The weekly Placer herald., 1855-07-21
Decision Rendered by the Supreme
Court.
MONDAY, July 18th, 1855.

MONDAY, July 10th, 1903.
Taylor vs. Brooks-The ninth section Of
the act to fund the debt Of the county Of Yol0
after having provided for funding the indebt-
edness existing prior to the 1st Of January,
1853, and for paying the interest on the same
by special tax levied for that purpose; pro-
vides that it shall be the duty Of the Treasu-
rer to set aside sinking fund into which
shall be paid frat, any and all surplus of
the interest fund aforesaid; second, what
ever surplus may remain in the Treasury of
the county of Yolo on the Is! day of March
1854, and on the lst day of March every year
thereafter, after paying the ordinary yearly
fund shall be sufficient to pay the principal
and interest Of the debt so funded.
The Plaintiff in this suit is the owner and
holder Of 1.-TWO warrants" drawn on the 11th
of January, 1854; not fundable under the act
and which were regularly presented and re-
gistered mot paid, for want Of funds" ac-
cording TO the provisions Of the act concern
ing county Treasures, passed March 22, 1850.
1t is admitted that the warrants in dispute
are The Oldest outstanding egistered warrants
in the county, and that there are sufficient
funds in the hands of the Treasurer arising
from the revenue of 1854 to pay the same.
But it is contended that the ninth section of
the act quoted fixes fiscal year" for said
county to commence on the lst day of March,
1854, and that said funds in the hands of the
Treasurer should be applied to the liquida-
ton of warrants issued after that sine,
Such isnot 3 true construction Of the ssa cute.
The intention of the Legislature was to pro-
vide for the gradual eYtinguishment of the
county Indebtedness by means of taxation, and
the surplus revenue if any remaining in the
Treasury at the end of each year. This it was
supposed would be amply sufficient, leaving
the county to provide for its future expenses
by means of the general tax which the law
authorised
From the registration of the plaintiffs war
rants he became preferred creditor by the
provisions of the act Of March 22d, 1850 and
it certainly would be forced construction,
and one to which we would be very reluctant
to assent without direct words to that effect
to hold that the Legislature had not only de-
priyed him of the privilege of funding his
warrants, but also denied him all remedy,
and that too when there was a law upon the
statue book providing that said Indebtedness
should be paid out Of the first monies in the
Treasury belonging to the General Fund.-
Such construction would postpone indef-
nitely, if it did not render the debt worthless
which was contracted on the last day of the
fiscal year, while that incurred on the day
succeeding would take precedence of all prior
recorded warrants.
can see no good reason why the revenue
of 1854 should not be applied to debt of the
same year, or why creditor holding the war
rants of the county, and who is not paid up
to the lst day of March, because there is no
money in the Treasury, should not be allowed
his debt out of the revenue of that year, when
they shall afterwards be paid in. or any other
monies not especially set apart by law. 1t is
said this would be legal fraud on the bond
holders. Such is not the case; they are to be
considered as having looked to the interest
tax and the gradual accumulation of the
Sinking Fund for their security-and appre-
hended that their action in funding their debts
against the county was not predicted upon
the hypothesis that still greater fraud was
to be committed upon other creditors of the
county, by refusing them any remedy or pay
ment whatever.
The case of Mcdonald VS.. Grswold, decided
at the July term, 1854, of this Court, does
not touch this case, and cannot properly be
said to support the decision of the Court
below.
For these reasons the Judgment is reversed
and the Court below directed to proceed in
conformity to its opinion.
MURRAY, C. J.
| concur: BRYANT.
STATE BoNDs DUE IN lS55.-We learn, that
of the SllO,27O "a, principal and interest, of
the State bonds due in 1855, and forwarded
some time since by the State Treasurer to New
York, that information has been received of
the presentation and payment of $l05 O0O.-
aN@.. ~