English v. Bd. of Supervisors of Sacramento
Before: Again, Baldwin, Been
Synopsis
The Act of 1854, entitled, “An Act to Fund the Floating Debt of Sacramento County and to provide for the Payment of the same ”—authorizing the issuance of bonds, payable in ten years, for the indebtedness of the county then due, and making it the duty of the county authorities to assess annually, in addition to the taxes then authorized by law, a tax of one-fourth of one per cent, upon all the taxable property of the county as a Sinking Fund for the gradual redemption of the bonds issued under the act—when executed by the county creditors, by accepting the bonds in lieu of their former claims, became an inviolable contract, and the county authorities are bound to levy the tax for the Sinking Fund.
This provision in the act, for assessing an annual tax as a Sinking Fund, becomes, upon the execution of the bonds and cancellation of the original claims, a part of the contract, and is the sanction and security provided by law for the performance of the contract. This annual tax is a fund pledged.
The case might be different if the bonds had been executed before the passage of the law, and then provision had been made by the act for levying the tax for their payment. The act in such case would be an ordinary act of legislation, subject to repeal—a mere voluntary provision by the debtor, or on his behalf, for payment of his debt.
When the county issued the bonds and received therefor the evidences of its original indebtedness, the county made a contract with the creditors to collect this tax; and this contract can be enforced as well as the claim of the creditors to the money, if it were collected and in the treasury, could be enforced; and such a claim would be perfect.
The facts that the Act of 1854 cast the duty of levying this tax upon the Court of Sessions, and that by the General Act of 1855 the powers, other than criminal, conferred on such Court by any law were cast upon the Board of Supervisors, do not impair the obligation of the provisions of the Act of 1854 as a contract between the bondholders and the county. Such a change in the tribunal directed to levy the tax is within the power of the Legislature.
McDonald v. Maddux (11 Cal. 187) does not conflict with the doctrine of this case. There was no contract in that case.
The Act of 1854is no cession or surrender of the taxing power of the State; but is rather an agreement and authority to exercise the taxing power for a particular purpose.
If the Consolidation Act for Sacramento be in conflict with this fifth section of the Act of 1854, the former must yield.
Opinion — Baldwin
Baldwin, J. delivered the opinion of the Court Field, C. J. concurring.
Application for mandamus against defendants to compel them to levy and assess a tax of one-fourth of one per cent, on all the taxable property of the county, to be set apart as a sinking fund for the gradual redemption of the outstanding bonds, issued under the Act of 1854, entitled “ An Act to Fund the Floating Debt of Sacramento County, and to provide for the Payment of the same.” (See Laws of 1854, 201.) By this act the county of Sacramento was authorized to fund its floating debt, Commissioners were appointed for that purpose, the power was given them to issue bonds, etc. By the fourth section it is provided, that of the moneys re[183]ceived by the County Treasurer from the taxes assessed for county purposes, there shall be first set apart a sum sufficient to pay the January interest on said bonds, “ and no payment shall be made except upon account of said interest from the treasury until such amount is secured; and from the same fund there shall be set apart, previous to the first of June in each year, a sum sufficient to pay the July interest on said bonds.” The fifth section is that mainly insisted on as giving the rights claimed by the plaintiff here. It is in these words: “ Section 5. It shall be the duty of the Court of Sessions of said county to assess annually, in addition to the taxes now by law authorized to be assessed, a tax of one-fourth of one per cent, upon all the taxable property of the county as a sinking fund, for the gradual redemption of the bonds issued by virtue of this act.” By the Act of 1855, the duties of a civil character, which by previous acts had been cast upon the Court of Sessions, were cast upon the Boards of Supervisors for the respective counties. The plaintiff here i*s the holder of one of the bonds issued under this Funding Act, and in pursuance of its provisions he claims that this act assures to him, as a part of his contract, the right to demand that the fifth section of the Act of 1854 shall be carried into effect, and prays that the defendants be ordered to levy the tax therein mentioned.
The question involved is, whether this provision of the Act of 1854 entered into and formed part of the contracts—the bonds— executed in pursuance of its provisions. Before the passage of the Act of 1854, the plaintiff or his assignor held claims which we assume to have been valid debts against the county. It may be that he had no means of enforcing payment by the ordinary process of legal coercion. But still as high an obligation, moral and honorary, rested upon the county to pay them. This obligation, if no provision otherwise existed, might have been enforced by the Legislature, and it is to be presumed it would have been upon proper representation by the parties interested. After the passage of the act and in accordance with its provisions, the holders of this indebtedness exchanged them claims presently due, for bonds payable ten years after date, with interest at the rate of ten per cent, per annum; after which act the holders, of course, had no claim for immediate
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