The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-09-18
TACOMA CANNOT PAY.
Patriotic Citizens Who Lent
the City Money.
That sAs CITY uannos Pay Any Interest
Oue II ths Tax Lev1eo -
This YooD.

Tsc1rsa ss a Sfrit@s nos1s@ On on. zs1e
are Mayor Fagceet and Ioaa 2 J14SoI.
hLs cE41s Legal sdvszor. and % the otaeg
srs the city council CosnpEro.ler DenaaTn
and Treasurer Stern berg Yasser3a ~
Mayor Fawsest declined 10 Align warrant
Drawn sor 3. 80 OF me interest fund. me
money being intens3~d for tne repay II mt
Of the citizens xao advanced the nsces-
sary fund. last winter and again on June
! 10 saa5se the city 20 meet ina interest
on sse water and ugat bonds. Mayor Fas-
cegG did not RE- 1ss % s.gn the warrant.
bat sac ne wished TO lcok into Tie matter
before he took any action what ne
mayor meant that he rad asked tns
CITY attorney. Mr.. J8dson, for AT opinion
on TIE proposition. sn1 did not wish 10
sign the warrant I'll he mad 5een ADVISED
to the matter.
This morning City Attorney Ia6so1
handed the mayor his opinion. In which To
says the cgty's executive woa- DO an Il
lega] act II he s4G1S1 tEs warrant Inc
result Is that tbe u.@n who generously
icane4 the cry money when IL needed L
mos. 1z.4 have 20 saL Indefinitely 70 :
their pay. or I'll the supreme court hans
down Ar opirl4oIl In he Orr a wcetZ con
test case ana In the sliI touching the Ie-
sA3sky OF the charter amendments.
City Attorney Ju4So1 sakeS -ae gronnd
tna[ Tire Cove Injunction which tied Up
the money ia the city ,-easary derlseA
from the current LAX isyT. Aid prev oated
It's 1lsoar sorneats for the salaries or ely
employees also operates against TIE iAsGr-
est p2yments IN other words. ne cry
attorney declares that as no special levy
was made 10 pay interest charges. ana as
under ord nance 20 a. motley fe-'ve1
frosl taxes must be ase1 for Zenezat H1-
IiclgaI purposes. therefore the city treas
urer 5 not authorized to use any par OF
tbs TAX levy for the payment OF interest.
bus mus, apply X all 70 the reaempa11 81
the outstanding warrants.
Tae AZ seRS 81 tAe current year was a.
yi4ed into three fan4s-the interest fund,
the salary fund and he general expense
fund There Nds 10 provision for the gen
praI furd. on which the Se09O3 warrants
outstanding are drawn When the city
council. by ordinance, directed the CRY
treasurer 10 pay out money on warrants
drawn on the salary and general expense
funds Royal A. Cove brought q suit a.
leglng that the cres Arg Of the special
funds was Illegal, ard that al money de-
rived from general taxation must De ap~
p0rtioned TO the general fund and applied
10 the redemption OF the outstanding war
rants Ia the order OF their Issue The 81
perior court granted al Injunction re-
straining the treasurer from complying
with the councils Instructions. and Il was
made permanent on the final hearing.
City Treasurer Sternberz ana City
Comptroller Benham have all along con-
tended that In the act OF the legislature al
thoTizing the purchase of the water works
the clause directing the council to levy
taxes annually Tor the payment Of the In
terest on the bonds was sufficient author
ity for the payment Of the interest as It
fell due. without reference 10 ordinances
or charter amendments. City Attorney
JadSon takes the opposite view when he
advises the mayor 10 refuse 10 sign the
warrants. which were intended to repay
the subscribing citizens. The opinion
Gays:
III the Cove Injunction was dissolved
we could not use the money derived from
the tax levy OF 1855 10 pay interest. IN
less authorized TO DO so by a vote of the
people. The ordinance making the tax
levy for is9j-8s leyies a tax OF IL mills
for general municipal purposes. No spe-
ciss levy was made 10 pay salaries or in
terest, hence II follows that this money
must be considered a. collected and ap-
rropriates for general municipal purposes,
and that as such II goes 10 the general
fund for the payment of general fund
warrants IN the order OF their date and
Issue.
Amendment WI 20 the charter pro-
vides that No fund shall be diverted from
the purpose FOR which II was originally as
without the proposition therefor is sub
United 70 a vote Of the people and author
ICED by a. least a majority vote az either
special or s general election This
amendment Is still in force and effect
There e no law which authorizes the
use OF this money 10 pay interest which
does not authorize It's use 70 pay the sal
aries due the city's employees. The bond
holder has no more rights thsn the COM
mon lab0reran5 theeTgrs maaeFo4gnore the
ia~ and order OF the court 20 pay the in
terest 10 the bondholder and yet 70 cite
that lsw and the order az the court as a
Justification for not paying the common
aacorer. - not credItable TO Me officers az
the city. The law operates equally upon
to rich and the poor. she laborer and the
bondholder, and * must he 50 construed
and enforced. Jntil further action on the
part OF the bondnol3ers and the people
you arc not authorized 10 sign any war
rant 20 pay interest ont of the money de-
rived from the tax levy OF 1858
~ the cts hsN there IS considerable
question among fhe officials ga 20 the
scunaness 81 The city attorneys doctrine
"Aen tie Cove Injunction was made per-
- tnent "a effort was made by- the council
ic fund the warrants 80 as 10 allow the
cfty - Use It's current revenues under the
Mslroy act These efforts have been
blocked by ths mayer and city attorney
II N4s fsaflEf-4 iHat ne question Wo4il
some time arise IS % gAe power % the
ct3y treasurer 10 ray out the money &C.
rived from tse carrent tax levy. in View
= ne dee sion Of tie court ia &he Cove
aasa. As she matter Daw stands, che 1ity
- unable 20 pay oHt Gent n It's c8rren.
rev@nuSs far anything except the rer5en0p-
tian % warrants Unless tha situation ts
relieved % ofoe manner. Il ~ a problem
aew she ely viii avert delaslt IN the mex;
'atersst payment, Which fails de octo-
beg !.