The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-12-18

state constitution prescribed limitations
not so narrow. IL per cent. of the
assessed valuation as the limit of debt to
be incurred by the corporate authorities
without the sanction of popular vote,
and 5 per cent, as the limit even in case of
assent by popular vote, with the rroyiso
that with such assent y city might incur
more debt, not exceeding ) per cent. adj
ditionaI, for supplying itself with water,
light or sewers. This was limitation,
not grant of power. In the act of the
legislature approved February 6, 1880,
came the grant of power. In sections |, =
and it conferred upon municipalities the
power to incur debt, to the full extent Of
the constitutional limitations and no
farther, and subject, as those limitations
required, to assent by popular vote to the
mourning of debt in excess OF Ia per cent.
In section the act authorized the funding
of existing Indebtedness, provided that
the Indebtedness funded shall not, with all
the existing Indebtedness" exceed ~ per
cent s'unless such Indebtedness shall have
been authorized by the assent of three
fifths of the voters of such city" Sections
and 8 validated by their own force, not
withstanding previous charter limitations,
previously incurred municipal indebted
ness not exceeding Ia per cent, and pro-
vided for the validating, by the assent of a
popular vote at an election held for that
purpose, of previously incurred indebted
ness exceeding IL per cent. and not ex-
ceeding per cent; but the operation of
these validating provisions was in terms
connncd to indebtedness then existing.
Now, at the time of the passage of this
act of February 26, our city Indebtedness
/, exceeded the old charter limit of $50 900,
but had not reached IL per cent. of the
then assessed valuation. All the excess
therefore validated by the mere force of
the act of February 70. Thereafter the.
citys debt went on increasing, until, at
some date in the months of April or May
last, the Indebtedness upon city warrants
drawn on the road and ire funds, respect
lively, added to the $4,000 of outstanding
Grant street bridge bonds, but reduced by
any balance then in the ''city fund" (which
fund, and which alone, could be trans
fcrred to the credit of any of the special
funds, and thus could legally be offset
against them in computing the total city
indebtedness), reached the amount of
$4,000, that is, IL per cent. of the then
assessed valuation of property within the
city, which was in round numbers about
$i6,00O,000. The exact date when the city's
net total debt reached this figure can be
ascerained only by minute examination
of the city's books; but it is safe TO set
the date down as during the months of
April and May, $780, All of the warrants
drawn on the road and fire funds prior to
that date, whatever it was, which have not
since been called in and paid, but are yet
outstanding, are unquestionably valid,
and the proper subject of funding
scheme pursuant to the act of February
26 and the provisions of our new charter.
But since that date the total city debt has
never decreased, but has gone on steadily
growing; and all warrants drawn since
that date on the road fund or fire fund are
absolutely illegal and void, and constitute
no debt of the city, inasmuch as they are
an attempted contracting of indebtedness
by the corporate authorities, amounting
with previous indebtedness to more than
IL per cent of the assessed valuation and
not assented to by popular vote. And it is
elementary in the law of municipal bonds
that bonds issued to fund warrants which
in their inception were beyond constitu-
tional limitation of the debt mourning
power, are themselves as void as the war
rants on which they are based. Lake
county VS.. Graham, $50 U. S., GA.
These warrants issued since the city's
net total debt reached the sum of $40, 900,
although not binding as legal obligations
of the city, are moral obligations of the
strongest kind. By means of the currency
that they have gained in financial circles,
the city has been enabled to continue the
rebuilding of its streets and wharves, and
the perfecting of its fire apparatus and
maintenance of its fire department. These
things were absolutely necessary to the
growth, prosperity and even safety of the
city; and the public have received full
value for every dollar of these warrants.
There should be no thought, of course, of
any other plan than to pay them, and to
fund them as soon as possible; but neither
should these warrants be funded into bonds