Browne v. City of Boston

Decision Date18 June 1901
Citation60 N.E. 934,179 Mass. 321
PartiesBROWNE et al. v. CITY OF BOSTON et al.
CourtUnited States State Supreme Judicial Court of Massachusetts Supreme Court
COUNSEL

H. L. Harding and N. Matthews, for petitioners.

Geo. R Nutter, John G. Palfrey, and Brandeis, Dunbar & Nutter, for defendant Geo. W. Seaverns.

Andrew J. Bailey, for defendant city.

Geo. R Swasey and Wm. P. Thompson, for defendants Callahan and Costello.

OPINION

MORTON, J.

This is a petition under St. 1885, c. 178, § 3, and St. 1898, c. 490, by more than 10 taxable inhabitants of Boston, to restrain the city and its treasurer from purchasing and paying for certain parcels of land in said city, on the ground that the debt limit provided by St. 1885, c. 178, § 2, will be exceeded thereby. The case was heard on the petition, answer, and agreed facts, and reserved for the consideration of the full court. From the agreed facts it appears that the city of Boston owns certain premises, which are occupied and used as an insane hospital, and are under the control of a board of trustees. Prior to October 30, 1899, the trustees 'requested the mayor * * * to make an appropriation to buy various parcels of land * * * for the purposes of the hospital, and among other parcels' the land in question. The mayor laid the communication, as provided by law, before the board of estimate and apportionment. St. 1898, c. 434, § 3. That board made an arrangement with the owners of the land 'by which the city of Boston agreed to buy in the manner hereinafter described, and the owners to sell, said parcels for the following prices.' Then follows a statement of the price per foot of each of the different parcels, amounting in all to $226,000. It was arranged with the owners of the land that they should mortgage the same to third parties for $202,000, payable, with interest, after three years from the conveyance to the city, with a privilege reserved in the mortgages to the owners, their grantees and assigns, to pay the mortgages and interest at maturity, or earlier if they should so desire. These mortgages were to be placed on the land before it was conveyed to the city, and it was arranged that the land should be conveyed subject to them, but that the city should not be mentioned in them, and that the deeds should contain the statement that the city was not to be held liable in any way for the payment of the mortgages, or the interest thereon. The board of estimate passed an order appropriating $24,000 for the purchase of the equity in the land, and authorizing the city treasurer to issue from time to time bonds to that amount for that purpose, and directing the trustees of the insane hospital to expend the appropriation for that purpose. This order was duly submitted by the mayor to the city council, and passed by the board of aldermen and by the common council, and was approved by the mayor prior to December 12, 1899. None of the mortgages had been given or recorded at the time of filing this petition. The officers of the city propose to carry out the agreements that have been made for the purchase of the land, and on the delivery of the deeds the city is to take possession of the land. On October 30th, and since, the borrowing capacity of the city under the statutes limiting its indebtedness was and has been but little over $24,000. The assessed valuation of the land is $33,800, and the owners of it have been admitted as parties to this suit.

It is obvious that, if the arrangements which have been entered into between the city and the owners of the land are valid and, binding, an easy method will be afforded by which cities and towns in this and similar cases can evade the statutes relating to municipal indebtedness. Without...

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