State v. Holman

• Decision Date: 03 December 1923
• Docket Number: No. 24821.,24821.
• Citation: 256 S.W. 776,301 Mo. 333
• Parties: STATE ex rel. ERWIN v. HOLMAN et al.
• Court: Missouri Supreme Court

256 S.W. 776

301 Mo. 333

STATE ex rel. ERWIN v. HOLMAN et al.

No. 24821.

Supreme Court of Missouri, Division No. 2.

December 3, 1923.

Original application for writ of mandamus by the State at the relation of J. L. Erwin, against E. C. Holman and others, as Justices of the County Court of Callaway County, and E. B. Campbell, as Clerk thereof. Alternative writ previously issued quashed and judgment entered for respondents.

N. T. Cave and Baker & Baker, all of Fulton, for relator.

W. B. Whitlow, of Fulton, and Emil P. Rosenberger, of Montgomery City, for respondents.

BAILEY, C.

On June 1, 1923, the abovenamed relator filed in the Supreme Court a petition for a writ of mandamus against the above-named respondents. The petition alleges, and respondents' return admits: That relator, John L. Erwin, was at all times mentioned in the alternative writ of mandamus, a resident taxpaying citizen of Callaway county, Mo. That he is now, and for two years last past has been, the owner of one of the Callaway County Hospital bonds, hereafter mentioned. That said respondents Holman, Moore, and Crump are now, and were at all times mentioned in said writ, the duly elected qualified and acting justices of the county court of Callaway county, Mo. That respondent Campbell is the elected, qualified, and acting clerk of said county court. The petition alleges, and the return admits:

That by virtue of and in accordance with the provisions of an act of the Legislature, found at page 145 of the Laws of Missouri for the year 1917, there was submitted to the qualified voters of Callaway county aforesaid, at a special election legally held on November 5, 1918, for that purpose, a proposition as to whether there should be levied upon the assessed property of said county, a tax not in excess of one-half mill on the dollar for the purpose of purchasing real estate for hospital purposes, for the construction of hospital buildings, and for the maintenance of same, or for either or all of such purposes. That the form of the ballot used at said election was as follows:

For a half-mill tax for a bond issue Yes for a public hospital and for maintenance of same. No

That, at the election so held, more than a two-thirds majority of the votes cast at such election voted "Yes." That the ballots were duly canvassed by the county court aforesaid and the proposition declared carried. That by such election the county court aforesaid was directed by the voters of said county to levy each year thereafter, for a period of 20 years, a maximum tax of one-half mill on each one dollar valuation of taxable property within said county for hospital purposes. That thereafter it was discovered by the citizens of Callaway county that said tax was not sufficient to build a hospital, such as the board of trustees of said hospital wanted, and another election was held in said county, on February 14, 1920, to submit to the voters of said county the proposition as to whether there should be levied an additional tax not in excess of one-half a mill on the dollar, for hospital purposes. That at said second special election said proposition of voting an additional tax, not in excess of one-half a mill on the dollar for hospital purposes, was submitted to the voters of the county, and that the same was duly carried. That said two elections, mentioned in foregoing writ, were had and done under the provisions of said law of 1917, supra, and as carried into and now forming article 27 of chapter 111 of the Revised Statutes 1919. That by said two special elections the county court aforesaid was directed to levy a total tax, not in excess of one mill on each dollar, or ten cents on the hundred dollar valuation, within said county, for hospital purposes, and that, when levies are made by the county court, it is the duty of said county clerk to extend such tax upon the tax books prepared by him. That a board of trustees has been duly appointed, elected, qualified, and organized under the law of 1917, supra. That after the first special election heretofore mentioned, held on November 5, 1918, in said county, for the purposes herein mentioned and referred to in the foregoing writ, the county court of said county issued bonds in the sum of $75,000 to secure money with which to build a hospital, and that all of the bonds were sold. That, after the second special election herein mentioned, said county court issued additional bonds in the further sum of $37,500, and that all of said bonds were sold. That the hospital tax voted at the two special elections aforesaid was for the purpose of paying the interest and principal of the hospital bonds aforesaid, when the same should fall due.. That a hospital has been constructed in the city of Fulton, Callaway county, aforesaid. That the same has been open and receiving patients for about two years. That judgments in excess of $6,000 have been obtained in the circuit court of Callaway county aforesaid against the hospital fund. That in April, 1923, the board of trustees aforesaid filed with the county clerk aforesaid a written demand, asking the county court to make a mill levy on the dollar valuation for the year 1923. That for and in the year 1923 the judges of the county court aforesaid for hospital purposes made a levy of a half mill, or five cents on the one hundred dollar valuation.

