Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-11-12
CITY Cases in the Supreme Court.

Yesterday the case of the Funded Debt
Commissioners vs.. The Board of Trustees,
which is an action for mandate TO compel
the Board of Trustees to levy tax OF 10
cents on each 500, to be used in purchasing
bonds and coupons under the ACT OF !ofz
creating the Funded Debt Commission,
came up for hearing in the Supreme Court.
The case was argued by w. A. Anderson
for the Trustees, and w. H. Beatty Tor the
Commissioners. 1t was contended by coun-
sci for the Trustees that the Act OF io'z Is
now unconstitutional and VOID, because
Section 13 of Article Xl. of the Constitution
of 1879 declares that all special Conmis,
sions attempting to exercise any municipal
functions are prohibited and that the COM
mission named comes within that consii-
tutional inhibition that this section is SELF
operating and does not require any legls-
lation to render it effectual; that Section L
of Article xxi. declares that any statue
inconsistent with the Constitution Is AFRO
gated and repealed. The attorney Tor the
Commissioners claimed that this provision
of the Constitution is only prospective, and
relates solely to subsequent legislation and
was not retroactive. IT such con-
struction was placed upon this instrument
all our codes would come under the same
objection.
After argument the cause was submitted
on the briefs on file.
The cases of Hausmeister VS.. Porter and
Bates VS.. Porter were considered together,
they both being applications for mandates
to compel the Treasurer to apportlon 90 per
cent. of the gross revenue of the Water
Works into the interest and sinking fund
w. C. Belcher and A. C. Freeman repre-
scented the appellant, Bates, and A. 2. Cat
lin and w. A. Anderson appeared for the
respondent, Porter. The arguments were
directed to the Interpretation OF Section 30
of the Act of 1858, known as the CoDsol-
idation Act. under which the bonds OF
1859 were issued. This section says that 90
per cent. of the revenue from taxes, lines,
Cdter rents, shall be paid into the
interest and sinking fund.
1t was contended by the counsel for re-
spondent that the word revenue" as
found in the Act of 1858, means the net
accretions to the city from water rents, after
deducting the current expenses of the
works.
Also, that the new Water Works are
ENTIRELY different from those of 1858. and
subject to that Act, and that the subsequent
legislation upon the subject giving the cred
itors SO per cent. of the net revenue was
not an impairment of the original contract.
1t was urged by counsel for Bates that
the creditors are entitled to 30 per cent. of
the gross revenue, as clearly intended and
expressed by the Act of 1853 that no other
reasonable conclusion or Interpretation
could be arrived at; that any less amount
would impair the obligation of the original
contract, and any Act authorizing such an
act would be void. The arguments were
long and elaborate upon the Interpretation
of Section 35 of the Act of 1858. There
was a strong point made upon the acqui-
escence by the creditors in the payment of
55 per cent. of the net mater rents for more
than twenty-three years, and that this
amounted TO consent to this interpreta-
ton.