, 1879-02-23
CITY FINANCES.
The Validity of the Former Fully
Sustained.
Meeting Of the Uouncil-Increasine
Various Salaries.
SCRIP AND


In March Of last year bill was flied in the
Circuit Court for an injunction to restrain the
city from paying the certificates OF 1877 and prior
years On the ground that they were illegal. At
that time the credit Of the municipality was
good; all the money needed could be had at
per cent; and the machinery, well-oilcd, was
running smoothly. This bill Was 6guratively a
cart-load OF sand. Dumped among the wheels
Of the Government, they ceased to revolye.
Mayor Heath. the Comptroller, and the
Corporation Counsel didn't know what to
do. When the Circuit Court dismissed
the bill for want Of equity they felt better
When notice OF an appeal was given they we're
sad again. The Appellate Court, however,
cheered them up by affirming the Judgment of
the lower Court. But these favorable decisions
gave no relief. 1t was conceded all around that
it would not do to continue the issuance OF the
certificates, though the Governments had been
carried On in that way for years, and those Of
~ had held to be yalid by Judge Meal
index Of that Of the Supreme Court. 1t
was thought best, however, to be
on the safe side, In view OF the decisions OF the
Sunrcnc Court in the Springfield anI Law
cases, 80 the present scrip idea was hit upon, it
N~'A'5 At4tSsCA ~ LIZ TA%n AtAN AA1
laid down In the former case. But taxpayer
hopped on to this also, and applied for all i'll
Junction to stop the printing-presses just Us
they bad gotten in good running order. What
aff'cxciteinent it produced around the "rook-
cry"! Officials predicted that there would
have to be n,tnt shutting M OF noda1s tns
aud their property to the thieves and
the thugs As in the other case, the bill was
dismissed for want Of equity. and, to save time,
by cousent, an a(liru.atorf decree. pru lorna.
was entered III the Appellate Conrt. It was of
great Importance to the city to secure early tle-
cisious it both cases, especially that Involving
the validity Of the paper then beir. paid ont,
since it was the only means the city had Of pay
inr the employees. In the other 81, ,700, ,000 was
somewnat, could afford to wait. The septc,n-
ber term at Ottawa vas too far
oil, so the two were taken down to
Mt. Vernon, in the Southern District.
and the arguments made in June, with tie ex-
pectalion That opinions would be filed by Sep
tember. They were not, however, and, as a re-
suit, all Of the 1877 certificates except s1,200
have: been redeemed, and only S33l, ,uD OF the
'75s are now outstanding;
A dispatch was received from Mt. Vernon yes
fled,-one adverse to and the other in favor OF
the city.
was involved the validity OF the certificates, the
Court rcVerseS the luQEfnenL o. t1e appcllatt
Court, and rcmands the cause. They hold the
paper to be void, in that it Is drawn
upon the tax Of 1875 or 1877 generally,
whereas warrant should have been drawn upon
the particular fund to which the money had
been contributed. This was particularly true
OF the '75s, but the Court says, Us to the IT'S,
that the Treasurer is ordered to pay to the
holder SO much money, and charge it to such
fund; that that is not drawing against the fund.
since the Treasurer might charge the amount
to the fund though there might be no money IN
the fund with which to redeem the warrant.
But the Court express the opinion
that, the money having been contrib
uted to the funds, the holders Of
the certificates arc equ1eably entitled to
have it refunded out OF the taxes Tor those
years, when collected. The decision Is simply
that the warrants were not in proper form, anu
that an ipjuncrion will lie to restrain their
issue, but not to prevent the people who loaned
the city money from getting it back il the taxes
come In. But it settles also the question OF
paying interest, if any doubt existed Oh the SUBJ
ject.
In the other case, Fuller vs.. Heath, which in
Vo1yed the validity of the preseut scrip, tue
decision Of the low cr Courts Is affirmed for the
reason that the paper conforms substantially TO
the rulings in the Springfield and Law cases.
This will bring joy to the holders OF me 1e0
millions and over Of scrip now out, since oil
doubt Of its legality is removed. 1t Will also
bring relief to the city officials, Who,, though
confident they we're acting within the law, nau
some misgivings on account OF the long delay
Of the Supreme Court ia reaching CONCLUSION"