Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1886-01-20
Collection OF Mu,.,cipaz Debts.

TIE the Editor Of the Chicago Journal:
CHICAGO, January 12-My attention
having been called to the recent article
in your paper commenting upon decis-
ion of the Supreme Court of the United
States at the present term, in a manner
somewhat rejecting upon the value of
municipal securities by reason of the
doubt supposed to be Cast by that decis-
ion upon the ability to collect them, l
desire to make a few suggestions in
respect thereto.
The decision in the case referred to
holds that court of equity has no juss-
diction to appoint an officer to collect
taxes to pay debt of the municipality
which has been reduced to judgment,
even though there may be no other rem
edy for the creditor This decision does
not, as by your article is supposed, en-
brace any new principle in that court.
Many years ago it repeatedly decided
that equity would not assume jurisdiction
for the leyying and collection of taxes
for such purpose, because the power to
direct tax to be levied and collected is
essentially a legislative and not judicial
power in this country; and because it is
beyond the power of the Federal judici-
airy to assume the place of the State in
the exercise of such authority.
But while this is the holding of that
court, still it is true that the holders OF
municipal securities have ia almost
every case an entirely adequate remedy
in the writ of mandamus to compel the
levy and collection OF taxes sufficient to
pay their demands after they have been
reduced TO judgment. The cases where
they have not are only the exceptions,
and only arise where bonds have been
irregulaSly issued and the people have
received no equivalent, or where they
have been jmproyideutly issued by care
less officials to a much larger amount
than should ever have been done, In
which case the taxpayers feeling them
selves victimized, in sheer desperation
resort to extreme measures to defeat what
they regard as unjust demands Such
was the case decided by the Supreme
Court to which you refer. 1t may be
safely affirmed that in every such case,
where the demand in justice ought to be
paid, time and the law will secure such a
WliuCul SCCAlDS " luN Col
courts of equity with powers they do not
possess Where officers abdicate their
functions or refuse to qualify, the NUM-
cipality cannot always remain In chaos,
and when officers are found who will
serve, the taxes for all purposes can be
collected; or if the tax for the odious debt
be excepted. in just case the Leglslat-
ure whose just province it is, would
doubtless interfere. But such cases where
extreme measures are requisite are be-
coming rarer every year. Recent con-
stitutional provisions have put lust
limitation upon municipal indebtedness,
in nearly all the states OF the Northwest.
Rarely now can any large Indebtedness
of this character be incurred without
submitting the proposition 10 vote OF
the people. Besides, investors profitiEg
by the experience of the past almost
universally make a close investigation to
ascertain whether the proposed securities
are TO be issued for strictly municipal
purposes; whether the amount is within
the constitutional limit OF Indebtedness:
and whether the particular law under
which il is proposed to issue them has
been fully complied with. So, that it
is now we'll high impossible TO float
bonds upon the market upon which there
rests suspicion of irregularity in issue.
The result is thar the great bulk OF the
municipal Indebtedness of the Northwest
is as safe and reliable security as any that
exists. and stances in no more danger OF
captious defenses to its collection than
any other class of legitimate commercial
paper.
But if men, abandoning ordinary pru-
dence, will invest III wildcat securities,
or in those which, though technically
legal, yet ought never to have been
issued, they viii no r5ceive much public
sympathy, though they encounter such
obstacles in collie citing them as were met
with in the case you c:iticise. That de
cisior was right, tut it will in no manner
affect the validity, the value or collection
Of any municipal securities which are
legally anu legitimateiy issued.
CHARLES II W.OD