Sullivan v. City Council of Charleston

• Decision Date: 24 November 1925
• Docket Number: 11868. [*]
• Citation: 133 S.E. 340,133 S.C. 189
• Parties: SULLIVAN v. CITY COUNCIL OF CHARLESTON.
• Court: South Carolina Supreme Court

133 S.E. 340

133 S.C. 189

SULLIVAN v. CITY COUNCIL OF CHARLESTON.

No. 11868. ^[*]

Supreme Court of South Carolina

November 24, 1925

Original application by Lucy C. Sullivan for an injunction against the City Council of Charleston. Injunction refused, and petition dismissed.

Cothran J., Gary, C.J., and Bonham, Townsend, and Mann, Circuit Judges, dissenting.

The act and ordinance directed to be reported were as follows:

An act to authorize the city council of Charleston, Charleston county, South Carolina, to issue certificates evidencing the indebtedness due to the said city council of Charleston for taxes due and unpaid by taxpayers of the city of Charleston South Carolina, and to sell, hypothecate or pledge said certificates and upon such sale, hypothecation or pledge to assign the same and in the name of the city of Charleston to guarantee the payment thereof.

Section 1. Be it enacted by the General Assembly of the state of South Carolina: The city council of Charleston, Charleston county, is hereby authorized and empowered from time to time to issue its certificates evidencing the amount of taxes or portions thereof which may have been levied against property in the city of Charleston, Charleston county, South Carolina, and which are past due and unpaid and to sell, hypothecate or pledge said certificates, and upon such sale, hypothecation or pledge to assign the same and to guarantee in the name of the city council of Charleston to the holder thereof the payment of the indebtedness evidenced thereby, at a place and time designated in such guarantee: Provided, however, that when the taxes evidenced by said certificates are collected they shall be applied solely to the retirement of the same until all of said certificates are retired in full; and provided further, that in the event at any time sufficient of the said due and unpaid taxes have not been collected to meet the payment to the holder of such certificates, of the amount which is to be paid under the guarantee endorsed on said certificates at the time such guarantee provides for payment the city council of Charleston shall forthwith levy and collect a tax upon all taxable property in the city of Charleston, which, added to the collections made on such due and unpaid taxes, will make a sum sufficient to meet the payment of the amount due on the certificates then maturing; such certificates shall have attached to them interest coupons certifying that the city council of Charleston will pay to the holder thereof the amount of interest therein stated, which interest shall be fixed by city council in the ordinance authorizing the issuance of said certificates, and to meet the payment of said interest there shall be included in the general tax levy of each year in which such interest is due, as a part of the ordinary expenses of city council, a sufficient tax to meet the payment thereof. The guarantee of city council endorsed on said certificates shall provide the date on which the holder of said certificates may require payment thereof, and such time shall be fixed as in the opinion of City council is probable that the collection of said due and unpaid taxes will enable the same to be paid. The certificates and the guarantee and assignment endorsed thereon shall be signed, respectively, by the mayor and city treasurer and attested by the clerk of council under the seal of the city of Charleston, and the interest coupons attached to said certificates shall be signed with the fac simile signature of city treasurer lithographed or engraved thereon.

Section 2. This act shall take effect immediately upon its approval by the Governor.

Approved the 14th day of March, 1925.

Thos. G. McLeod, Governor.

An ordinance to authorize the issuance by the city council of Charleston of certificates evidencing indebtedness due to the said city council of Charleston for taxes due and unpaid by taxpayers of the city of Charleston, S. C., and to sell said certificates, and upon such sale to assign the same and in the name of the city council of Charleston to guarantee the payment thereof.

