The record-union., 1895-01-26

submitted and who must authorize the
creation OF the liability by two-thirds
vote.
Ihe charter is very strict on this point,
SAYING mat no liability shall be created
against fund unless there is money
there to meet it. 1t makes the Trustees
personally liable who vote to create such
liapiilty, and it would seem that you
would also be liable should you approve
such contract. In the making of con-
tracts where more than Sl00 is to be ex
pended, you act in conjunction with the
trustees and probably would be held TO
The same accountability. This point,
however, as to your personal liability, l
90 not assert as a clear proposition, but
make 1t as suggestion merely. 1 think
your attention should be called to it, how
ever The charter is plain as to the re-
sponslbliity of the Trustees SO voting.
The State Constitution contains the
same restrictions in Section Is of Article
XI.
The question here under consideration
has been before the Supreme Court and
has uniformly received the same con-
Structlon. For instance, in Schwartz VS..
Wilson, 70 CAL 502, the Supreme Court
held:
Under Section IS of Article X of the
Constitution and Section 80 of the County
Government Act, a county Indebtedness
incurred during given fiscal year CAN
i4OC Oe pdlC OuG Ol Ln0 income or revenue
OF any future fiscal year"
In the case of San Francisco Gas Com
pany VS.. Brickwedel, 62 Cal. 64I the Su-
preme Court of this State. per Justice
Ross, said:
1--WE think it is clear that when the
trainers OF the present Constitution said,
as they did by Section Is OF Article XI. OF
that instrument, that no county, city,
town, township, Board Of Education, or
school district shall incur any indebted
ness or liability, in any manner or for
any purpose, exceeding in any year the
income and revenue provided for it for
such year, without the assent of two
thirds OF the qualified electors thereof,
voting at an election TO be held for that
purpose ETC., they meant that no such
Indebtedness or liability should be in
Cured except in the manner stately ex-
ceedIng III any year the income and rev.
enue actually received by such county,
city, town, township, Board of Educa-
tlOn or school district. In other words,
that each years income and revenue
must pay each years Indebtedness and
liability, and that no Indebtedness or liza
blllty incurred in any one year shall be
paid out Of the income or revenue of any
1uture year. The system previously pre-
valllng in some of the municipalities of
the State, by which liabilities and in
debtedness were incurred by them far in
excess of their income and revenue for
the year in which the same were con-
tracted, thus creating floating indebted
ness which had TO be paid out OF the income
and revenue OF future years, and which
III turn necessltated the carrying forward
OF other Indebtedness, was a fruitful
source OF municipal extravaganza. The
evil consequences OF that system had
been felt by the people at home and wit
messed elsewhere. 1t was to put q stop 20
all that that the constitutional provision
H. I IL,
was emlnently wise, 4 somewhat SINH
lar provision in the old Constitution with
respect to State Indebtedness saved the
people OF the State a vast amount OF
money. People VS.. Johnson, Cal. 5O3;
Nougues VS.. douglass, id. TO.
Nv have neither the right nor the dis
position, by judicial Interpretation, to
take away the wholesome restriction
upon municipalities thus imposed by the
Constitution. OF course, in giving effect
to this radical change from the pre-exist-
ing condition OF things, it will not be
strange if some shall be found to suffer.
But 1t must be remem bered that all are
presumed TO know the law, and that who
ever deals with municipality is bound
to know the extent Of its powers. Those
who contract with it, or furnish it sup
plies, do so with reference to the law and
must see that limit is not exceeded.
With proper care on their part and on
nlclpailty there is no danger Of lossn
1t was held in Shaw VS.. Statler a Cal
25S that: Under Section Is of Article Y |,
OF the Constitution, the income and reve-
nue. provided for county during a given
fiscal year must be applied to the pay
ment OF the county Indebtedness incurred
during such year, before the payment of
any Indebtedness incurred during pre-
ceding year can be made therefrom."
1t is very clear, therefore, that a liabil-
ity cannot be created against the city of
Sacramento beyond the amount OF money
on hand in the fund against which the
liability is sought to be created unless
authority is conferred by two-thirds
vote at an election. There are many
more questions involved in this inquiry
as TO now far there is a conflict between
the provisions of the charter authorizing
the creation OF all Indebtedness and those
OF the Constitution requiring each years
revenue TO be devoted 10 the expenses of
that year unless a bonded Indebtedness
is created. But in view OF the language
Of the charter itself it is necessary to
enter into an examination of this Ques-
ton. The charter itself disposes Of the
proposition, as Its language is plain and
susceptible of but one form OF construc-
ton. Respectfully submitted,
ROBERT I. DEVIIN,
Corporation Counsel.
TNCPEa THE ATEp