Appeal
from Circuit Court, Beadle County; A. B. Beck, Judge.
Prohibition
proceeding by the State of South Dakota, on the relation of
H. L. Saylor and others, against M. F. Walt, as City Auditor
of the City of Huron, Beadle County, South Dakota, to prevent
submission of city resolution to referendum, wherein L. H
Pier and others were permitted to intervene. From a judgment
vacating and dismissing an alternative writ of prohibition
plaintiffs appeal.
Affirmed.
SMITH
Judge.
This is
an appeal from a judgment which vacated and dismissed an
alternative writ of prohibition. The proceeding was
instituted to determine whether a resolution adopted by the
governing body of the city of Huron was subject to
referendum.
The
facts were not in dispute. At the annual election in April,
1937, the following question was duly and legally submitted
to, and approved by, the electors of that city: "Shall
the City of Huron, Beadle County, South Dakota, issue its
negotiable bonds in the amount of Two Hundred Thousand
($200,000) Dollars, bearing interest at the rate of not to
exceed four percent (4%) per annum, payable semi-annually,
such bonds shall mature on July first, in the amounts and
years as follows: $1,000 in 1939 to 1944, both inclusive,
$15,000 in 1945 to 1956, both inclusive, and $14,000 in 1957,
for the purpose of providing for the cost of the construction
of a fully equipped auditorium for the City of Huron, and the
acquisition of land for a site upon which to construct the
same, the total cost of site and auditorium to be Three
Hundred and Sixty-three Thousand Six Hundred and Thirty-six
($363,636) Dollars?"
Thereafter
the governing body negotiated with the federal government for
a grant of additional funds to aid it in the construction of
a fully equipped auditorium. In October, 1937, the
government, communicating through the Federal Emergency
Administration of Public Works, in a single proposal offered
to purchase the above-described issue of bonds and to grant
the city $163,636. This entire offer was made subject to the
terms and conditions contained in P W A form No. 230.
Thereupon the governing body of the city adopted the
following resolution:
"Resolution
"A Resolution Accepting the Offer of The United States
of America to the City of Huron to Aid by Way of a Loan and
Grant in Financing the Construction of a Fully Equipped
Auditorium for the City of Huron and the Acquisition of Land
for a Site upon Which to Construct the Same.
"Be it Resolved by the Board of City Commissioners of
the City of Huron:
"Section 1. That the offer of the United States of
America to the City of Huron to aid by way of a Loan and
Grant in financing the construction of a fully equipped
auditorium for the City of Huron and the acquisition of land
for a site upon which to construct the same, a copy of which
offer reads as follows:
"Federal Emergency Administration of Public Works
"Washington, D. C.
"Dated Oct. 6, 1937
"Docket No. S. Dak. 1102--DS
"The City of Huron,
"Huron, Beadle County, South Dakota.
"1. Subject to the terms and Conditions (PWA Form No.
230) which are made a part hereof, the United States of
America hereby offers to aid in financing the construction of
an auditorium, including necessary equipment and the
acquisition of necessary land therefor, (herein called the
'Project') by making a grant to the City of Huron
(herein called the applicant) in the amount of 45 percent of
the cost of the Project upon completion, as determined by the
Federal Emergency Administrator of public works, but not to
exceed, in any event, the sum of $163,636, and by purchasing,
at the principal amount thereof plus accrued interest
thereon, from the Applicant, obligations of the description
set forth below (or such other description as shall be
mutually satisfactory) in the aggregate principal amount of
$200,000:
"(a) Obligor: The City of Huron;
"(b) Type: Negotiable, general obligation, serial coupon
bond;
"(c) Denomination: $1,000;
"(d) Date: July 1, 1937;
"(e) Interest rate and interest payment dates: Four
percent per annum, payable semi-annually on January 1 and
July 1.
"(f) Place of payment: At the office of the Treasurer of
the City of Huron, South Dakota; or, at the option of the
holder, at a bank or trust company within the Borough of
Manhattan, City and State of New York.
"(g) Registration privileges: At the option of the
holder as to principal only;
"(h) Maturities: Payable on July 1 in amounts and years
as follows: $1,000 in 1939 to 1944, inclusive, $15,000 in
1945 to 1956, inclusive, and $14,000 in 1957;
"(i) Payable as to both principal and interest from ad
valorem taxes which shall have been levied without limit as
to rate upon all the taxable property within the territorial
limits of the Applicant in such an amount as will pay the
annual interest thereon and the principal of such bonds at
the time they become due.
"2. By acceptance of this offer the Applicant covenants
to begin work on the Project as early as possible but in no
event later than ten weeks from the date of this offer and to
complete such Project with all practicable dispatch, and in
any event within 12 months from the commencement of
construction.
"United
States of America
"Federal
Emergency Administrator of Public Works
"By
(Signed) E. W. Clark
"For
the Administrator
be and
the same is hereby in all respects accepted.
"Section 2. That said The City of Huron agrees to abide
by all the terms and conditions relating to such Loan and
Grant, a copy of which terms and conditions were annexed to
the Government's offer and made a part hereof.
"Section 3. It is hereby covenanted that work on the
project described in the offer will be commenced as early as
possible but in no event later than 10 weeks from the date of
this offer, and to
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