The Superior times. [volume] (Superior, Wis.) 1870-1912, 1876-01-06
BANKRUPT DULUTH
Notifying Statement from one Of
her own Journals

0oItlIyIag SCatement rom one Of
her own Journals
From the Duluth Tribune.
1t is well known that the TRIBUNE
has long held that a very large pro.
portion of the outstanding bonds O,
this city are illegal and void, and
that the city is under neither legal
nor moral obligations 10 pay them.
1t is also well known that some of
the wiseacres Of this place have
held that even if some of the bonds
had been illegally voted, for an lille
gal purpose, yet the city could not
evade their payment, if in the hands
OF innocent purchasers. Judge
Miller, of the U. S. Court, knocked
this theory pretty effectually in the
head by decision of his in Kan
sas case last spring. The pi,h of
that decision can be inferred from
the following editorial comments
thereon, which we clip from Chica.
60 Leg4 Neaos, of last March
The Legi lature 10 Kansas passed an act
which became a law Feb. 20, 1872, by which
the legislative bodies of certain cities
(among them Topeka were authorized to
issue bonds or make appropriations ito en-
courage the establishment Of manufactures
ana such other enterprises as may tend to
develop and Improve" their respective cit
les. Grants of more than 81 900 were pro-
hlblted, however, unless authorized first by
the Council and then by majority of votes
cast at special election. Topeka issued
under The law, Sl0Q,nO0 of bonds and gave
them to b dge building concern in that city.
Inc Supreme Court decides that the object
ION was we'll taken, and that the bonds are
VOID Justice Miller declares that Legsla
ture cannot pass statue creating debt un
less 1t has power to levy TAX IN aid of the
purposes for which the debt is crt ated
Ihe Legislature OF Kansas has no 1,o,oer to tar
The citizens u Topeka IN aid of naanufact.rv :;
u hercfo'e con7tot pass statue CT eotinq q debt
for that purpose. There can be no lawful
tax" says the decision, which is not for a
public purpose. This case adds one NOR,
precedent To The long line against the validity
Of prlvate-aid bonds.
The ucclsion had the effect OF
making the holders of our traudu
lent bonds feel decidedly unromtor
table. but The u S. Circuit Court
has Ju-t rendered another decision
at Topeka, which Will make them
feel "bluer" YET.
olAce the feialtl0n or the above
decision, thee seems 10 have hpeu
q general determination ON tho ,.,r,
IF tha bolda, t.u L r
given III AID OF railroads. and other
enterprises, land Of The counties
and cities is ling them) 10 test the,r
validity 80 that both tarlies miyb,
know lust what 10 de,eud unon
The result of these suits il fms
told by a di>patch from Tonek,
under dase Of Dec 10Th.
The United States c,rcD;, co,r, - .o..io
here for the D. 1T two weeks hss adionrned
after the transaction Of a large amount OF
business. A considerable portion of the
s;s,nr n,,,n "t and !" ene s'ia, Oh cases re-
bonds voled BY counties and cities in a,3 ot
railroads These cases were qeneraUv de-
c'ded IN favor of the bondaoldels or railroad
S don,p S,u asalnst the taxpayers. The
main issue was TO ,bs ,hs. b upon ho ade
have b. IL regularly voted for a lawful obiecI
they conhot be invanda.ed by informaiites
in their issuance delivery, Or sale, ana thu
oaon Ica,IIv vn na4u - " h ponos nave not
-, 1890 VI ""Fc peeh 'oIou iOr