The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-02-13
ISSUING BONDS ILLEGALLY.
Action of the County Commissioners in Di-
rect Violation of the Statute.

The purchase of the Schurmann property for
the proposed work-house was consummated by
the Board of County Commissioners yesterday,
but one part of the transaction is so obviously il
legal that it will undoubtedly have to be undone.
According to the provisions of the agreement
the county was to pay $1,000 cash, and S. 600 in
two equal annual payments. The formal trans
fer and cash payment were made yesterday, and
four bonds or obligations were drawn up, two
for SO, 900 each and two for 81, coo each, the fol
lowing being a copy of one of the latter:
This indenture witnesseth that Marion county, in
the State of Indiana is bound to Emma S. Vorster in
the sum OF 81 600 payable two years after date, at
the FIRST National Bank, IN the city Of Indianapolis
with interest at per cent per annum, and without
any relief from valuation or appraisement laws In
witness whereof the undersigned Board of Commits
soners of said county have hereunto written their
signatures at the city of Indianapolis, the 18th day
Of February, 1884. FREDERICK OsTERMEYER,
JOSEPH LOFTEN,
W. r. CLINTON
Commissioners.
Appended to this were the unsigned certif-
Gates of the Auditor, and Mr. Woollen, the
county attorney, asked Auditor Adams to afiX
his signature thereto. Mr.. Adams was convinced
that the county had no right to issue any addi-
tional bonds, and this opinion agreed to by
his legal adviser and he accordingly refused to
sign the bonds. The Auditors certificates were
thereupon cut off, and the remainder were ac-
cepted as obligations for the deferred payments
They taken to a banking house and offered
for sale, but the bankers declined to buy them
under the circumstances.
There is little doubt that the commissioners
had no right to increase the countys indebted
ness by bonds, notes, or obligations of any kind
and their action yesterday was manifestly Illegal
The provisions of the law are very explicit on
this point. Section 5S1S, Revised Statutes, pro-
vides:
Whenever the aggregate Indebtedness, funded or
otherwise of any county of this State having a voting
population of 20 600 shown by the votes cast
for Governor at the last preceding election amounts
to or exceeds l per cent. upon the taxables borne
upon the county tax duplicate for the current fiscal
year, it shall not be lawful to increase such indebted
ness, in any form whatever, except only by
temporary loans in anticipation of the of the
then fiscal year, and not exceeding twohirds of the
amount of the county tax duplicate of the preceding
year payable out of said revenue and within the cur
rent fiscal year. No temporary other loan upon
the revenue of any year thereafter shall be made un
til all temporary loans upon the revenue of any pre-
ceding year have been fully paid. Any ordinance, or
der, resolution, warrant, certificate obligation note
soever made or IN whatsoever form to increase the in
debtedness of any such county except herein pro-
vided, shall be absolutely null and void.
Section 5S17 provides strict, adequate punish
ment for officers who violate the act, making
such an q ense a felony, punishable by fine and
Imprisonment.
The total value of the taxables of the county
is, in round numbers, $74 OOO, 600 and, according
to the provision above cited, this would permit of
a bonded Indebtedness of about $40, 600. Before
the act was passed, however, the bonded indebt-
edness of the county was already 100000, and,
of course, this can not be increased now. There
is besides, temporary loan of 100000. due
June l. 1884.
Mr.. Ostermeyer, president of the board, was
asked about the matter by Journal reporter on
yesterday, and said that the board had issued
such obligations and would probably take them up
in June, after the tax levy Another gentleman,
who is well informed about such matters, said
there was no doubt that the,board would have to
reconsider its action ofyesterday and the easiest
way out of the difficulty was to authorize the
treasurer to make a temporary loan, sufficient to
pay the amount of money required. If the action
were adhered to, any tax payer could enjoin the
payment Of the bonds issued yesterday, and they
would never be paid
The law provides that county commissioners
may build work houses under certain condi-
tions, out of the general fund, but they cannot
issue bonds for such work when the limit of the
bonded Indebtedness of the county is alreadyex
ceeded, as in the present case.