St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-08-09
RESERVOIR BONDS.
LEGALITY OF THE INJUNCTION
ARGUED BEFORE THE FULL
BENCH.
THE PETITIONERS INNINGS.
THEY CLAIM THE LIMIT OF IN
DEFICIENCIES HAS BEEN
REACHED.
THE REAL QUESTION Is
Largely the City,s Liability on
Court House Bonds,
THE PETITIONERS INNINGS.
He REAL QUESTION Is
Largely the City,s Liability on
Court House Bonds,

Yesterday was the day set for hear
ing arguments in the reservoir bond
injunction. The case had been
called for o'clock, but the anxiety
of all parties to have the full bench
present necessitated a postponement
until 2:30 o'clock
The case is one of great import
ance to the city, as an adverse de-
cision would involve the reservoir
project in countless difficulties.
Some 500 workmen would be thrown
out of employment and a great pub
lie Improvement would be indefinite
~ delayed.
The case is technically known as
Anthony Kelly, FendaH G. Winston,
Clarkson Lindley, George McAllister,
j. H. Thompson and Jonas F. Brown
VS.. The City of Minneapolis and City
Treasurer A. c. Haugan. The in
junction is desired to prevent the
board of sinking fund commissioners
from purchasing the recent $500, coo
bond issue, which, it is alleged, will
increase the indebtedness of the city
beyond the 5 per cent limit, in di-
rect violation of the charters ex-
press provisions.
The city was represented by City
Attorney Simpson and Judge NJ. B.
koon, and the petitioners by Judge
P. NJ. Babcock and ]. B. Atwater.
The case was opened by Judge Bah
cock, who read the papers that had
been filed when the temporary in
junction was allowed by Judge Bel
den. Mr.. Babcock then ATTEMPTED
to read an affidavit by William H.
Thompson relative to the assessed
valuation of the city.
Mr.. Simpson objected to the read
ing of the affidavit on the ground
that it had been made subsequent to
the filing of the answer and con-
tanned allegations not contained in
the complaint. The objection was
sustained and the reading OF the an
swer was called for.
JUDGE BABCOCK'S ARGUMENT.
His statements of facts were as fol-
lows:
THE assessed valuation of the tax
lis, as shown by the report of the CITY
comptroller Dec 81, 1894, was S134. 47s,-
5f2. Five per cent of the valuation is
So, l23, S28. The total amount of bonds
issued by the city and now outstana-
ing and unpaid, including sos, 600 held
by the sinking fund commissioners
and exclusive of the 500, COO reservoir
fund, is S7,465, 900. The total arnounr
OF park certificates issued by the park
+ commissioners still outstanding AND
unpaid is S747, SIT. OF the proceeds OF
the last million dollars in bonds is
sued by the court house and city han
commissioners, know as county series.
S250,OO0 has been expended by the cons
missioners in the construction of the
city hall part of the building. Thus
making the total amount of indebted
ness stated thus:
Bonds issued and unpaid 81, 465, 600 co
Park certifica ties .. IA S47 u
Due county Tor money spent
vi city haLl '............... 10000 90
Total ...... ,..............SS,4 62, SIT q
The amount belonging to the sink
ing fund is invested as follows:
Invested in city bends, sos. 900: tenn.
porary loans, S252, 574.66; cash with
treasurer, S4S, 72611; total, 81. GO6. 800. n
the reservoir, executed bonds to the
amount Of 100000. Being unable tc
otherwise dispose of the same the citv
council entered into negotiation with
the sinking fund commissioners 10 pur-
chase such bonds
Legal questions arising from the
above questions of facts:
Ffrst-Can plaintiffs as taxpayers
maintain this action?
The right of taxpayers to maintain
an injunction against the unlawful use
OF money belonging to the city is not
only recognized by the authorities. hut
the city charter expressly recognizes
such right. In support OF his position
Mr. Babcock quoted from half a dozen
authorities TO show that this was an
almost automatic truth. Continuing. ne
says:
1T has ever been the policy of the
law 10 throw around the citizen its
shleld and protection aginst the I'M
lawful acts of municipal officers and to
curb the encroachment Of the acts
done under the guise of official author
lty and to require of municipal corno-
ration strict observance of their DOW
ers. The sinking fund commissioners
are but the agents of the city. and no
! agent or authority is clothed in any an
thorlty whatever except as contained in
the law under which he holds his Of
nee and governs his acts, and when
ever the law specifies the manner in
winch a municipal officer shall per
form his duties he can perform them
! IN no other way or manner, and any de-
walton from the path pointed out by
the law renders his acts absolutely
void.