may look to the journal. It would certainly be a remarkable and appalling situation if in the rush, hurry and turmoil of the closing hours of a legislative session a purported bill could be engrossed, certified and filed with the secretary of state and become a law which in fact had never passed the legislature nor been considered by it, and the journals clearly
“The legislature shall provide by general laws for the incorporation, organization and classification of the cities and towns, in proportion to the population, which laws may be altered, amended, or repealed by the ■ general laws. Cities and towns, heretofore incorporated, may become organized under such general laws, whenever a majority of the electors at a general election, shall so determine, under such provisions therefor as may be made by the legislature. ’ ’
In Kessler v. Fritchman, ante, p. 30, 119 Pac. 699, this court, in discussing the same question here involved and considering the foregoing provisions of the constitution, said:
“Under the constitution the legislature is clearly authorized to classify towns, cities, and villages of the state according to the population, and while the legislature by general laws has made a classification of cities, tpwns, and villages, this would*794 not preclude or prevent the legislature in enacting the law now under consideration, and the reclassification of cities, towns, and villages as cities, according to population, as a prerequisite to adopting the form of government provided in the act now under consideration.”
Without further comment on this constitutional provision, suffice it to say that we are still content with our holding to the effect that the act of March 13, 1911, known as the commission government act, is not in conflict with this section of the constitution, and 'it was within the power and authority of the legislature to enact the same.
See. 3 of the act in question provides as follows: “All general laws of the state of Idaho governing or pertaining to such cities and not inconsistent with the provisions of this act, shall apply to and govern cities organized under this act; Provided: That no provisions of any special charter or other special act or law which any such city may be operating under at the time of its becoming organized under this act, shall thereafter be applicable to such city while it is operating under the provisions of this act.”
Now, it is contended by counsel for appellant that the word “such” as used in the foregoing statute refers to the particular city adopting the new form of government, and that since a special charter city is not governed by any general laws or any laws other than the special charter, the act cannot therefore apply to such cities. It should be borne in mind that this act specifically provides “that no provisions of any special charter or other special act or law which any city may be operating under at the time of its becoming organized under this act, shall thereafter be applicable to such city while it is operating under the provisions of this act.” This shows clearly that it was intended that the act should apply to special charter cities, and renders it reasonably certain that the word “such” in the preceding portion of the section cannot mean what is contended for it by appellant, but, on the contrary, means a city of like size under the “general law” classification. It should also be remembered that sec. 1 of the act specifically provides that it shall apply ,to “any city
The question next arises as to the class to which Boise City would properly belong under the general laws of the state. Sec. 2222 of the Rev. Codes provides as follows: “Any town or village containing not less than two hundred nor more than one thousand inhabitants, now incorporated as a city, town or village, under the laws of this state, or that shall hereafter become organized pursuant to the provisions of this title, and any city of the second class which shall have adopted village government as provided by law, shall be a village.....” This section then provides that at the time of its adoption all towns or villages then incorporated containing not less than 200 nor more than 1,000 population should thereafter be known as villages and be governed by the statutes prescribing the authority, powers and duties of village governments. It also provided that any town or village containing a population of not less than 200 nor more than 1,000 might at its pleasure become incorporated under the provisions of the village government act. The act, however, contains no provision prohibiting such a village from continuing to exercise the powers and authority of village government merely.by reason of its growth exceeding the maximum population of 1,000, nor did it provide any compulsory process or method whereby such a village should be compelled to take on any new or different form of government upon reaching the maximum population of 1,000. Sec. 2170 of the Rev. Codes provides as follows:
*796 “All cities, towns and villages containing more than one thousand and less than fifteen thousand inhabitants shall be cities of the second class, and be governed by the provisions of this chapter, unless they shall adopt a village government as hereinafter provided.”
