The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1884-10-25
THE FLOA'lINGsIDEBT
TIE ra1 CRY sos,Lie1ron,s. iyyy1n1,ss
Oethe Legality and validity Of Obligations
Represented by Outstanding City Or. K
q " dsrs-Attcry Interesting md I'm.
portant Paper on tho Sub sot. X y Z,

y dsrs-Ayrery Interesting and I'm. Y
portant Paper on tho subjso Z.
: Aspecial meeting Of both branches Of
Council was held last evening. The call
for the meeting stated that important
business was 10 besconsilered, and there
wasa full turnout Of members, larger, in
fact, than Tor many meetings past. Very
few appeared to have my idea what the
business cierred To- was. Il proved to be
tho opinion OF tho City Solicitor recently
usked for in n resolution introduced in tho
Second Branch, regardilts the city's
financial condition. 1t was read first in
tho upper house, and referred to the joint
Standing committees on Finance and
Ordinances. It was read In tho lower
branch for information-I It Is MS follows:
rms soLiciroR's OPINION.
10 The Mayor aud Council Of The City Of
Wheeling. AZ, 4. s}
GrStLf,,Ey:-At your last meeting
resolution was adopted calling upon mo for
MI opinion rs 10 tho legal status OF the
present floating indebtedness Of tho city,
and how II can be funded, and for sug-
gcstions rs TO tho means that should be
adopted TO prevent financial embarrass-
men,s IN tho future like. those at present
experienced. :. ul,tat 2
10 give anything like full answer to
the first branch Of the question, thatis,
MS to the legal status Of tho noating III
dcbtcdncss, requires an inquiry into the
nature aud extent OF the authority OF the
city to become indebted, and into the
cause and source Of the present iloatingi ill.,
dcbtcdncss.
Section eight Of article ten Of the
Constitution OF this State, adopted
In 1872, provides that no, county,
school district or municipal corpo.
ration shall DO allowed to be-
come indebted in anymauner, for any pur-
pose, Unless all questions connected with
The subject OF mourning tho indebtedness
shall have first been submitted to a..vote
OF the people, and have received three
titths ofal the votes cast for and against tho
same. The same section also forbids
counties, school districts and municipal
corpuratons from becoming indebted,
even with the consent Of threc-tifths OF
tho voters, 10 IN amount, including all ex-
listing Indebtedness, ii, the aggregate ex-
cccding five percent Of tho value Of the
taxable property. therein, Ms shown by the
last assessment for State and county taxes.
I. 1t also plainly provides that a debt, so
limited in amount, cannot he lawfully con-
,racted, even with tho consent OF three
fithsoi the voters, unless provision ismade
at the same time for the collection OF u
direct annual tax sufficient to pay IN.
nuallv the interest OH such debt, and the
principal thereof; within and not exceed,
ing thirty-four years. 4. Il. .sY,ia{i5.';
The said provisions were not in oui
law until the adoption Of our presen,
constitution. Similar provisions are found
in but iewof the other State constitutions
This section has received The interpre,
tation Of our Supreme Court in the case Of
, List and others VS.. the City ofiWheeling
Il ". Va. 50l.) . So .5y rs,
I But that ease did not Gait for M opinion,
and the Court gave hone, rs to the lega!
status Of debtsactually contracted in viola
ton OF its provisions. = ,.5!-.9 q.
THE PURPOSE OF TIE CONSTITUTION. t9s6f
In the abovestatement OF the provisions
OF the section have, i'll the hope OF more
clearly presenting its meaning, changed
the order OF its clauses. t7lg y Ag
Our Supreme Court, in the case above
mentioned says: !4s.jssSS,, 4
"The section Of the constitution under
| consideration was not intended to, and
does not in any wise interfere with or pre-
vent the levying, collecting aud eNpendl-
ture OF taxes annually by authority OF law,
by the proper legal authorities OF the
counties, cities, ETC., for ncedfui and pro-
per purposes OF such counties, cities,
etc, and to do and cause to
be done whatever is necessary for that
purpose, including the making and caus-
ing 10 DO made Of contracts touching the
I disbursement OF the taxes levied and col
!; lected annually; and all this without a
vote being taken under said eighth section
OF said tenth, article OF the constitution.
It was intended to prevent the county
authorities, city authorities, &C., respcc-
lively, from creating debts against the
counties, cities, &C., respectively, without
the assent OF three tiiths OF the voters OF
the county, city, &C., voting upon the
question rs to whether tho debt should be
created, and then not exceeding the limit
prescribed in the section. The evident
object OF the section, was TO prevent
growing evil Of tho day, viz: the creation
OF large debts. the unnecessary and waste
Jul, rs well as fraudulent expenditure Of
The substance and earnings Of the people,
and unnecessary and oppressive taxation.
Whether the section will accomplish the
object or not, remains 10 be seen by ex-
perieuce. 1T is to be hoped it vii" Ia
For the status OF debts actually contract
cd in violation OF such constitutional pro-
hibi:ion, we must look to the decisions in
other States. The Constitution OF Iowa
provides as follows: &,
"No county, or other political or mu-
nicipal corporation shall be allowed to
become indebted in any manner or for
any purpose, to m amount in the agere-
gate exceeding five percent on the value
OF the taxable property within such coun-
ty, or corporation, to be ascertained2 by
the last State and county tax lists preyi-i
Gus to the mourning OF such Indebtedness"
There is no provision in the Iowa Con.
stitution like the following, which is in
the West Virginia Constitution: Pro |
ridsd, That no debt shall be contracted In- !
der this section unless all questions con-
nrcted with the same shall have been first |,
submitted to avote OF thepeople, and have
received three.ifths Of all the votes cast
for and against the same" <5f
lj STATUS OF EXISTING LIABILITIES.
tits a we'll settled principle OF law that
a corporation will he estopped or forbidden |
10 set up the plea OF ultra wires, that il, a
plea that it has acted beyond the scope OF
It's authority, rs a defense against the
claim OF a party who has, in good faith,
carried out his contract with the. corpora
ton, and parted with money, property or