The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-30
LIABILITY FOR GRADE TAXES.

The Supreme Court will be called upon
this week to determine the same point on
two different cases, namely, whether the
cost of street improvements assessed
against private property benefited is part
of the municipal indebtedness whose limits
are prescribed by the constitution It is a
side issue in one case, but the main issue
in the other; in the former it is as to the
grading under the old charter, in the latter
under the new charter.
In the first case it is set up by plaintiffs
that all unpaid street grade taxes do form
part of the city's debt. The preponder-
ance of testimony as to usage is that they
do not, although there seems to be neither
general law nor general practice suf-
fcient to establish it beyond all
doubt. The corporation counsel,
Judge Jacobs, declares the liability so far
as the city is concerned to be conditional
and therefore having nostanding. 1t does
not seem reasonable that these expenses
should be part of the general indebted
ness unless by action at law the direct re-
sponsibility has been cast upon the city.
payments are made by the parties as
sessed, and the unpaid balance is presum-
ably due by the property-holders upon
demand, or recoverable by action. 1t may
be carrying the principle to an absurd ex-
treme, but the city might almost as well be
said to be in debt to the amount of the
money paid in for saloon licenses, because
the city is subject to rebate if the licenses
are surrendered, and that rebate would be
payable out of the general fund.
The conditions under the new charter
are different because in the payment by
bond" system to which exception is made
in the other suit now before the Supreme
Court, the.city, in its warrants. specifically
guarantees payment at the end of ten years
if the property-holders do not. Neverthe-
lsss, if there is thereby general liability
incurred it would not arise until the date
of payment and only then if the property
owners did not pay. Even then, as the
city has lien upon the property assessed,
it can recover. A parallel case is the en-
dorsement of note, the endorser of which
would certainly not consider himself in
debt to the payee until maturity and fail
ure of the payor to take it up.
There is still a wider difference between
general Indebtedness and a grade tax. The
first may be incurred by the city council
of its own accord up to certain limit, and
with the concurrence of the voters beyond
that limit. But grade taxes are incurred
at the direct request of a majority of those
to be assessed, and with ample opportun-
. ity for any who object to enter protest.
If the provisions of the law are observed
the procedure is in the nature of a ratifica-
ton and assumption of the debt by those
who, alone, are supposed to pay it. The
voters generally are hardly in position
to vote for an expenditure which they are
very unlikely to be called upon to defray.
There is small incidental proportion of
the amount, such as for surveying and in
tersections of streets, which the city bear
but it is payable out of the general fund
and would only form an Indebtedness if
that fund exceeded the city's power to
replenish by the regular annual taxation.