It will be noticed from this section that all cities, towns and villages containing more than one thousand and less than fifteen thousand inhabitants become cities of the second class. Now, the legislature at the time of the adoption of the foregoing statute failed to make any specific provision for the classification, organization or government of cities with a population in excess of 15,000. This was probably due to at least two reasons: First, that the state did not at that time have any city organized under the general laws with a population of 15,000; and, secondly, the lawmakers probably intended that in the event any city should grow to that size, it could and should continue to exercise the powers and functions of a city of the second class. It is certain, at any rate, that they did not provide any other form of government or any other class for a city of greater population, nor did they anticipate that a city should become disorganized or disincorporated by reason of a growth which might cause its population to exceed 15,000. The same laws that were made applicable to govern such a city when it reached a population of 15,000 would be equally applicable when it reached a population of 15,100. Now, then, we find that Boise City, at the time it voted to suspend its charter and adopt the commission form of government was a city with a population in excess of 15,000. The question, therefore, arises: To what class would Boise City have belonged if it had been organized and operating under the general laws as they then existed ? The answer is inevitable, that it would have been a city of the second class and would have belonged in that class. That was the highest class city known to the general laws of the state, and the laws applicable to cities of the second class would have been applicable to Boise City had it not been operating under a special charter. It will be no more difficult now for the officers of Boise City, acting under the commission govern
There might be some good reason for the argument of counsel for appellant that there is uncertainty or obscurity in the act as to what general or other laws aside from the commission act should govern such cities, if it were not for the fact that sec. 3 specifically provides that no provisions of a special charter shall apply after a special charter city has adopted the new organization. If such a city is not to apply any of the provisions of its special charter, then .it is clear that the 'legislature intended that it should apply the provisions of the general law applicable to a city of the class to which it did belong or would have belonged under the general laws. (Kessler v. Fritchman, ante, p. 30, 119 Pac. 699.)
The vital question urged is that under the bonding acts special provision is made for the levying and collection of an annual tax for the payment of interest and raising a sinking fund for the final redemption of the bonds, and that these provisions became a part of the contract under which the city sold the bonds, and that they are impaired by the adoption of this new form of government, for the reason that the commission government act contains no provision for levying and collecting a tax to meet these obligations. It is further argued that the commission government act provides a method whereby all ordinances may be submitted to a popular vote, and that, although the city council might make a tax levy or be compelled by the courts to make such levy, still the people might refuse to cast a favorable vote, and there would be no method whereby a levy could be enforced and a tax could be raised to meet these obligations.
There are several reasons which to our minds satisfactorily answer these contentions. In the first place, it is a well-settled rule in this country that these municipal bond issues create contract obligations, and constitute a contract between the municipal corporation and the purchaser of the bonds. It is equally true that the remedies given by law for the enforcement of these contracts and the levying and collection of taxes to meet such obligations cannot be altered or diminished so as to impair the substantial rights or interests of the holder of such obligations. (Von Hoffman v. City of Quincy, 4 Wall. (U. S.) 535, 18 L. ed. 403; see notes and citations, 6 Notes to U. S. Rep. 632, and note, p. 706, 1 Supp. U. S. Notes.) If, therefore, the act here in question attempts to repeal the remedy given the bondholder by the ‘ ordinances which authorized the issuance of the bonds and provided for the levy
Now, let us answer the contention made with reference to the referendum submission of a tax levy ordinance. An examination of the different provisions of the statute as embodied in sees. 25, 26, and 74 convinces us that it was the intention of the legislature to exclude “ordinances making the annual tax levy and appropriations” from the operation of the referendum provision (sec. 74, p. 313, 1911 Sess. Laws). Sec. 25 provides for the submission of any ordinance to a vote of the people, provided a proper petition therefor is filed with the clerk “prior to the date when any ordinance shall take effect”; and sec. 26 provides that the council of its own motion may submit any proposed ordinance or measure to a vote of the people in the same manner and with the same
No sufficient or valid objection has been called to our at- • tention to justify us in holding the act in question invalid or unconstitutional. It follows that the judgment should be affirmed, and it is so ordered. Costs awarded in favor of respondent.
