The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1890-04-05
Observation-Disclosures
Logan Must Repudiate Seine
Fifteen Thousand Dollars.
FIX OF THE LATE CITY OFFICIALS
The Money Loaners Will Probably Bring Suit
Against the Late Councillors to
Recover the Money.

oondence of THE HERALD. There is some
thing of sensation in this city over de-
velopments in the council last night and
the action taken by that body. The matter
will be best explained by the following:
10 the Hon. Mayor and City Council:
Gentlemen:-A your first meeting two
weeks ago you did me the honor OF appoint
Ing me city attorney, for which please re-
ceive thanks. 1t is with regret make the
announcement that, for time at least,
will be unable to be associated with you In
that capacity in ar official way, because Oh
ineligibility, the law requiring the holder
of that and all other offices In the city to be
a qualified voter here. However, at the
request of the mayor and finance commit
tee, have been engaged in looking over |
and advising with reference to some mat
tiers affecting the municipality, and IL SUCH
service meets with your approval, L am |
willing to continue in it so long as may be
desirable.
We have been engaged, among other |
things in an investigation OF the city IS |
fiscal condition and the conclusions |
reached do not seem to be gratifying In
any sense.
city may incur is limited by the law Of
Congress of July 80, 1886, to per cent. OF
the assessed value of all the taxable prop
erty within the municipality, and the act
peremptorily forbids the creation OF any LA
bilities whatever beyond the amount thus
ascertained, declaring that any bonds or
other obligations in excess of such sum
shall be void, and the legislature is pro
hibited from passing any laws in conflict
with said act. This is the supreme law
governing the case; anything correspond
ing with or falling short of its provisions
would be legal, but anything opposed to
be- exceeding them ~0a'o De n'iii'y a.
THE city charter makes a different pro-
vision: that is, that the corporation may
borrow money for city purposes the IN
terest on which shall not exceed one
fourth of the city revenue arising from
taxes of the previous year, while sub
seouent act of the territorial legislature
substantially reitterates the law of Con-
eress. l do not regard the provision re-
ferred to in the charter as having any valid
ity whatever, because, while 1t might not
transcend the superior law In It's operation,
1t is so constructed as to admit OF evasion
and duplicity, and to this L take It, we are
largely indebted for the existing compllca-
items. Not the least mischievous is the
ambiguity conferred by some people upon
the words revenue and "taXes," they
claiming that all forms Of obtaining money
from the people for public purposes is taxa
ton. AS it is my judgment that that por-
ton of the charter should be ignored,
do not care to discuss the proposition any
further than to say that in this instance
at least taxes obviously does not
include licenses or s'fines,n either
of which are in most cases fruitful
source of revenue. Ii licenses were in
Guided, the council would be placed in an
anomalous position, because the greater
part OF the revenue raised by means OF
licenses comes from occupations recognized
as unwholesome aud which therefore, you
would be in duty Gou nd to contne TO the
parrowest possible limit; that is, while
under a solemn obligation to increase the
welfare of the city by means Of increased
revenue, you would also at the same time
have in view the curtallment OF It
And this very circumstance goes to show
that a bonded, or, IN fact, any Indebted
ness could not with safety or certainty b
based upon such means OF income, 1
being shifting, uncertain, and indicating
more healtnful condition of things when /
does not exist at all. Certainly the law
makers would rest no such proposition upol
so unsettled and undesirable condition.
1t would then, gentlemen, appear tina
YOU ara not only to take no steps and er
gage in no legislation looking TO the pay
ment, settlement arrangement or dlspos
ton of any financial charges or claim
against the corporation after the debt
the aggregate, including interest, h
reached the legal limit, but that all sue
charges or claims shall be ignored. To
silent or inactive on this subject would b
equivalent 10 improper action, as you al
- charged with the TASK of remedylng eXlsun
Z wrongs and.removln9from the body poliu
4 everything that even threatens 1t. Looklr
to that end ] respectfully recommend II
adoption of the accompanying resolution.
The satisfaction of those who hold bond
certificates, checks, or other prirnd fac
evidence of Indebtedness. and who will
affected by the adoption of the resolutio
is not a subject of legislation by you al
therefore you will not, as officers OF u
city at least, take such a subject into co
sideration. While in general way repud
alton is harsh and not infrequenly ;
unjust and even dishonest performance,
cannot be considered so in this instanc
Here it is a public duty, an immedla
necessity, as to deal with the matter in al
other way, or to not deal with 1t
all, would be to recognize as
entity what the situation demands y
will officially promulgate nullity.
The report of the auditor of the past fsC
o. year, just published, does not seem to
satisfactory in all respects. For examp
we find an outstanding contract for t
purchase OF certain property for 5000
part of which appears to have been pal
Of course this will not be recognized, a
steps should be taken to secure the retu
of this or other moneys improperly pi
out. The transaction is ignored by t
auditor. III would seem 10 De proper I'll
all these subjects receive immediate ate
ton, in order that where money is claim
the parties may have the benefit of an eal
notice that the city is not responsible, a
that all that is recoverable may be rec
cred.
The patent fact that property has I
been assessed at a fair valuation, bel
greatly beneath what it should be, does
help the matter In the least 1t is not wi
should be but what is that governs. O.
gress has the power and would doubtle
if applied to, have the disposition to
4 large the city's borrowing power; but i
questionable if it would consent to the /
Il ifcation of condition OF things crea
In opposition to its plain and direct p
visions.
The rule of law that no corporate be
shall transcend its charter or the La
made by proper authority regarding it,
the correlative fact that what is
granted is withheld, are so well understC
and universally recognized that the ~
ton of them alone is sufficient.
Respectfully submitted,
S. a. KENNER,
Attorney
The resolution accompanying the abo
and which was adopted, repudiated
disafirmed all the city's financial obi
tons in excess of the legal limit as |
scribed by Congress Transactions in
the course of consummation were stopI
and steps are to be at once taken
\