The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-07-26
THE CITY'S FINANCES.
PLAN TO ACCEPT WARRANTS IN
PAYMENT OF LICENSES.
The Council VIII Probably Recede
From Its Action-That Thirteen
Thousand Deposited in the, Bank
of Salt Lake.

CITY Attorney Mckay will knock out
the proposition of the city council to
have the treasurer receive warrants
in payment of licenses and other debts.
The action. aside from it's bad results
otherwise, is claimed to be clearly ille-
gal and the attorney will so tell the
council next Tuesday night The power
to do such an act is only within the
jurisdiction of the legislature. The
constitution of the state is silent ON
the point and hence, in speaking of
taxes and licenses, recognizes nothing
but money.
But there is another side to the case.
When the city bonded it's indebtedness
1t entered into contracts which cannot
be impaired. The interest on this in
debtednesS now amounts to something
like $4,000 per year, and according
to the contracts, which are irrevccable,
this must be met whenever due If the
city should take its own paper in lieu
of cash, it is plain that with all this
outstanding Indebtedness there would
not be sufficient money coming into the
treasury to meet the interest; hence
the legislature even could not under the
present condition of affairs, pass a
law making warrants receivable for
debt to such an extent that the exist
ing contracts would in any way be i'm
paired for they are protected by the
constitution of the country.
And in this connection attention may
be called to the manner in which the
city council, and the treasurer includ
ed, does business. Every contract be-
tween the city and the bondholders
provides as follows: For the purpose
of providing for the payment of the
interest on said bonds, as the same
shall become due, the sum of (here the
amount of tine interest due annually is
given OF as much thereof as may be
necessary, is hereby appropriated an
nually."
Now, according to the above provis-
ion, the duty of the treasurer is to set
aside the amount of the interest with
out even asking the city council for in
structions. But what does the council
do? 1t makes an appropriation when
ever the interest becomes due and in
stead of complying with the law pro-
viding that the money be set aside, uses
it. and If short when the time comes
to raise the money, as was the case
recently borroWST enough to make up
the difference. Taking all these facts
into consideration common sense would
dictate to a man the foolishness of such
an act as the council perpetrated when
they passed the resolution making
warrants receivable for licenses, fines
and all other debts.
The council has now realized the folly
of it's act, as evidenced from the reso-
luton to rescind the former action
and provide for the issuance of time
checks. AS far as can be ascertained
Treasurer May has received about
81 500 in warrants in this way He only
received them for few days, for he
was prohibited by his bondsmen from
doing it, and of course he had to obey,
especially when the city attorney also
pointed out the illegality of the coun-
ellis work. Just what the council will
do in the matter next Tuesday night
none can foreshadow, but they will
do something to make up
for their blunder
Relative to the matter of recovering
the $4,000 which was deposited in Ba-
cons bank, nothing of any special inn
portance was done yesterday. The city
attorney has notified the sureties that
they must make good the amount and
no difficulty in recovering it is antici-
pated. So far neither Mr.. Dooly or
Mr.. Mccormick have replied to the at
torney's demands, but from the feeling
which seems to prevail among the in
terested officials the money will be
handed over without any trouble.
City Treasurer May was in consulta-
ton with the city attorney a good por-
tim off Yesterday.