Whereas, under an act of the General Assembly of the state of South Carolina, entitled "An act to authorize the city council of Charleston, Charleston county, South Carolina, to issue certificates evidencing the indebtedness due to the said city council of Charleston for taxes due and unpaid by taxpayers of the city of Charleston, South Carolina, and to sell, hypothecate or pledge said certificates and upon such sale, hypothecation or pledge to assign the same and in the name of the city of Charleston to guarantee the payment thereof," approved the 14th day of March, 1925, the city council of Charleston was authorized and empowered from time to time to issue its certificates evidencing the amount of taxes or portions thereof which may have been levied against property in the city of Charleston, Charleston county, South Carolina, and which are past due and unpaid, and to sell, hypothecate or pledge said certificates and upon such sale, hypothecation or pledge to assign the same and to guarantee in the name of the city council of Charleston to the holder thereof the payment of the indebtedness evidenced thereby, at a place and time designated in such guarantee; and

Whereas, there are now past due and unpaid taxes which have been levied against property in the city of Charleston, county of Charleston, South Carolina, as follows:

For the year 1921 ..	$ 33,173 93
For the year 1922 ....	40,410 61
For the year 1923 ....	83,128 65
For the year 1924 ...	171,281 43
	-----------
Total .........	$327,994 62

And, whereas, under the provisions of said act city council of Charleston desires to issue certificates to the amount of one hundred and fifty thousand ($150,000.00) dollars, evidencing said indebtedness.

Now, therefore, be it ordained by the mayor and aldermen of Charleston, in city council assembled:

Section 1. That there are now past due and unpaid taxes which have been levied against property in the city of Charleston amounting to the sum of $327,994.62, being the unpaid portion of the taxes levied in the years 1921, $33,173.93; 1922, $40,410.61; 1923, $83,128.65; 1924, $171,281.43.

Sec. 2. That the city of Charleston do issue and sell its certificates of indebtedness to the amount of $150,000, representing part of the money due to the city council of Charleston by property owners in the city of Charleston for due and unpaid taxes levied in the years 1921, 1922, 1923, 1924, which said certificates of indebtedness shall be in denominations of $1,000 each, numbered from 1 to 150, inclusive, shall bear date the 10th day of June, 1925, shall carry interest at the rate of four and one-half (4 1/2 ) per cent. per annum, payable semiannually from their date, shall be payable at the office of city treasurer, Charleston, S. C., or if desired by purchaser, at a bank in the city of New York, N. Y., and shall be payable and redeemable in annual series as follows: $25,000.00 on the 10th day of June of each year, the first of which series shall be payable on the said date in the year 1926, and the last of which series on the said date in the year 1931. The said certificates shall have attached to them interest coupons certifying that the city council of Charleston will pay to the holder thereof the amount of interest due on such interest paying date. The said certificate and the assignment and guarantee endorsed thereon hereinafter provided shall be signed, respectively, by the mayor and city treasurer and attested by the clerk of council under the seal of the city of Charleston, and the interest coupons attached to said certificates shall be signed with the fac simile signature of city treasurer lithographed or engraved thereon.

Before delivery of said certificates to the purchaser an assignment thereof to bearer shall be endorsed thereon, and such assignment shall contain the guarantee of the city council of Charleston of the payment of the indebtedness evidenced thereby at the time and place hereinabove provided.

Sec. 3. The due and unpaid taxes evidenced by said certificates when collected shall be applied solely to the retirement of the same until all of said certificates are retired in full, provided that in the event at any time sufficient of the said due and unpaid taxes have not been collected to meet the payment to the holder or holders of such certificates, of the amount which is to be paid under the guarantee endorsed on said certificates at the time such guarantee provides for payment, the city council of Charleston shall forthwith levy and collect a tax upon all taxable property in the city of Charleston, which, added to the collections made on such due and unpaid taxes, will make a sum sufficient to meet the payment of the amount due on the certificates then maturing: Provided, further, that to meet the payment of the interest due on said certificates when the same is payable, there shall be included in the general tax levy of each year for the city of Charleston in which such interest is due, as a part of the ordinary expenses of city council, a sufficient tax to meet the payment thereof.

Sec. 4. That the form of the certificates, coupons and assignment and guarantee shall be substantially as follows:

Form of Certificate.

State of South Carolina, County of Charleston.

Certificate of Indebtedness.

Number. $1,000.00

This is to certify that there is due to the city council of Charleston, Charleston county South Carolina, the sum of one thousand dollars, being part of the due and unpaid taxes upon property in the city of Charleston levied in the years 1921, 1922, 1923, 1924, the total of which amounts to the sum...