The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-02-14

Il may be a negative sort OF consolation
% the taxpayers OF Seattle 70 know that
this r. not the only city which has been
drawn by an excess OF enterprise into
financial difficulty. Laporte. Ind. thought
& needed a fire alarm system and con
tracted for Il al time when the city was
already indebted up to the constitutional
limit To was not done reckiessly. for il
seems that the contract vas made pay
able at "A tine in the future when it was
expected b the authorities to have SUI
neient money Ia the treasury to meet the
obligation. and. In fact. had the money
ready at the time Nevertheless, the su-
prene court OF Indiana has decided that
the contract Of Indebtedness was a viola
tion Of the constitutional provision.
Some OF the points passed upon are OF
Interest TO the people OF this city. The
most important az this moment is the
courts opinion with reference to tax GER
tificates or warrants drawn against un-
paid taxes. Referring TO this, the court
says that under constitutional provisions
substantially the same as those OF IndI-
ara. municipality which has reached its
limit may anticipate the collection OF the
revenue appropriated TO its use by draw
Ing warrants against taxes levied bait not
collected. thus substantially appvopriaung
and assigning the amount .drawa TO the
hosder OF the warrant The charter OF
the city OF Seattle specifically permits the
borrowing OF money On this security. bat
II would. under this deslsIon. seem TO be
recognized that warrants may be drawn
Upon the Tax collection" fund But.
says the Indiana court. In order 10 escape
tho constitutional Inhibition. the warrant
must he upon that fund only. and the
holder must look only to tho collections
from that levy for its redemption.
1t would seem that IN the Indiana case
the contractors cannot collect their claim.
for the court goes on 20 say that IL Is the
duty OF persons dealing with public officers
10 take notice OF their official and ju-
dicial character. and that they can onsy
bind the pabitc corporation they represent
ia the manner and 20 the extent author
ICED by law This is not new law, OF
course. ard II has been the contention OF
the corporation counsel OF this city IN
suits FOR thu payment OF warrants upon
funds whose creation vas invalid by a
failure Of oalcia.s 10 act in the manner
and within the limits prescribed BY Law.
Good as these provisions are. however,
Il is never wise. never good public policy.
20 seek TO rupudiate debts created IN
good faith ard where there Is no
evidence q fraud Q: OF extravagance
IN the terms q tia contract Men
who deal With Equuaclpal corporations
ouI5 be as careful IN entering into
contracts aad giving credit as they
svss-aa "a dealing with indivi6uls. In
the latter case creditors sometimes
make mistakes and give greater credit
than "a profitable sA8 suffer IN conse-
Guouce. Bat tie honor ans credit or "a
muuicipaf oorporatteE Is a more delicate
thing than that % 50 individual. because
81 mover goes out Of business ard It's s,so-
cess depends very much upon maintaining
that honor asd credit While. therefore
there Is en- Obligation or the part OF the
/ contractor 30 10 careful. the municipal
corporation should bs 10 less Jealous OF
its Integrity