South Texas Public Service Co. v. Jahn

Jahn and others, taxpaying citizens of New Braunfels (referred to as the city), obtained a decree against the city, its mayor, commissioners, and South Texas Public Service Company (referred to as the service company), canceling a contract between the city and the service company, an ordinance ratifying it, and a bill of sale, whereby the former sold to the latter its electric street lighting system. The city and the service company have appealed.

The controlling facts (undisputed except where noted) follow:

In 1911, the city issued $67,000 of bonds “for the purpose of construction and…