Peery

pro tem.—In these two cases there are three appeals: One by Herbert Peery and one- by H. W. Anderson, plaintiff and intervener, respectively, in the first of said actions, and one by H. W. Anderson, as plaintiff in the second of said actions. The same questions are presented upon each of said appeals. These actions were each instituted for the purpose of obtaining an injunction against the defendant city of Los Angeles and its officials, restraining it and them from disposing of certain municipal bonds of said city for less than the par value thereof, or upon terms which would yield to the purchaser thereof a rate of interest in excess of the rate specified in the ordinances calling the respective elections held in said city for the purpose of securing the approval of its electors for the incurring of the indebtedness to be evidenced by said bond issues; and,- also, for the purpose of having declared void a certain contract between said city and one I. H. Heilman, relative to the purchase of a certain portion of said bonds. As to the facts in each of these cases there is no dispute.

In the year 1914 the city of Los Angeles duly and regularly adopted certain ordinances providing…

Concurring.—I concur in the foregoing opinion.

I wish to add, however, that, in my opinion, the vote of the people, by which the city was authorized to sell the bonds at a price not less than par, constituted a part, and a material part, of the contract evidenced by the bonds, as stated in Merchants Nat. Bank v. Escondido Irr. Dist., 144 Cal. 329 , [ 77 Pac. 937 ]. The city is the nominal. obligor or promisor on the bonds. It has no authority to make the promise and issue the bonds, except such as it obtained by this vote, and that authority was conditioned that the buyer of the bonds, the promisee, should pay to the city at least the par value as the consideration thereof. The real payors of the bonds are the people who pay the taxes levied to raise the fund for that purpose. They are, under the constitutional scheme, in substance and effect the principals whose authority must be first given, in order to authorize their agent, the city, to make the contract. This authority, as evidenced by the records of the election at which the authority was given, must be considered as a part of the contract, at least to the extent that the conditions therein stated cannot be disregarded by…