Source: https://supreme.justia.com/cases/federal/us/236/50/
Timestamp: 2019-04-20 00:17:54+00:00

Document:
The obligation of bonds issued by a county pursuant to legislative authority is an obligation under, and not paramount to, the authority of the state.
While the district court has jurisdiction, where diverse citizenship exists, of a suit upon bonds issued by a county pursuant to legislative authority, the extent of the obligation is determined by the statutes of the state, and not by the Constitution of the United ,states.
A plaintiff, by bringing suit in the federal court upon the contract obligation of a county, acquires no greater rights than are given by local statutes.
The right given in bonds issued by a county pursuant to legislative authority to have a tax levied, collected, and applied to their payment is to have such tax levied and collected in the manner provided by statute, and courts cannot substitute their own appointee in place of one contemplated by the act.
Even where the state court, by mandamus, has directed the officers of a county to levy and collect a tax as required by the state statute and apply it to the payment of a judgment for defaulted bonds, and they have failed to do so, the federal court has not jurisdiction to appoint a commission to levy, collect, and apply the tax.
Until the highest court of Missouri otherwise construes Rev.Stat., § 11417, Missouri, giving the circuit court power to enforce by mandamus or otherwise an order of the county court to have a tax assessed, this Court will not construe the words "or otherwise" as authorizing the court to collect the tax itself, but as only allowing the resort to other means besides mandamus to compel the county court to do so.
The facts, which involve the jurisdiction of the district court, are stated in the opinion.
This case comes here upon a certificate from the circuit court of appeals. It is a suit in equity and the bill was dismissed by the district court. The facts alleged are, in short, as follows: a statute of Missouri incorporated the Laclede & Fort Scott Railroad, and authorized counties to invest in its stock and bonds, and to issue county bonds in order to pay for the same. The appellee did so, afterwards defaulted upon its bonds, and the appellant recovered judgment upon them in the same district court for over a million dollars. Under the laws in force when the bonds were issued, it was the duty of the county officers to levy and collect annually a tax of thirty percent of the amount of the bonds issued, but this duty never has been performed, and the county officers evade service of writs of mandamus, or, if served, refuse to obey the writs.
"1. Has a district court of the United States, sitting as a court of equity, jurisdiction of such a cause?"
was made, was authorized and made the basis of the levy of the amount to which the plaintiff is now entitled under his judgment and writs of mandamus, so that no act of discretion is required to levy and collect it, but only the clerical or ministerial acts of apportioning the amount among the assessed values of the taxables specified in the last previous assessment, placing it on the tax books, and collecting it of the persons and property liable therefor, has the federal court of the district in which the judgment was rendered, and the futile writs of mandamus issued, and, when possible, served, the jurisdiction and authority in equity to appoint a commissioner, receiver, or other officer to make the apportionment and to collect the amounts which the owner of the judgment is entitled to have collected from the parties and properties liable therefor."
for the courts to substitute their own appointee in place of the one contemplated by the act. Seibert v. Lewis, 122 U. S. 284, 122 U. S. 298. The Missouri case referred to in that decision states a rule that we believe always to have been recognized in that state and others, as well as reinforced by other decisions of this Court. Kansas v. Hannibal & St. Joseph R. Co., 81 Mo. 285, 293; St. Louis & San. Frans. Ry. v. Apperson, 97 Mo. 300, 306; Rees v. Watertown, 19 Wall. 107, 86 U. S. 117; Heine v. Levee Commissioners, 19 Wall. 655, 86 U. S. 658; Barkley v. Levee Commissioners, 93 U. S. 258, 93 U. S. 265; Meriwether v. Garrett, 102 U. S. 472, 102 U. S. 501; Thompson v. Allen County, 115 U. S. 550, s.c. below, 4 Ky.Law Rep. 98, 101. The rule has other applications -- e.g., Smith v. Reeves, 178 U. S. 436, 178 U. S. 445; United States v. Kaufman, 96 U. S. 567, 96 U. S. 569.
to enforce "by mandamus or otherwise" an order to the county court to have the tax assessed, etc. But the words "or otherwise" do not authorize the circuit court to collect the tax, but only allow the resort to other means beside mandamus to compel the county court to do so. At least until the Supreme Court of Missouri says otherwise, we should read them in that sense. We answer both questions: No.

References: § 11417
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