City of Oakland v. Williams

Appeal from a judgment entered after an order sustaining a demurrer to appellants’ petition for writ of mandate. Petitioners seek to compel respondent to transfer to the 1925 Oakland harbor improvement fund from the 1925 Oakland harbor interest fund the amount of the premium realized on the sale of certain improvement bonds. The sole controversy between the parties is whether a premium realized on the sale of these bonds, which were issued under the provisions of the Municipal Bond Act of 1901 (Stats. 1901, p. 27), should be placed in the construction fund or the interest and redemption fund. This depends upon the proper construction to be given to the pertinent provisions of the statute.

■Section 6 of the act in question is. in the following language : 1 ‘ Such bonds may be issued and sold by the legislative branch of the city, town or municipal corporation as they may determine, but for not less than their par value, and the proceeds of such bonds shall be placed in the municipal treasury to the credit of the proper improvement fund, and shall be applied exclusively to the purposes and objects mentioned in the ordinance.”

It is conceded by respondent that when bonds are sold…