Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1893-08-03
INJUNCTION Talk.
Lawyers Opinions on The IIll5Iliiy
Of Oily indebtedness,
CASTS IN FONT ARE CITED.
The Act Of Congress Does Not Apply
Merely to Outstanding Bonds.
All Indebtedness Included.

Tho question Of the city over
whelming Indebtedness II on almost
every tongue ana Sc being discussed to
the exclusion OF many important mat
terra. Businuss men and heavy tax.
ioyors uie most cxorciFod ana not d
few Of them have consulted their nt-
torneys IN relation to the matter. No
less than hnlfa dozen legal firms have
been conaiderlng The CO. dlli0n OF
alfalfa today and Il ia their unauimsus
opinion that Injunction proceedings
can be legally Instituted rgeinsi the
municipal authorities 10 check their
rulnoua pace.
There has been some dispute a. to
the existing liability Of tho city, and as
TO whether or not It can lawfully con.
tract Indebtedness over aud above the
Sum total Of percentum OF the as
oesscd valuation OF city properly for
territorial and county taxes ior 1899,
which amounts 10 81 ,0j4,32O
The city's indebtedness now stands:
l'onds sold ............. ....-......il ,'to01l
Annual interest on anuic,,,.....,s tHlUl1
Vuutandiug warranie,......... .0HHJ
sL059u
This, Il will be seen, IA considerably
IN excess Of the limit placed upon It by
tho law.
One " the leading law firms Of the
city nguies cut the obligation OF the
municipality 10 be iRr Beyond this
even. They say that the 100000 that
the city Will be called upon ~ pay W.
ita PORTION Of the contract towards
the completion Of tho l0iut
city and county building, the $4,000
that will bo due the Electric Light
company before ats contract expires,
and even the salaries Of the present
elective iiicialp, come within the def.
milton Of the term "lndebtodnessn M
used In The act Of CongIess. 10 sub.
stnntiate their claims IN this respect
they elite numerous authorities, among
which are the following;
In the case Of Lake county, Colorado,
VI Rollins, 1870 u. 3. 062, Vol. XVI
American and English Corporation
case, tho following language occurs
nesa-Hpplicatlon OF Constitutional
Provision - Cuupllsosy. Obligation.
THE aggregate amount OF indebted.
nets OF any county Tor all purposes
shall not exceed specified limit tx.
cept upon vote by the county, applies
not only 10 loans contracted, but also
TO warrants issued for ordinary county
expenses: G. q, fees and salaries aud
other compulsory obligations imposed
by statute"
On page 1925 under the canton
Municipal Corporations In the Amer.
lean Encyclopedia Of Law the ques.
ton "What Indebtedness In Prohib.
itedY" Is asked In clause relating g.
"Bonded and Floating Indebtedness. D."
The same authority gives tho answer
In the following unmisiaksble WORDS
Thoro Is no distinction Ia reason bo.
tween tho ease Of entire absence Of on |
actment comforting power and the pro- |
hlhition OF Its exercise beyond "a ceriAin |
limit Accordingly tho prohibition Is
usually construed tOapply tOindobtodnoss
of all forms Incurred Ia any manner or
for any purpose whatever, and Is NOS
merely applicable to bonded indebted
ness.
In support Of this long list Of oises,
among them One decided by the
Supreme Court Of the United States,
Is cited.
A recent case decided by the gu
prene court Of West Virginia IL Ill.
reoily in point. II grew out OF an
agreement between the city OF Parkers.
burg and the Thomson Houston
Electric company, wherein tue latter
agreed 10 erect aud maintain an electric
light plant, on this understanding that
they would receive a quarterly install.
ment for It's use for a period OF five
year., at the expiration OF which time
II would be turned over to the city for
tho sum Of 81.
In regard to the clty's obligation the
court held;
"In tho constitution Il means any dobt
created by contract, express. or Implied;
any voluntary mourning " any liability
10 pay In any manner, whom tho given
limit OF indebtedness has boon reached.
Il may be n dobt payable In tho future ns
we'll as payable presonilyi ons payable
lpon some contingency, such ~ tho de-
livery Of property as VOL as for propertv
slroady delivered. Whom tho contingency
happens the debt becomes fixed; itexists.
IL can make no difference
Sholhor tho debt be- for necessary our.
'ont expenses or for something else. ,
BY tho term indebted. |
less, a. moro used, Is meant tho stale Of
ering by voluntary obligation, express
" implied, under legal liability to pay In
he present or at some future tlm6 for
omething already received or Tor some-
hing yet 10 DO furnished or rendered.
This includes oyery kind Of iudobtodnoss
10 matter in what manner created or ,
brought about, or Tor what
purpose, whether Il DO Tor municipal
elf-pr0sorvation or not; whether Tor
luro air, pure water good light, .
lean and convenient and safe /,
troots aud sidewalks; whether IL be
ayablo now or hereafter, quarterly or :
or ut any date running on
year,; whether for current c
n onses or Tor liked and definite debts
r charges whether for personal proper. /
y or real properly, loAse.Or freehold. IL /
mono the less indebtedness, created 4
4 some manner and for some purpose,
nd is within tho puryiow and tho bar OF a
no constitution" !
II il also held In tho same ruling
hat ga city indebted up to tho limit
Xed by the constitution cannot carry
n its operations upon credit within
ie meaning OF credit In the c0nstitu.
on in any mAnneEOr for any purpose, 1