Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-08-15
THE CITY BONDS.

There remains but little doubt that a
very large proportion OF the city debt was
fraudulently issued, and that if proper pro
ceedings were instituted much OF it could
be set aside as invalid The rule in such
cases should not differ from that applicable
to private obligations. Municipalities and
States are bound 10y the same law Of honor
and responsibility which constitute the
standards of private conduct, and therefore
have al the rights Of protest against fraud
which belong to individual citizens. If,
therefore, any part of the city debt iS
fraudulent its payment ought to be re
sisted
II IS not enough in such cases to say that
the bonds were issued by the authorized
officers of the city, and that hence the
people are bound to pay them. The law of
agency puts all persons dealing with an
agent upon inquiry az to the authority of
the agent Municipal officers are the agents
Of the municipality, and when they exceed
the authority vested in them they are per
sonally liable. Their unlawful acts do not
bind the municipality. either in law or in
equity
The people of this city have been spend
ing money layislly TO keep the security OF
the bondholders good. They have built
Icvecs to protect the property they have
levied take, 30 buy and beautify parks, and
TO construct superior roadways they CON
tributea literally to build a magnificent
Pavilion in order to retain the annual ex-
hibitions Of the State Fair; they gave
property 10 the State 10 secure TO this city
the seat Of State Government; they have
extended the trade of the city by liberal out
lay TO present lis claims, and by united and
untiring efforts have broadened the area of
its commerce. In allrespects they have acted
in a manner becoming an honorable and
cntcrprising people In none of these
things have they received aid or encourage
rants have not even paid taxes on the bonds
they own. II is claimed that Daniel Never
owns or holds 100000 of the city bonds,
worth, according to his own estimate,
ton, are asscssablc, since that instrument
declares that everything capable of owner
ship shall be subject to taxation. If any
one will take the pains to consult the tax
list of San Francisco, they will find that
his property is not there represented. Daniel
Meyer may plead in answer that he is only
agent of foreign owners. That is matter
we would much like to sec judiciallv in.
vestigoted. If Daniel Meyer has not, as is
reliably affirmed given in these bonds to
the Assessor, he is liable 10 criminal prose
cution, and such proceedings should be al
once instituted against him.
Ia such proceedings it will be competent
to inquire into his relations with all public
influences. In any denial he may make OF
the absolute ownership of the bonds IT
would be incumbent upon him to show
that he drew upon his principal for reim-
buTsement for moneys said TO have beer
expended in Legitimate ways. 1t would
also put ali parties connected with such
matters upon the witness stand, and either
cover them with the shame of public eX-
posture or steep them in perjury. If such
proceedings can be instituted, and the jul
dicial investigation be extended to the
breadth here indicated, we should be most
happy to suggest some highly interesting
channels of inquiry.
At all events such bonds rs Mr.. Meyer
owns should be assessed TO him. We
are paying the interest and may be forced
TO pay the principal They arc property
within the meaning of the law and are sub
ject to taxation. In exact justice they
should be taxable here They are in the
nature of first mortgage bonds upon all the