Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-01-09

law. either constitutional or Otherwise,
is invaded by I'm enactment of tn ! gis-
lnture granting to a city which is II po-
lticnl subdivision of such state, ana to
whom the state by other enactmcuts has
granted a portion Of it, own SOW
and hold its own bonds in
like manner ns the state purchases
and holds Its bonds? The def 'nlant
undertakes 10 draw a distinction between
the two eases. but have been unable
to see any difference. In both case II
is q corporation TOR the state, In dealing
in finances, is political coporatonl taxi
ing funds, by it, therefore rai q by
taxes for specified purpose, aud III re.
fore pledged 10 that purpose, aud wit tue
same purchasing at their market value
Its own bonds and placing the same IN
its treasury wlh the intent 10 hOid snld
bonds us an Investment upon which ~ nov
itself for the use and benefit of the
purpose for which the money witch pur-
chased the bonds was raised, the interest
upon and the principal of such bonds so
purchased, so far as the same may be
necessary for the purpose Tor which SAID
taxation was had. By general avn re-
visc1 statues, article 9Sil. subdivision
3, the legislature has specially granted to
all counties in the state the authority to
invest sinking funds raised for die re-
dcmption of bonds and by article 9SOg
il Il provided THAT all counties, incor-
puratel cities and towns IN this state
owing debts are hereby authorized to
fund the same In bonds of said counties,
cities or towns In such sums and at such
ratio of interest az may be deemed best
by the authorities Of such counties, cldc8
or towns II Ia, however provided IN
this latter article: That this act shall
not apply to. any Indebtedness of said
counties. cities or towns made or under
g. NJ. lao a.
and therefore is not quoted as authority
authorizing the Cty In this instance to
invest In MS own bonds, but 10 show thai
The right to grant such authority has
been repeatedly recognized and acted
upon by our legislature. Aud further. Il
h we'll known that the congress of the
United States whose powers are limited,
and who represent, In legislative capnc'
ity, only quasi sovereignty, has re-
pcutCd.y passed acts directing the invest
mcul Of funds held In It's treasury for
specific purposes, In bonds Of the United
States. to be held in its treasury as
valid, living oblga lions, upon which the
principal and iniernst Is payable 10y itself
10 itself for the benefit Of said special
purpose; and that such acts have been
pissed upon by the supreme court of the
United States, with other questions In
yoved in litigation, but In no ease, so
far as known 10 me, has the right Of con-
grcss t1 order such Investment been qss-
TONED Counsel for defendant have re-
fcrred the court tn tho case of the bank
for savings in the city vt Now York.
and others, versus Grace Mayor, l02
n Y, page 3l3. wherein Il Is held thai
certain city stock of the city Of New
York. bought with a certain slullug fund.
ceased 10 be an Indebtedness Of the city
within the meaning of mo constitutional
provision, which prohibits a city of over
lOnOAD inhabitants and whose present in.
debtelncss exceeds 10 per cent of the
assossol valuation Of ts real estate taxa
lion. from becoming indebted TO o fur
thor extent An examination Of snid an,
thor.ty shows that said decision turned
npon Che construction OF q 4iainie Of
New York which authorized such inyeS {
meni' which san COURT constructs am!
MINK pronerly' py us terms, TO provide
lhnt me lnNestlnent theIguy auteor1ed
OF snch sinking iund should be, IN taci,
IvHrl,lpt,Oh a w uulus, ~ lar Us ue
pr-nvippl ngn' nnglelu WIS g31nVe =, ~,
KY Suo9'e &c an ,s''s w "l'y 70 .e
~ , ~ ,,,g, ~ WIN sJel.i,,,, III, NJ
antboyty 0i IN NO wise eonllcps MIN hnt he