Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-04-16

edly have been controiliiS. p"e''"
In View OF thrsc historical facts. when
are within the memory OF ~. " III,
OF this plain language OF ~ 10
court IN America. 1t seems 10 the
assume that the local valuati1oi . - l, aIe
one by which to compute our W.. III
Taking this as a oasis, We M M az,
amount Of Indebtedness whi incp r." TO be
of Watervile can lawfully li icut, - ~ -.
S225, 53S, 20. According to me a1 oo ,Sa7 No
port for the year ending Jan. ~, ~ , NJ
city's bonded indebtedness ~ .has ..iii,
bearing notes amounting to Sal, $50. There
were coupons due and unpaid 10 Inc
| amount Of s2,55S making total OF szts,-
2oS or an excess of Indebtedness Eco o % 'e
amount allowed by law. OF siooo','v'
This condition of Affairs seems 70 naVe
come about through the careless Way -.
which Tor several years; ' NJ annnoI re-.
port The last one Is II I'M sa III ,a a',au
on looking at page 135, Wnere the SLIT
ment Is gwen, 1t seems tHi h ~ ' .nsn a.,
hand. tax titles, and uncolected taxes.
| are deducted from the totai dept Evils
what is called the debt less assets. mere
| exists no principle or reason "hiteFei,
| for making any such deductions. AS wen
might the city's wood lot III oidney: .he
aims house and contents. tne iot on sum
mer street, and all the other real ana
personal property belonging to the city,
| be added to the list, If such deductions
are to be made at all. The question TO be
considered is not as to .he o Guy VI, hG !,
worth, or net Indebtedness, OF What II
would have left, ii all or any part VI tS
property Were applied IN reducllon OF us
| indebtedness. II is well known TO an OF
you that the property annually eHuIef-
ated in this list OF assets is never applied
| in reduction of the citys DEBT nut stands
from year to year in the h'tnds OF the
various cuStodianS as any otnef city prop
erty.
! The only deductions TO be made from
the city's gross indebtedness are such
sums as come within the descr! ~ con
tanned in the constitution OF temporary
loans to be paid out of money raised py
taxation during the year IN wnlch they
are made. AS all or pfacticaliy an OF
the interest bearing notes "hich the CITY
owed the Both of January, are sun
outstanding. and some of them nave been
out for years, and were not discnarbei
during the municipal year IN Whlch they
were made it scarcely seems possible to
regard them as covered by the provisions
of the constitution Just referred to. me
view stated as to making deductions from
| the city's gross debt, occurred TO me as
soon as ] began investigating TINS subject
| but ! should have felt greater hesitation
| in stating il before you az TINS time had
| not found il supported by the supreme
courts OF at least four states whose con
stitution contain provisions substantla ~
similar to the one We are now conslder-
ing.
And in Doom VS. Cummins 142 United
States 500. the supreme court OF the
United States cites with approval state
ntnl tildI HiGOlleC1tu ldhtH anu wy ~ -
| for the current year, can not be deducted
from the outstanding debt. for the pur-
pose of ascertaining the real Indebtedness
and that the contrary view coniouhds
the distinction between an lndeDt -dflr>s
and insolvency.
The city then having reached It's debt
| limit its power to make further contracts
calling for the expenditure OF money be-
yond the taxes of the current year Is
positively ended. This limitation IS held
| by the supreme court Of the United States
| TO forbid implied as we'll as expressed in
debtedness and TO be binding upon courts
OF equity as well as Of law. Litchieid IS.
| Ballou, III I. 8. 100.
II therefore follows that a party per
| forming work for the city under a con-
tract prohibited by this provision of the
institution can neither recover upon
the contract nor can he recover as dam
ages the value of materials furnished or
work and labor performed. The constitu-
! ton. which foIbids the express contract.
will prevent the accomplishment of the
object by any indirect means.
Ii therefore follows that on the 29th Of
January. 1857 the city of Wdicryilie Itself
possessed To power to make contracts
| such rs are contemplated in the order ot
August !. and the City hall commission
being merely q tool or agent OF the city,
was of course limited accordingly. JUST
when the citys indebtedness reached the
| limit ! have not attempted to learn, rs
there seems TO be no question about the
validity of any contract before the 34th
of January. 1897. or the legality OF the
doings of the commission up TO that date.
My answer thus FAR has been upon the
assumption that the city's debt limit Is
already exceeded: assuming. however,
that | am mistaken as TO the figures ana
that We have a margin of about $4,000 4
is frequently stated. we still reach prac-
tically the same conclusion for the city
would then have a right 10 contract only
to that extent. and any contract for
larger sum would be Illegal and void.
In the view thus taken of the first Ques-
ton. there seems to be little necessity to
answer the other three questions pro
pounded by your honorable body, am
unless further requested so to do con
| 'ideratlon of them FOR the present viii he
omitted.
Respectfully submitted.
HARVEY d. EATON.
CITY Solicitor