McVickers v. Zerger

• Decision Date: 25 February 1964
• Docket Number: No. 40782,40782
• Citation: 389 P.2d 977
• Parties: Ed McVICKERS, Dr. J. B. Miles, Bert Temple, Frank Elkouri, W. A. Cowans, Vaughndean Landes, Wallace Kidd and Ronald Bassett, Plaintiffs, v. Waldo J. ZERGER, Mayor, Melvin R. Allen, Vice-Mayor, Carl Miller, Councilman, J. L. Welch, Councilman, Wilford D. Lager, Councilman, Richard Bell, Councilman and Victor Scott, Councilman of the City of Anadarko, Defendants.
• Court: Oklahoma Supreme Court

Page 977

389 P.2d 977

1964 OK 40

Ed McVICKERS, Dr. J. B. Miles, Bert Temple, Frank ElkouriW. A. Cowans, Vaughndean Landes, Wallace Kidd and Ronald Bassett, Plaintiffs, v.Waldo J. ZERGER, Mayor, Melvin R. Allen, Vice-Mayor, Carl Miller, Councilman, J. L. Welch, Councilman, Wilford D Lager, Councilman, Richard Bell, Councilman and Victor Scott, Councilman of the City of Anadarko, Defendants.

No. 40782.

Supreme Court of Oklahoma.

Feb. 25, 1964.

Syllabus by the Court

1.A constitutional amendment should be construed in the light of its purpose and given a practical interpretation so that the plainly manifest purpose of those who adopted it may be carried out.

2.Section 35, Article X of the Oklahoma Constitution is self-executing and needs no act of the Legislature to effectuate its purposes.

3.Section 35, Article X of the Oklahoma Constitution applies to the incorporated cities of Oklahoma as well as to the towns and counties.

4.The five per cent debt limitation of Section 26, Article X of the Oklahoma Constitution does not apply to Industrial Development Bonds issued under Section 35, Article X of that Constitution.

5.Incorporated cities, incorporated towns and counties have authority to mortgage their title to industrial properties in the event necessary to supplement federal or state funds or funds from other sources as provided by Section 35, Article X of the Oklahoma Constitution.

Original proceeding by Ed McVickers, Dr. J. B. Miles, Bert Temple, Frank Elkouri, W. A. Cowans, Vaughndean Landes, Wallace Kidd and Ronald Bassett seeking an injunction against the defendantsWaldo J. Zerger, Mayor, Melvin R. Allen, Vice-Mayor, Carl Miller, Councilman, J. L. Welch, Councilman, Wilford D. Lager, Councilman, Richard Bell, Councilman and Victor Scott, Councilman of the City of Anadarko.Injunction denied.

Haskell B. Pugh, Anadarko, for plaintiffs.

George J. Fagin, Gary P. Sibeck, Oklahoma City, for defendants.

Sterling N. Grubbs, Cushing, for City of Cushing, Okl., amicus curiae.

Clee Fitzgerald, Stillwater, for City of Stillwater, Oklahoma and Stillwater Industrial Foundation, amicus curiae.

Owen Vaughn, Chickasha, for City of Chickasha, Okl., amicus curiae.

HALLEY, Vice Chief Justice.

This is an original proceeding in this Court by Ed McVickers, Dr. J. B. Miles, Bert Temple, Frank Elkouri, W. A. Cowans, Vaughndean Landes, Wallace Kidd and Ronald Bassett, as plaintiffs, against Waldo J. Zerger, Mayor, Melvin R. Allen, Vice-Mayor, Carl Miller, J. L. Welch, Wilford D. Lager, Richard Bell and Victor Scott, councilmen of the City of Anadarko, asking this Court to assume jurisdiction.The plaintiffs are resident taxpayers of the City of Anadarko and are appearing for themselves and others similarly situated.They charge that the defendants as Mayor, Vice-Mayor and Councilmen of the City of Anadarko are planning to call an election under Section 35, Article X of the Constitution of the State of Oklahoma for the purpose of raising funds by issuing and selling bonds which would be used for securing and developing industry within or near the City of Anadarko and that if the defendants are not enjoined they will do so.They say that Section 35, Article X only applies to incorporated towns and does not apply to incorporated cities and that the bonds, if voted, might exceed the 5% debt limitation of Section 26, Article X of the Oklahoma Constitution.It is further charged that the defendants will mortgage the industrial properties so acquired in order to obtain other funds that might be available from Federal or State funds.The plaintiffs ask that the defendants be enjoined from proceeding further in the calling of an election, and the issuance, delivery and marketing any bonds pursuant to Section 35, Article X of the Oklahoma Constitution.

