The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-02-03

sl.435.ooo will make a total bonded debt of ST.
7ooO00; which, with the $4,000 due upon war
rants issued since March Z, 1871, will make the
entire financial burden OF the city an even
s3,o00,000
II this bonding scheme is recommended by
your committee, adopted by the city council and
sanctioned by the voters. the city should be able
with careful management to avoid the creation
OF any further floating Indebtedness, not pro-
yided for by this scheme, until the taxes of 1892
shall become available. And il a sum adequate
10 the actual needs of the city shall be raised py
tax levy in 1892 the city will then have fairly
entered upon era OF freedom from floating
Indebtedness and OF assumption and discharge
OF its burdens they mature. by adequate taxa
ton, and may hope never again to find itself
laboring under such financial difficulties as
recently.
Upon the legal side of the subject, therefore. I
respectfully advise your committee that il can
recommend the proposal of issues of bonds as
last above scheduled, without any grave danger
that the legality OF such bonds will be denied by
the courts. But must say this with one quail
fcation: II the outstanding bonds issued for
water and sewer purposes, 1856. 900. and those
proposed TO be issued Tor the same purposes,
s395000, are not to be counted on the first ) per
cent. OF municipal Indebtedness, under the con-
stitutonal provision imposing succession of
limitations upon such indebtedness, then all
the other Indebtedness above mentioned, exist
ing or proposed, viii fall well within the per
cent. limit, which. upon our current as
sessed valuation, is about s., 100000 It is
likely, in view OF the opinion expressed by tho
supreme court in the decision of the case OF
these water and sewer bonds will not be held to
count as q Part of the first 5 per cent. of the
debt no matter in what order the debt is in
Cured. But that opinion. on the point in Ques-
ton. was q mere o5fter dctum the point not be-
ing necessarily Involved III the case; ana the
correctness of that view had previously been
much doubted by many lawyers, and an or
iginal question would still be open to grave
doubt, and i. is possible that the supreme court
on a denomination of the question may not
feel bound by It's dictum in the Austin case, but
may finally hold otherwise. II it were to do so,
all of the proposed new bonded debt
falling, when added TO the existing
bonded debt. beyond total of
s., $50 600, would be held illegal, as beyond the
competence of the city to incur even upon a
popu ar vote, with the exception of the proposed
new bonds for the water-works and the sewer
age system But, as stated the greater posi-
bilIty Is that the supreme court will adhere to
the view that only debt incurred for ordinary
purposes, other than water works and sewers
should be reekoned i'll ascertaining whether the
Der cent limit has been exceeded; and, If hat
view is taken, the whole OF the proposed issues
will be free from objection to their validity on
constitutional grounds. Ordinances providing
for the submission to the popular vote of propo-
sitions for the sundry bond issues above sug-
gested are herewith submitted Respectfully,
THOMAS K. SHEPARD.
The aldermen will meet tonight to take up the
city election ordnance, and the delegates will
consider the same ordinance tomorrow after
noon at O'Clock.