Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1884-10-25
THE FINANCIAL STRAIT
In Which the City Of Wheeling Finds
Herself.
Opinion Of the City Solicitor as to the
Legally of the Debt. How to Fund
and How to Prevent q
Recurrence.
To The Mayor and Council Of the City
of Wheeling.

To tie Mayor and Council Of the City
Of Wheeling.
CONTINENTAL your last meeting res
olution was adopted calling upon me for
IN opinion as to the legal status of the
present floating Indebtedness of the city
md how it can be funded, and for sugges-
ions as to the means that should be adopted
o prevent financial embarrassment in the
uture like those at present experienced.
To give anything like full answer to
be first branch Of the question, that is, as
o tie legal status of the floating indebted
ress, requires an inquiry into the nature
and extent Of the authority of the city to
lecome indebted, and into the cause and
source Of the present floating Indebtedness.
AUTHORITY TO CONTRACT DEBT.
Section eight of Article ten of the consti-
ution Of this State, adopted in 1872, pro-
ides that no county, school district or munic-
pal corporation shall be allowed to be
ONE indebted in any manner, or tor any
purpose, unless all questions connected with
he subject of mourning the Indebtedness
hall have at first been submitted to vote
Of the people, and have received three-htths
If all the votes cast for and against the
same. The same section also forbids coun-
les, school districts and municipal corpora
lions from becoming indebted, even with
The consent of three-fifths of the voters, to
an amount, including all existing indebted
ness, in the aggregate exceeding five per
cent of the value OF the taxable property
herein. as shown by the last assessment for
State and county taxes. 1t also plainly
provides that debt so limited in amount,
cannot be lawfully contracted, even with the
.onsent of three-ffths OF the voters unless
nrovision is made at the same time for the
objection Of a direct annual tax sufficient
20 pay annually the interest on such debt,
and the principal thereof within and not
exceeding lhirty-four years
The said provisions were not i'll our law
until the adoption Of our present constitu-
ion. Similar provisions are found in but
lew CT the other State constitutions. This
action has received the Interpretation of
our Supreme Court in the case of List and
others vs.. the city ofWheeling, ". Va.
sol. But that case did not call for an opin-
ion and the Court gave none, as to the
legal status OF debts actually contracted in
violation of its provisions.
An Apostle CASE.
In the above statement Of the provisions
4 the section. have, in the hope OF more
Hearty presenting its meaning, changed the
rider of its clauses.
Our Supreme Court, in the case above
mentioned, says:
"Thc section oi the Constitution Uudcr cDusidera-
ion was not intended to- and does no. IN any wise
interfere with or prevent the evying, collecting aud
xrenditure OF taxes annually by authority OF law,
the proper legal authorities OF the counties cities
&c. for re diul and proper purposes oil such coun-
e. cities 6c and to do and cause TO be done what
yer is necessary for that purpose, including the
making and causing To he made contracts touching
he disburSementof the taxes levied aud collected
annually; and all this without a vote being taken
under said eighth section Of said tenth article OF the
Constitution. Ii was intended To DrsFem the county
uthorties city authorities, &c, respectively, from
Grating dejiS against the counties citi es &C. re-
>pectively, WhhOvf he assent OF three-ftths OF the
voters OF the county, city, &c, voting upon the
question aS 10 whtther the deb, should I've created
and then not exceeding the limit prescribed in the
section. The evident object OF the section was to
,rrvcnt growing evil ~ the day, viz: the creation
81 large debts, the unnecessary and waSteiul rs well
20, fraudulent expenditure OF the substance aud
"rning' oi the people, and unnecessary and oppreS-
i've taxation. Whether the section will accomplish
lie object not remains to he seen by eNprrien e.
= i 10 he hoped it will"
For the status of debtsactually contract
d in violation Of such constitutional pro-
ribition, Mr. kTskine cites several Iowa and
llinOis decisions, in which an innocent
bird party was held unable to recover from
city when the debt was in excess Of the
constitutional prohibition. He then pro-
leeds as follows
DEBT iN EXCESS Is VOID.
believe that the decided weight OF
authority is to the effect that any kind OF
contract creating municipal Indebtedness
exceeding the amount which the COpstitu-
ton declares must not be in any wise ex-
,cedtd, is void, ana no; only so, but that
the creditor under such void contract is
without remedy Of any kind.
All persons dealing With the corporation
IRE bound to know the limitation imposed
! law, and are bound to know, al their peril
whether it has been exceeded o. not--unless
he city is estopped by false official state,
,ncnts By the corporate officers, Of matters
| which they had authority, by law, to deter
uire and state Dixon County VS.. Field
I'll L. S. Rep SO.
But the floating Indebtedness Of the city
# Wheeling which is now little over two
undred thousand dollars when added &c
he bonded Indebtedness, does not ! believe
cause !be aggregate to exceed FIVE per cent o.
'hs value Of The taxable property in Wheel
ing. as shown by the last assessment for State
| md county ,sacss; Therefore the city Ia;
only violated the provision d our c6hStitu
lion which forbids any debts to be contract
ID without first having the sanction ofthree
iifhs OF the voters upon all questions con
nected Herewith.
have given the law above quoted ia re
ard TO debts in excess of the five per CEN
| limit as the best index to what NAV be the
Jaw upon municipal debts in our State. con
tracted without the consent Of the voters
because | have failed to find decision.
which will come nearer to a determination
of the status of our floating debt But there
are many considerations which NAV affect
the bearing of those decisions upon the
floating Indebtedness
THE FLOATING INDEBTEDNESS.
The greater part of what is termed the
floating indebtedness Of the city is now
evidenced by unpaid city orders, that
| is, orders or warrants issued by the city
clerk, which direct the receiver to pay to the
order Of the persons therein named the
amounts Of money therein specified
But it will be neither 20 rect nor suffi
cient 10 regard either the issuing Of such or
,!erS by the clerk or the acceptance or
acknowledgement thereof By the receiver as
tbe act BY which the indebtedness is incur
ed or contracted
Many OF these orders were issued to pay
interest Or principal or both, of bonds which
rad been regularly and lawfully issued and
ah;ch were required to be paid under the
provisions Of various loan ordinances Of the
city.
Some Of the orders we're issued to pay
alaries of officers whose duties and com
cnsation were long ago established.
AS to all Of these things (last mentioned)
the ordinance prescribing the duties of the
city clerk authorizes him to issue his order
IN the receiver for the amount thereof when
due
Other orders were issued By direction Of
Council for the payment of various claims
the principal part Of which arose from con,
tracts made under direction of the Council
snd Of the City Board Of Public Works
After the money in the treasury was ex