City of Gastonia v. Citizens' Nat. Bank
| Citation | 81 S.E. 755,165 N.C. 507 |
| Decision Date | 13 May 1914 |
| Docket Number | 492. |
| Parties | CITY OF GASTONIA v. CITIZENS' NAT. BANK. |
| Court | United States State Supreme Court of North Carolina |
Appeal from Superior Court, Gaston County; Adams, Judge.
Controversy without action by the City of Gastonia against the Citizens' National Bank. Judgment for the plaintiff, and defendant appeals. Affirmed.
Under Priv.Laws 1913, c. 180, authorizing a certain city to issue bonds for specified purposes, the city can pay the interest on the bonds out of its general revenues, if sufficient for that purpose, but cannot exceed the charter limits of taxation without special authority from the General Assembly.
The purpose of this proceeding is to determine the constitutionality of, and to construe, an act of the General Assembly (chapter 180, Private Laws of 1913), which reads as follows:
"An act to authorize the board of aldermen of the city of Gastonia to issue bonds in an amount not exceeding $100,000 for street, sidewalk, and highway improvements, graded schools, waterworks, sewerage, and electric lights.
The general Assembly of North Carolina do enact:
Section 1. That for the purpose of grading, paving and otherwise improving the streets, sidewalks, and highways of the city of Gastonia; for erecting new graded school buildings and making improvements and additions to those already erected; for the extension of the system of waterworks, sewerage, and electric lights, the board of aldermen of said city is hereby authorized and empowered to issue bonds of the said city in an amount not exceeding one hundred thousand ($100,000) dollars, bearing interest from the date thereof not exceeding five (5) per centum per annum, with interest coupons attached, payable semiannually. That said bonds shall be made payable at such time and place as may be determined upon by said board of aldermen, but the time of the payment of the principal of said bonds shall be fixed at not more than thirty (30) years. The bonds shall in no case be sold hypothecated, or otherwise disposed of by the board of aldermen for less than par value, and the money arising from the sale thereof shall be used for the purposes above stated and no other, in such proportion for each purpose or object herein named as said board may fix and determine.
Sec. 2. That the said bonds shall be issued whenever said board of aldermen of said city shall declare by an ordinance duly adopted that it is necessary for the public welfare and interest that said bonds shall be issued for the purpose set forth in section one hereof.
Sec. 3. That when said board of aldermen shall declare that it is necessary for the public welfare and interest that said bonds be issued as provided in section two hereof, then said board of aldermen shall issue said bonds, and they shall be signed by the mayor, attested by the treasurer of the said city, and sealed with the corporate seal of the city, and said bonds and their coupons shall be exempt from city taxation until they have become due, and the coupons shall be received in payment of city taxes.
Sec. 4. That this act shall be in force and effect from and after its ratification.
Ratified this the 1st day of March, A. D. 1913."
In pursuance of said act, the board of aldermen adopted this ordinance:
"Section 1. That it is necessary for the public welfare and interest that bonds of the city of Gastonia be issued in the amounts and for the purpose hereinafter set forth.
Sec. 2. That there be issued the negotiable coupon bonds of said city in the aggregate amount of $99,000, consisting of 50 bonds of $1,000 each, numbered 1 to 50, both inclusive, and 98 bonds of $500 each, numbered 51 to 148, both inclusive, which said bonds shall bear date of May 1, 1914, shall mature May 1, 1944, without option of prior payment, and shall carry interest at the rate of five per centum per annum, payable semiannually on the first days of May and November of each year; such interest to be evidenced by coupons to be attached to said bonds, both principal and interest to be payable at the National Park Bank in the city of New York, state of New York.
Sec. 3. That $74,000 of said bonds, consisting of bonds numbered 1 to 98, shall be issued for the purpose of grading, paving and otherwise improving the streets and sidewalks of said city, and that $25,000 of said bonds, consisting of bonds numbered 99 to 148, shall be issued for the purpose of extending the system of waterworks, sewers and electric lights of said city."
The court rendered judgment: ...
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