St. Paul daily globe., 1895-11-18
ANOTHER PIONEER PRESS BLUM
DER,


to construct an electric lighting plant,
and also to purchase the plant of the
st. Paul Gas Light company. The
authority for this statement is said
to be chapter 2OS of the General Laws
of 1898, which is printed as a part
of one of the editorial articles re-
ferred to. These statements are
made, and the people of st. Paul are
urged to consider the question prac-
tically with reference to possible ac-
ton thereon, although the act of
1885, as printed by the Pioneer Press
itself, concludes with these words:
Provided further, that nothing in this
act prescribed shall authorize the in
crease of the total bonded indebted
ness of any such city beyond a limit
of five per cent of the assessed valua-
ton of such city.
The bonded debt Of St. Paul is al
ready in excess of the per cent
limit. There is nothing in the act
quoted which would authorize the
exclusion Of the water bonds from
the list. The tax levy certificates
are, as every one comedies, a part of
the city debt. Not only, therefore,
does the act quoted not give author
ity for the issue of one dollar of
bonds for the construction or pur-
oI,a Of Of ,11o Io +
but it expressly forbids it. If a city
has no debt, it may, under this act,
issue bonds to the limit of per cent
of it's assessed valuation. If it has a
bonded debt less than that in amount,
it may issue enough more bonds to
bring the total up to the per cent
limit. But when it has reached
that point, it is expressly prohibited
from incurring additional indebted
ness. In view of these limitations,
set forth in plain English in the
law which is the subject Of the
Pioneer Press comment, its assertion
that this law gives the city of st.
Paul ample authority to issue bonds
for the purchase or erection of light
ing plants, gas or electric, or both,
to the extent of Sc, $50, ,0O0," is an error
even less comprehensive than the as
sertion that a community may bor-
row for current expenses money
equal to it's entire anticipated rev.
enue for a year ahead, and still not
be in debt to anybody.
If the Pioneer Press had not print
ed the text of the law on which it
relies, and thereby committed itself
beyond possibility of correction, we
might think that there was in it's
mind some confused glimmering of
a recollection of another law Of 1893,
which is chapter 204, and which re-
lates to the same subject. This act
prescribes a method by which bonds
may be issued, without legislative
authorization, by any city which has
formally accepted the provisions of
the act, of four specified descriptions;
permanent improvement bonds,
bridge bonds, water and light bonds,
and general fund bonds. The second
section Of this act is similar to chap
ter 2OS, quoted by the Pioneer Press,
but with the additional provision
that when a city has reserved the
right to purchase water works owned
by a private company, bonds issued
for that purpose are exempt from the
per cent limit. If we remember
correctly, this act was intended to
apply to Duluth particularly, and to
avoid the prohibition of special
legislation. Section 8, however, bears
directly upon the point in question.
In this section it is prescribed that
an additional per cent on assessed
valuation in bonds may be issued,
making the total bonded debt not
more than 10 per cent of the same.
These bonds can be issued for any or
all of the purposes enumerated, pro-
vided they shall have first been au-
thorized by a two-thirds vote of all
the legal voters of a city present
and voting at general or
special municipal election. 1t is
necessary, before this act can
become operative, that an or
dinance adopting it be passed by a
| three-fourths vote of all the men,
bers-elect of the city council, and a
| copy Of the same filed with the Sec
| retary Of state; and thereafter that
| it shall be adopted by a two-thirds
vote of the people at the polls. The
purpose of the act was to enable some
of the smaller cities to make neces-
sary public improvements, without
violating the amendment to the con-
stitution prohibiting special legisla-
ton. 1t is the only act among our
statutes which, as far as we are
aware, can have any possible appli-
cation to the matter under consider
alton.
AS to the practical advisability of
attempting to apply this act to st.
Paul, there is certainly room for
grave doubt. The expansion Of our
bonded Indebtedness to 10 per cent
of the valuation, or to any sum be-
| Uond its nreSant u ooprrarota will pot
be sanctioned by our people, who are
thinking Of reducing rather than in