City Council of Montgomery v. Reese

• Decision Date: 20 December 1906
• Parties: CITY COUNCIL OF MONTGOMERY ET AL. v. REESE.
• Court: Alabama Supreme Court

43 So. 116

149 Ala. 188

CITY COUNCIL OF MONTGOMERY ET AL. v. REESE.

Supreme Court of Alabama

December 20, 1906

Appeal from City Court of Montgomery; A. D. Sayre, Judge.

Bill by Essie L. Reese against the city council of Montgomery and others. From a judgment overruling demurrers filed to the bill, defendants appeal. Reversed, and judgment rendered sustaining the demurrers to the bill.

This was a bill filed by a resident citizen, as the owner of property and a taxpayer, to restrain the issuance of certain bonds named therein, and to declare the ordinance authorizing their issuance null and void. The ordinance is set out as an exhibit to the bill; but all that is necessary to be here set out is that it provided for the issuance of bonds to run for 30 years from the 1st day of January, 1907, bearing interest at the rate of 4 1/2 per cent. and payable semiannually. The allegations made by the bill show that the ordinance was in all respects passed as required by law. The equity of the bill is rested on the fact that the bonds were improperly issued under the general law relating to such matters, and that they carried a too high rate of interest, and that they should have been issued under a special law passed by the Legislature authorizing the city of Montgomery to refund its bonded indebtedness. The general law, approved February 26 1903 (Gen. Acts 1903, p. 71), and the special law approved September 26, 1903 (Loc. Acts 1903, p. 615), are made exhibits to the bill. Demurrers were filed to the bill raising the question as to the unconstitutionality of the special or local law. The demurrers were ruled adversely to the city.

C. P McIntyre, for appellants.

Gunter & Gunter, for appellee.

PER CURIAM.

By the act of the Legislature approved February 26, 1903 (Gen. Acts 1903, p. 71), a general law was enacted "to provide for the settlement, adjustment, and refunding of the bonded indebtedness of municipal corporations." By the provisions of this act the municipal authorities of any city town, or village of this state which may have outstanding a bonded indebtedness of any kind are authorized to issue bonds for an amount not exceeding the indebtedness of such corporation proposed to be refunded, in such sums and form to run not exceeding 30 years, and to bear a rate of interest not to exceed 5 per centum per annum. On the 26th of September, 1903 (Loc. Acts 1903, p. 615), a local or special law was...