Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-09-21


were issued and s675, 900 more are about
to be.
SAID TO BE UNCONSTITUTIONAL.
The suit was brought in the United
States Circuit Court by James w. Fellows
and others, of the cities of New York,
Brooklyn and Chicago. all being taxpayers
ofthe city of Toledo, against the city, its Off
GERS and natural gas trustees, alleging that
the act under which these bonds are pro-
posed to be issued is unconstitutional, for q
number OF reasons; but those of chief inter
est are that this act authorizes the taking of
private property, for other than public use;
that it impairs the obligation of contracts;
and that 1t authorizes the mingling of muni-
cipal funds with those of other persons, and
applies public money to private enterprise
or purpose.
The leading question is whether the sup
plying of natural gas is "public use"
within the meaning of the law. There can
be no question that the taking by taxation
of the property of citizen is a taking Of
private property, and therefore can be taken
for public use only. What constitutes
public use? If the furnishing of iuel be
public duty or use, municipalities may be
permitted to borrow money, issue bonds
therefor, and purchase coal lands, provide
for transportation and distribution of coal to
the citizens, conduct a coal business; but
without profit, and tax all other coal deal
ers to supply the. deficiencies arising
from lack OF paying expenses other
wise. If it be public use
to provide fuel for heat in winter why not
ice to keep the people cool in summer? If
it be public use to supply the people with
fuel why not with clothing, shelter and
food? The broad question is presented
whether a city has right to provide
agencies by taxation upon its people includ-
ing its merchants and business people to pro-
vide consumers with the necessities OF COM
forts OF life at cost or for nothing if it
pleases; crowd the business. interests of all
merchants and people making supplies out
of trade and tax them for the support Of
their successful competitor. The question
involves
A PRINCIPLE THAT GROWS
the more it is reflected upon. 1t has been
held in many States, that taxes cannot be
imposed to aid persons suffering from a
great fire or flood. either by providing them
with money, food, seed or otherwise. II under
such conditions OF disaster public moneys
cannot be applied to such uses, by what
process of reasoning can individuals be en-
titled to like aid for fuel in the absence Of
disaster?
But the citizens of Toledo are supplied
with natural gas fuel through the agency of
two companies already existing, and which
have been in operation for three years.
These companies were chartered by the same
authority that assumes to authorize the
issue of these bonds. They have been act
ing under ordinances passed by the same
city which now proposes to issue the bonds
for the purpose of depriving them of profits.
These ordinances provide inter ALA that the
city may fix the maximum price at which
natural gas shall be sold to the citizens and
has acted on the authority. These COM
panies have been charging no more than the
price fixed by the city itself The charter
and ordinances being a contract between the
parties is this issue of bonds and setting up
a plant which will act as confscation of
profits at least violation of that contract?
If not, the property of no business corpora
tion is safe in any municipality; the pro-
lection of business is broken down.
A GRAVE QUESTION OF FRAUD.
The bonds have been issued of SO many
municipalities under taint of
fraud as to give suspicion to the whole. The
experiment OF furnishing natural gas eco
by municipality having proved
a failure in many instances; all bonds nav
Ing Deen issued pursuant 10 momentary eX-
citement and popular clamor induced by
professional boomers of real estate, which
all experience show runs its course within
a short time and leaves depression In its
stead; the question of the real value of
bonds issued for natural gas pur-
poses would seem to be answered.
Further, if this act be declared unconsti-
tutional on the grounds stated, it will in
validate nearly all the bonds issued for like
purposes by all municipalities in the State;
a result greatly to be desired by the tax
payers in those municipalities in which the
gas has already failed, and during the
tendency of the act on every person who
buys city of Toledo bond issued under the
authority of the above recited act. buys a
lawsuit.
Whether the city does or does not repu-
diate these bonds at maturity, and whatever
the result of the present action may be,
the taxpayer not Joined may still have his
remedy against the taxation after it is
levied to meet them. Such bonds cannot
be considered as having any considerable
financial value until the litigations are de-
cided and the constitutionality of the act
is finally passed upon. G. HARRISON.