The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1893-01-05
sAUK CENTRE HERALD
TauRsDAY. IAN. s. 1898.
THOSE BINDS.

THOSE Bonds.
On the thirtieth day of December 1882
the township of Sank Centre issued
1000 in bonds in aid Of the Little
Falls and Dakota railroad, drawing
eight per cent interest and payable ten
years from that date. They matured
last week, and no provisions have been
made for meeting them either by pay
r,1ent or extension. At that time the
village of Sank Centre was part and
parcel Of the taxing district, and voted
almost as a unit for the issuance of the
bonds-in fact there were only a hall
dozen votes against the bonds IN the en-
iretownship. In 1884 a question came
up as to the liability of the re-incorpor-
ated village of Sank Centre upon these
bonds, and the village attorney then
wrote an elaborate opinion, at the re-
quest of the village council, in which he
declared tqat, following number of de-
-cisions OF several courts. including the
supreme court Of the United States and
softhis state. that no liability rested up
sosithe city.at all-that the territory in
corporated within the village was, by
that act. exempted from payment of any
part Of this Indebtedness. This opinion
was filed with thecity clerk. The feeling
then was that inc equity the village should
pay its proportion of the debt, and in
1885 special act OF the legislature was
passed making principal and interest
charge upon the village in proportion of
its assessed valuation to that OF the
township. theiamount to be determined
by the geneIal assessment from year to
year. Under this law the village, and
subsequently the city after its incorpora-
ton, has continued to pay its share of
the interest upon these bonds, the
amount determined as prescribed by this
special law.
The value of this law has frequently
been questioned as a purely legal propo-
sition, but it has been accepeed as bind
ing. and the people have acted upon it in
thirds of the interest every year.
But now arises another, and far more
important dilemma-how are these bonds
to be paid. Neither township or city
have made any proyisions for meeting
them, and the creditors very naturally
want their money.
Last summer the town board and
the city council met together to consider
the matter, but no agreement or I'M
Outstanding was reached. and 1T is under
stood that the township has very pro-
perly employed N. H. Miner to protect
its interests. No one familiar with the
matter from first to last will dispute
deny that the city is in equity bound to
paw its share of these bonds but there
seems to be legal lion in the way. If
no liability rested upon the village, as
the village attorney then held, could the
legislature create such liability by enact
ment? The charter provides very clearly
that the village indebtedness shall be as
suined by the citv, wheni it was incorpor-
ated; it also provides that that the city
council shall have power to issue bonds
to pay off indebtedness of the city, pro-
Yided that Indebtedness does not at any
time exceed SIS, 900, unless authorized
by a two-thirds vote OF the electors of
the city. As matter of fact the city in
debtedness exceeds $3O,OOO-will it be
necessary to call an election to refund
these bonds, providing the city may
legally pay its share? And there is still
another complication-the general law
relative to township Indebtedness pro-
yides that a township may issue bonds
for the purposes only of aiding railroads
andimprovingit highways and bridges.
1t is question whetherit has the power
to refund at all u1der this law.
These are all very pertinent points just
now, and some solution OF the difficulties
will have to be devised soon. Special
legislation is impossible. for constitu-
tional amendment was carried at the
last election prohibiting the legislature
from passing any special law OF this
character.
All the suggestion the Herald has to
make in this connection is that the
town and city authorities enter upon
such solution very wisely and advisedly,
weighing all the equities carefully and
impartially, each having due regard to
the rights and claims OF the other, and
above all that no passion or prejudice BE
permitted to enter into the negotia-
tions. The credit of the community is
ample and the disposition to be fair un-
doubtedly exists on both sides. To har-
monte tile technical points should be the
sole issue.