Due to the importance and urgency of the matters herein involved to the City of Anadarko and other cities of Oklahoma we will accept original jurisdiction.SeeMeder v. City of Oklahoma City, Okl., 350 P.2d 916.

The following stipuation of facts was entered into by the parties:

'1.That the Mayor and Councilmen of the City of Anadarko intend and are preparing to call an election for the purpose of submitting to the qualified voters of said municipality the question of issuing limited tax general obligation bonds pursuant to the provisions of Article X, Section 35 of the Oklahoma Constitution for the purpose of securing ahd developing industry within the said municipality.

'2.That one of the principal purposes of Article X, Section 35 is the securing and development of industry which will provide additional employment and strengthen the economy of the municipality issuing said limited tax general obligation bonds, and the State of Oklahoma.

'3.That the Cities of Cushing and Stillwater are similarly situated as the City of Anadarko with regard to the issuance of limited tax general obligation bonds to secure and develop industry; and that the said cities cannot proceed pursuant to the provisions of the Local Industrial Development law or Public Trust Act, which provides for the establishment of an Authority with the outstanding obligations to be retired from the revenue derived from the rental and other commitments made by the industry.Small and medium-sized industries have difficulty in having revenue bonds sold and issued by means of a municipally or publicly controlled vehicle such as a trust or authority.There have been only two cases in Oklahoma where revenue bonds have been issued and sold to finance the acquisition of industrial activities and both companies are national in size and their stock traded on the New York Stock Exchange.

'4.That attached hereto is a chart published by the Oklahoma Department of Commerce and Industry which depicts the economic effect of a new factory employing 100 workers in a community.Such graphic presentation most clearly portrays the expected results to be obtained from similar industries in terms of eventual employment to be located in the Cities of Anadarko, Cushing and Stillwater.

'5.That the governing boards of the three said municipalities intend to proceed with the election and issuance and sale of limited tax general obligation bonds for the purpose of securing and developing industry to be used for manufacturing; and that the location of said industrial concerns and facilities within or near the three municipalities will create many additional jobs and employment within the State; that the governing boards are presently negotiating with various other industrial concerns interested in locating plants in Oklahoma which, if so located, will result in additional employment, payrolls and stimulation of the economy within and without the corporate limits of the three municipalities; and that many employees of such industrial concerns will reside in other cities and commute to their jobs thereby directly benefiting other cities and communities over the State in addition to the three municipalities involved.The foregoing is also the position of the Oklahoma Municipal League representing 250 Oklahoma municipalities.

'Dated this 22 day of January, 1964.'

The plaintiffs raise four propositions which we will answer in this case.They are:

'1.Is Section 35, Article X, of the State Constitution, self-executing?

'2.Does Section 35, Article X, of the State Constitution, apply to cities of first class?

'3.Does the 5% debt limitation of Section 26, Article X, of the State Constitution, apply to industrial development bonds issued by cities under Section 35, Article X, of the State Constitution?

'4.Can the city's title in industrial building acquired under provisions of Section 35, Article X, of the State Constitution, be mortgaged in the event necessary to supplement federal or state funds or funds from other sources?'

We will discuss them in the above order.

Proposition One raises the question of whether Section 35, Article X of our State Constitution is self-executing.In our opinion this Section is sufficient in itself.A reading of the same shows...