City of Kirbyville v. Smith

WALKER, Chief Justice.

Appellant, City of Kirbyville, is a municipal corporation, duly chartered under the provisions of chapter 1, title 28, Revised Statutes of Texas (article 961 et seq.). As such municipal corporation, it installed and, in 1934, was operating a system of waterworks for the convenience of its citizens. In 1934, appellant’s city council decided to install a sewerage system, and began negotiations with the Federal PWA agency to finance the project; for that purpose, PWA agreed to buy appellant’s bonds in the amount of $38,000, to be secured by a pledge of the revenues from the…