The respondents, in their return, deny each and every allegation in the alternative writ of mandamus contained, not herein specifically admitted to be true. The return further alleges that the petitions presented to the county court, calling for the elections aforesaid, did not state that a tax of onehalf a mill on the dollar, or five cents on the one hundred dollar valuation was to be levied, but stated that the tax to be levied should not be in excess of one-half of one mill on the dollar valuation, or five cents on the one hundred dollar valuation; that the voters at said elections understood that the maximum amount of tax that could be levied for hospital purposes, if both elections carried, was one mill on the dollar, or ten cents on the one hundred dollar valuation, and that the tax to be levied could be as much less as in the judgment and discretion of the county court would raise a sum of money sufficient for the purposes intended ; that when the second election was held, the total assessed valuation of Callaway county aforesaid, as of June 1, 1919, including merchants, railroad, telegraph, and telephone companies, amounted to $15,250,430, and that a ten-cent levy on the one hundred dollar valuation for the year 1920 would and did produce a total tax of $15,520.43; that when said second election was held the taxpayers of said county had in mind the assessed valuation of June 1, 1919, supra, amounting to $15,250,430, and also had in mind that the ten-cent levy on a one hundred dollar valuation would produce a tax for hospital purposes not in excess of $15,250,43, which said taxpayers deemed ample and sufficient, as the maximum amount of tax to be raised in any one year, for the purpose of paying the interest on all of the bonds issued and to be issued, to create a sinking fund to pay said bonds when due, and to maintain said hospital; that when the first election was called it was estimated by the board of trustees of the hospital that $75,000 would be sufficient to build and equip the hospital; that bonds of above amount were issued; that 150 of said bonds were issued in denominations of $500 each, payable in 20 years after date, or at the end of five years at the option of the county court, to bear annual interest at the rate of 5 per cent., payable semiannually, and were in the form prescribed by the statute; that it later developed that the sum of $75,000 was insufficient to erect and equip a hospital, such as the board of trustees described; that a second election was held and bonds issued thereunder by the county court in the sum of $37,500; that said bonds were 75 in number for the principal sum of $500 each, bearing 6 per cent. annual interest, payable semiannually, due on or before 20 years after date, with the privilege, on the part of the county court, to make payment thereof at the end of five years, and that each of said bonds, so issued, was in the form prescribed by the statute; that on June 1, 1918, the assessed valuation of said county was $14,428,400, including merchants, railroads, telegraph, telephone, and other corporations; that for the year 1919, the county court, acting under authority granted it by the first special election, made a levy for hospital purposes of one-half a mill on the dollar, five cents on the one hundred dollar valuation, and thereby a tax of $7,214.20 was raised; that said levy was made under the first election; that of said sum $3,750 was required to pay the interest on the bonds issued under the first election, and that the remainder was paid to the board of trustees of the hospital to help pay the running expenses thereof; that on June 1, 1919, the assessed valuation of said county was $15,250,430, as heretofore stated; that the second election had been held, and for the year 1920 a tax for hospital purposes was levied by the county court of one mill on the dollar, or ten cents on the one hundred dollar valuation, which raised a tax for hospital purposes of $15,250.43, and that out of said sum the interest on the total amount of hospital bonds issued, to wit, $112,500, was paid, and the remainder of said tax was paid to the board of trustees of the hospital to help defray running expenses.

The return further alleges that in 1921 the state board of equalization more than doubled the assessed valuation of Callaway county, Mo., and that as a result thereof the assessed valuation of said county, including merchants, railroads, telegraph and telephone companies, and other corporations, was $33,706,400, and that thereupon the county court, for hospital purposes, made a levy of one-half mill on the...