The morning call., 1893-06-15
OAkLAND'S FAITH.
Validity of School Bonds
to Be Tested.
Attorneys Agree Upon Controversy
as the Best Way to Settle
the Question.

The validity Of the Oakland school
bonds is at last to be tested.
Davis and Hill, representing the bond
holders and the City Attorney. have de-
cided that the best method of procedure is
to bring the questions before the courts In
the form of a controversy rather than
suit
The bonds, valued at 100000, were is
sued year ago, and bought by the bank
ing firm of Blair & Co., New York.
The recent decision in the San Diego
cases has alarmed the firm and caused
them to institute proceedings at once to
test the marketable value of their Oakland
possessions.
Blair & Co. asked advice of the famous
law firm OF Dillon & Hubbard. who in
turn submitted the entire matter 10 Davis
81 Hill of Oakland. with instruct ons to set
to work at once and have the validity of
the bonds tested and the matter finally
settled.
Mr., Davis decided that the best course
would be not TO relv on mandamus pro-
ceedings or that of injunction, as the legal
basis would be too narrow, only one Off
cial being able to be reached at time aud
the merits of the case could not be so care
1uliy touched upon.
| at interest to submit the controversy with
out action according to sections 113S. 1139
| aud 1l40 of the Code of Civil Procedure.
The most important section is No. 113S,
| and reads as follows:
| Parties to question in di ference which
might be the subject of acivll action may with
out action agree upon case copfalnlng The
facts upon which the controversy depends and
present submission of the same to any court
| which would have jurisdiction Ii an action had
been brought. but IL Dy atfidaVit
| that the controversy IS real aud the pr oceed-
| ngs in good faith to determine the rights of the
| parties. The court must theTeupon hear and
determine the case and render judgment
thereon as II au action were depending.
This method of procedure requires the
parties to agree on stipulation covering
all this facts and the court will only have
to pass upon the law. All Issues of fact
| oftener agree upon this stipulation this
procedure would be more frequen tly
| adopted.
As soon as the Superior Court renders
| judgment tho case will be carried to the
Supreme Court and a final statement be
| made.
The point at issue Is whether or not the
city Of Oakland, viewed as a school dis
trict, was required to proceed as an
ordinary school district and to issue bonds
through the Board of Supervisors.
The City Attorney recently advised the
| hOauo VI HUI w pdy huy dt-
tention to the notices that have been
served upon them on behalf of the bond
holders, stating that personal RESPONSE
bllity will not begin until there is an in
junction issued by court.
| The City Attorney has further stated
that in view of the strong wording upon
tine face of the bonds, which make them
| equivalent to promissory notes. they
may be valid obligation whose payment
could be enforced against the city, even if
the election were not in all particulars
called and held according to law.
Mr. Davis proposed plan of proceeding
was submitted to Dillon & Hubbard and
warmly indorsed by them. Judge Dillon
formerly passed uDon the bonds and ad-
vlsed Blair q Co. to purchase them. Mr..
Davis stated yesterday morning that he
would begin work on the preparation of
| the brier to-day. and is in hopes Of carry