The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-12-06
WARRANTS ARE VOID
TACOMA HELD NOT RESPONSIBLE
FOR BoGGg TRANSACTION
Judge staIIcap Declares . Million
Dollars In Claims Against the
Banks I'm which Boxxs Took
Refuge We're Guilty Of COLLATION.
Tacoma Bureau Of ne Post-TreeEigsncer,
1l1s Pacific Avenue.

Tacoma Bu-ezr Of ne Posr-TuteEigencer.
liz Pacific Avenue.
TACOMA Dec 6.-Spec2 aL-TacorA
eaunox find ne million dosls-z' worth Of
general fund outsrznc-ng warrants. Judge
John c SeaIIcup 50 decided today "a the
sn1ss brought BY q. F. hurry, a taxpayer.
against the city. restraining the antnorz-
.ses from proceeding with funding Of the
warrants ard issuance and esle Of bonds.
TIE lnJunc.aoa prayed fer Is made perma-
merit
Two very important facts are decided IN
ne eusn.on % TIE court Ons II that
Treasurer Boggs violated the law IN par
cnag-ng or cashsng the warrants "a Trey
were sszze6, and, after incors.ng them as
mot paid for want OF funds" 6epossEing
gneus II banks, or IN other words. reissu-
.yx them. The cours plainly says oAaI such
ac.s Of BoogS were Legal and not osno-as
or ne CITY Il Therefore follows that the
CITY Is % 10 way Liable FOR the warrants re-
sssue6, ard II support OF this contention
the court quotes several authorities
The other important feature Of the de-
ess.on bears on the right OF a municipal
government 70 issue bonds without the
consent OF the people. The court ho1ds
,nat following the DECISION OF the supreme
court n Hunt VS.. Fawceti. the city cannot
issue bonds except on a vote or the people
at a SPECIAL election, as the constitutional
Aff34f EaA1 AT&A4y Dcel SAIlAaSNSA " WV
Standing bonds.
In the opinion 4, r. declared that the
evidence introduced proved eonclusIvely
that during Boggs' term the city was Wen
provided wita money and that the re-
ceipts from taxes, etc. exceeaed the e&-
penditureg. The presence or large sums
OF money IN the general fund was proven
by the evidence. The court mere Ao4as
that the use or traffic IN warrants py
Boggs in connection with the money can
NOT const Irute a liability for which the
city would be either morally or legally re-
sponslble In addition to the money That
poured into the city treasury during me
painy days OF Boggs' administration, the
court points out thai the city received
$4,000 from the water extension fund,
wasch was also absorbed in the warrant
transactions. Therefore, the city. being
amply proviaed with money TO pay debts
and expenses as they were incurred. no
act OF Boggs in traffick.ng with the war
rants could create liability against the
city. Further. the court holds that the
city Is no more responsible for these war
rants than IL Boggs had actually forged
warrants and sold them outright
Referring to the right of the city to
increase It's bonded debt. the court says
that the maximum constitutional limit or
all debts created. with or without the as
sent OF the people, for all purposes, Is
but 10 per cent. Of the assessed valuation
OF property taxable. The city has already
a debt OF s. $50. 900. and the assessed VAL
uation is bat little over S26,ocoo0o. Con-
sequently the city Is barred from assum-
ing further debt Of any kind.
The court charactertzes Boggs trans
actions as Illicit and fraudulent. and says
collision with certain bankers and banks
now insolvent Is plainly shown in the evil
dence. IL Is proven, the opinion says, that
the banks in which Boggs deposited the
warrants closed UP with very little, II any,
assets, and the city has received prac-
ticaiiy nothing from the warrants de-
posted. II is also proven that Boggs was
short in his accounts. and covered up that
fact by his warrant transactions.
For these acts the court holds that the
city is In no way responsible.
Considering the importance OF the case
10 the city and the fact that municipal
finances are IN a badly mixed condition,
the decision ~ most important. The IAN
guage used as TO Boggs and his warrant
deal Is sensational in character. and the
decision has created a profound impress
sion. II has long been believed that Boggs
was short during much OF his last term.
but never before has the court proclaimed
the fact
There are forty SUITS now pending
against Boggs' bandsmen. many of whom
are no longer financially responsible.