Dissenting Opinion
Dissenting. — I am unable to concur in the conclusion reached by the majority of the court. I concede that the act known as the Black Law was passed by both houses of the legislature in substantial compliance with the provisions of the constitution in regard to what the journals of the two houses must contain, but that admission alone does not go to the constitutionality of the provisions of the act
(1) It is provided by said sec. 1, art. 12, of the constitution, that “the legislature shall provide by general laws for the incorporation, organization and classification of the cities and towns in proportion to the population,” and in compliance with said provision, the legislature has classified municipalities into villages, cities of the second class and cities under special charter. It was the evident intention to provide a fourth classification under the Black Law.
The third section of the Black Law provides: “All general laws of the state of Idaho governing or pertaining to such cities and not inconsistent with the provisions of this act, shall apply to and govern cities organized under this act.” It is conceded that there were no general laws of the state of Idaho governing or pertaining to Boise City at the time of the enactment of the Black Law, except sec. 2239, Rev. Codes, which provides that' city councils, etc., of cities, towns and villages theretofore incorporated under special or general laws, or hereafter incorporated, are vested with authority and power to regulate or suppress and prohibit certain criminal acts. Boise City was organized and governed by a special charter, which charter could not be amended or changed by general law. And it is especially provided in said section 3 of the Black Law, “That no provisions of any special charter or other special act
It appears from the conflicting provisions of the Black Law and its incongruities that it was hastily and carelessly drawn and will require legislation by this court to make it effective.
It will be observed by the adoption of the Black Law, Boise City would be deprived of the rights and powers now exercised under its special charter and essential to the maintenance of municipal government, as no rights and powers other than as above mentioned are conferred by said act upon Boise City for the reason that no general laws are applicable thereto. The Black Law was not intended of itself to be a complete law for municipal government, but had to be supplemented by the general laws by which the city adopting it was governed. Boise City was not under the general laws and was not a city of the second class, and under the law it
The main object or purpose of the Black Law was to make all of the powers of the city council subject at all times to popular referendum. It was to place the mayor and common council in a position so that they could not pass an ordinance and make it effective without referring it to a vote of the people, provided the people so desired. It provides for both the initiative and referendum.
(2) The next point is, Does the Black Law impair the obligation of contracts, and for that reason is it repugnant to the provisions of sec. 10, art. 1, of the federal constitution, which-provides, among other things, that no state shall pass any law impairing the obligation of contracts?
The majority of the court holds that the Black Law does not impair the obligation of contracts. It is admitted that Boise City has a large amount of indebtedness incurred under the provisions of its charter, and the charter provides adequate means whereby the levying and collecting of taxes to pay the interest and principal of such bonds was a duty imposed on the city council and was a duty that the council could be compelled by mandamus to perform. Subd. 10 of sec.- 50 of said charter provides that the proper officers of said city must continue to assess and collect, on all taxable property within the limits thereof, the necessary taxes to pay said bonds and interest as the same become due.
It is a well-settled rule, and clearly stated in Von Hoffman v. City of Quincy, 4 Wall. (U. S.) 535, 18 L. ed. 403, as follows:
‘1 Where a statute has authorized a municipal corporation to issue bonds and to exercise the power of local taxation in order to pay them, and persons have bought and paid value for bonds issued accordingly, the power of taxation thus given is a contract within the meaning of the constitution, and cannot be withdrawn until the contract is satisfied. The state and the corporation in such a case are equally bound. ’ ’
The Illinois legislature attempted in the case of Von Hoffman v. City of Quincy, supra, to change the method of levying sufficient taxes for the payment of the city’s bonded indebtedness without substituting therefor a remedy as efficient as the law provided when the bonds were issued, and that act was held by the supreme court of the United States to be absolutely void.
