In re City of Rich Hill v. Connelly, 38812.

Citation175 S.W.2d 834
Decision Date06 December 1943
Docket NumberNo. 38812.,38812.
PartiesIn the Matter of the Petition of the CITY OF RICH HILL, MISSOURI, a Municipal Corporation, for a Pro Forma Decree authorizing the issuance of $24,400.00 principal amount of electric plant bonds of said city, CITY OF RICH HILL, v. JOHN A. CONNELLY, Intervener-Appellant.
CourtUnited States State Supreme Court of Missouri
175 S.W.2d 834
In the Matter of the Petition of the CITY OF RICH HILL, MISSOURI, a Municipal Corporation, for a Pro Forma Decree authorizing the issuance of $24,400.00 principal amount of electric plant bonds of said city, CITY OF RICH HILL,
v.
JOHN A. CONNELLY, Intervener-Appellant.
No. 38812.
Supreme Court of Missouri.
Court en Banc, December 6, 1943.

Appeal from Bates Circuit Court. — Hon. Dewey P. Thatch, Judge.

AFFIRMED.

H.E. Sheppard for appellant.

(1) The bonds of the City of Rich Hill in controversy cannot be issued under Section 12, Article X, of the Constitution of Missouri, because the issuance of such bonds would cause the total indebtedness of the city to exceed the five per cent debt limitation imposed by said constitutional provision. Sec. 12, Art. X, Const. of Missouri; Sec. 7368, R.S. 1939. (2) The bonds of the City of Rich Hill proposed to be issued are not electric plant bonds authorized by Section 12a, Article X, of the Constitution of Missouri, and by Sec. 7554, R.S. 1939. Such bonds are unauthorized and void. Sec. 12a, Art. X, Const. of Missouri; Sec. 7554, R.S. 1939; Sec. 48, Art. IV, Const. of Missouri; State ex rel. Blue Springs v. McWilliams, 335 Mo. 816, 74 S.W. (2d) 363; Taylor v. Dimmitt, 336 Mo. 330, 78 S.W. (2d) 841; State ex rel. Spencer v. Anderson, 101 S.W. (2d) 530.

Bowersock, Fizzell & Rhodes for respondent.

(1) Respondent, the City of Rich Hill, agrees with the contention made in Point (1) of appellant's brief, namely, that the bonds in controversy cannot be issued under Section 12, Article X, of the Constitution of Missouri. (2) The bonds of the respondent, City of Rich Hill, proposed to be issued are authorized by Section 12a, Article X, of the Constitution of Missouri, and by Sec. 7554, R.S. 1939. The respondent city is not seeking to issue its bonds in excess of the amount remaining unpaid on the purchase price of the equipment installed in the city's electric plant or for the purpose of curing or validating any illegal obligation previously incurred by the city. The outstanding special obligation of the city, payable solely out of the revenue accruing to the city from the operation of its electric plant, and not from taxation, is valid. State ex rel. Smith v. City of Neosho, 203 Mo. 40, 101 S.W. 99; Bell v. City of Fayette, 325 Mo. 75, 28 S.W. (2d) 356; State ex rel. City of Hannibal v. Smith, 335 Mo. 825, 74 S.W. (2d) 367; State ex rel. Excelsior Springs v. Smith, 336 Mo. 1104, 82 S.W. (2d) 37; Grossman v. Public Water Supply District No. 1 of Clay County, 339 Mo. 344, 96 S.W. (2d) 701; Woodmansee v. Kansas City, 346 Mo. 919, 144 S.W. (2d) 137; Dodds v. Kansas City, 347 Mo. 1193, 152 S.W. (2d) 128; City of Lebanon v. Schneider, 349 Mo. 712, 163 S.W. (2d) 588. (3) The bonds of the respondent City of Rich Hill are being issued for the purpose of purchasing and constructing the electric light plant of the city and are authorized by Section 12a, Article X, of the Constitution of Missouri, and Sec. 7554, R.S. 1939. Bonds may be voted by a municipality under the constitutional and statutory provisions aforesaid for the purpose of purchasing or constructing extensions and additions to an existing plant. already owned by the city, as well as to purchase or construct the original plant. State ex rel. City of Columbia v. Allen, 183 Mo. 283, 82 S.W. 103. (4) The word "construction" includes "reconstruction," "enlargements," "extensions" and other similar terms. State ex rel. Edwards v. Millar, 21 Okla. 448, 96 Pac. 747; Thomason v. Court of County Comrs., 184 Ala. 28, 63 So. 87...

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