While the Black Law provides for a mayor and council, it does not charge the council with the duty of levying taxes to meet the bonded indebtedness or any indebtedness. The majority opinion quotes from sec. 3 of the Black Law, whereby it is provided that all rights and property of every description which are vested in any city under its former organization shall vest in the same under the organization contemplated by said act, and that such new organization
Sec. 25 of the act provides as follows: “If, prior to the date when any ordinance shall take effect, a petition, which petition, and its requirements shall be substantially as required by the provisions of sec. 17 of this act, with the necessary changes made therein to meet the needs of this section, signed by qualified electors equal in number to twenty-five (25) per centum of the entire vote east for mayor at the last preceding general municipal election, shall be filed with the clerk protesting against the enactment of such ordinance, it shall, by the filing of such petition, be suspended from taking effect.....Thereupon the council shall immediately reconsider such ordinance, and, if it do not entirely repeal the same, shall submit it to popular vote at the next municipal election; the council, in its discretion, may call a special election for that purpose; and such ordinance shall not take effect unless the majority of the qualified electors voting thereon at such election shall vote in favor thereof.”
This section also emphasizes the carelessness with which said act was drawn. It provides that the petition referred to therein shall be substantially as required by the provisions of sec. 17 of said act. Turning to sec. 17, we find that it does not refer to petitions at all, but provides for the general and special meetings of the council and the time for holding the same, and contains nothing in regard to petitions.
It is evident in case the council levies a tax to meet the requirements of any bond issues, their action may neverthe
But it is contended that see. 74 of the Black Law provides that “Ordinances making the annual tax levy and appropriations shall take effect immediately upon their passage,” and it is urged that when they take effect it is too late to refer them to a vote of the people. Conceding that, there are various ways by which the provisions of said section might or could be evaded. First, it is not required bjr law that a tax levy to meet the requirements of a bond issue shall be a part of the “annual tax levy,” and the council might, if it chose, make such levy at a separate and different meeting:, And again: See. 26 of said act provides that “The council, of its own motion, may submit to popular vote, for adoption or rejection, at any election any proposed ordinance or measure [no exception] in the same manner and with the same force and effect as provided in this act for their submission on petition.” That section places it in the hands of the council of its own motion to submit to popular vote “any proposed ordinance or measure” in the same manner and with the same force and effect as provided in said act for their submission on petition. Supposing the council should submit the ordinance for the purpose of levying a
When this law was submitted to the people of Boise City for adoption or rejection, the whole law was submitted, and the history of that election shows that one of the main inducing causes of its adoption as proclaimed by its advocates was that under this law the sole power of legislation and of conducting the city’s business would be vested in the people of the city. And no doubt many of the people believed from the statements made that if the Black Law were adopted, an opportunity would be given to abrogate- or repudiate certain contracts, such as the lighting contract which had been recently entered into by the city and of which some people did not approve.
Under the Boise City charter, the legislature had provided for a mayor and common council, always amenable to the process of mandamus. This was the remedy and a .part of the contract on which the bondholders and creditors of the municipality relied. In its place, under the Black Law, no officer is amenable in any practical way to the process of mandamus so far as the passage of ordinances is concerned, but the ultimate power over all ordinances and other measures is vested in the decision of the electors of the city. The only power vested in the council is such power as the people choose to leave with it. The creditors of the city had a contract they could enforce in the courts under the charter, but under the provisions of the Black Law'the enactment of ordinances levying taxes for the purpose of paying the indebtedness may be left to a vote of the people, in case the council desire to leave it with the people or in case the people desire to vote upon it. Under such a condition, what becomes of the contract right of the bondholders? It is a mere hope or expectation that the people will never vote to
The court, in Von Hoffman v. City of Quincy, supra, said: “When the bonds in question were issued there were laws in force which authorized and required the collection of taxes sufficient in amount to meet the interest, as it accrued from time to time, upon the entire debt. But for the act of the 14th of February, 1863, there would be no difficulty in enforcing them. The amount permitted to be collected by that act will be insufficient.....A right without a remedy is as if it were not. For every beneficial purpose it may be said not to exist. It is well settled that a state may disable itself by contract from exercising its taxing power in particular cases. It is equally clear that where a state has authorized a municipal corporation to contract and to exercise the power of local taxation to the extent necessary to meet its engagements, the power thus given cannot be withdrawn until the contract is satisfied.....A different result -would leave nothing of the contract but an abstract right —of no practical value — and render the protection of the constitution a shadow and a delusion. ’ ’
In the state of Louisiana, after an obligation had been incurred, a statute was passed forbidding, among other things, the issuance of a writ of mandate to enforce the tax levy for its payment, and in the case of Louisiana v. Pilsbury, 105 U. S. 278, 26 L. ed. 1090, the court said:
“When the contract was made, the writ [of mandamus] was the usual and the only effective means to compel the city authorities to do their duty in the premises, in case of their failure to provide in other ways the required funds. There was no other complete and adequate remedy. The only ground on which a change of remedy, existing when a contract was made, is permissible without impairment of the contract, is that a new and adequate and efficacious remedy be substituted for that which is superseded. Here, no remedy whatever is substituted for that of mandamus.”
In the last-cited ease the court said: “When the bonds were issued and taken by the creditors a contract was consummated between them and the city as fully as if all the provisions had been embodied as express stipulations in the most formal instrument signed by the parties. On the one hand, the creditors surrendered their debts against the former municipalities; and, on the other hand, in consideration of the surrender, the city gave to them its bonds, which carried the pledge of an annual tax of a specified amount for the .payment of the interest on them, and ultimately of the principal. The annual tax was the security offered to the creditors; and it could not be afterward severed from the contract without violating its stipulations, any more than a mortgage executed as security for a note given for a loan could be subsequently repudiated as forming no part of the transaction. Nearly all legislative contracts are made in a similar way. The law authorizes certain bonds to be issued, or certain work to be done upon specified conditions. When these are accepted, a contract is entered into imposing the duties and creating the liabilities of the most carefully drawn instrument embodying the provisions.”
In Mobile v. Watson, 116 U. S. 289, 6 Sup. Ct. 398, 29 L. ed. 620, the supreme court of the United States said:
“The remedies for the enforcement of such obligations assumed by a municipal corporation, which existed when the contract was made, must be left unimpaired by the legislature, or if they are changed a substantial equivalent must be provided.”
Quoting further from Von Hoffman v. City of Quincy, supra, the court said:
“Nothing can be more material to the obligation than the means of enforcement. Without the remedy the contract may, indeed, in the sense of the law, be said not to exist, and its obligation to fall within the class of those moral and social duties which depend for their fulfillment wholly upon the will of the individual. The ideas of validity and remedy are inseparable, and both are parts of the obligation, which is guaranteed by the constitution against invasion.”
It was held in People v. Bond, 10 Cal. 563, that a creditor has a right to the substance of the contract as he made it. It is his privilege to judge for himself whether it is for his interest for the agreement to be discharged in the particular way stipulated, or in a different mode; and neither the courts nor the legislature can change it in any substantial particular.
The powers of the council under the Black Law are only such as are provided by the grant contained in the law itself, including whatever grants or power contained in the general law are made applicable by the. Black Law, but in no event or under no circumstances do any of the old powers created by the Boise charter survive to the new council, because all of the provisions of the charter were absolutely suspended by said Black Law. As stated by counsel, amicus curiae, we have no fears that the people of Boise would ever vote to repudiate contract obligations; but it is quite possible that irresponsible agitators may call elections on questions involving municipal obligations and thus injure the city’s credit and the value of its securities. Under the Black Law
Said act is repugnant to the provisions of sec. 10, art. 1, of the federal constitution.
In order to sustain said Black Law, my associates had to construe the words ‘‘special election,” as used in sec. 3 of the Black Law, to mean the same as the words “general election,” as used in sec. 1, art. 12, of the constitution; and have also construed the words “less than 15,000 inhabitants” (that being the maximum for second-class cities), to mean twenty or twenty-five thousand, or any number more than fifteen thousand. They have removed the maximum placed by the legislature. They have also been required to construe the phrase, “any ordinance or measure,” as used in sec. 26 of said act, to mean “any ordinance or measure except certain ordinances and measures for levying taxes,” and this construction is judicial legislation, pure and simple. It has construed plain, ordinary words and language to have an extraordinary and unnatural meaning, and carries the rule of construction past any limit, and such construction implies ignorance on behalf of the legislature of the meaning of plain and simple words in common, every-day use.
The court erred in refusing to grant the injunction as prayed for in the complaint.