The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-03-07

no debt whatever. In either case the
Indebtedness of the current year, cannot
exceed the revenue of the year. while
the act of congress referred to fixes the
amount to which in the aggregate the
county may become indebted by reference
10 the two preceding ears, stno tae
the amount.
1t appears from the answer that the
territory on the 31st day of December.
1885. had a floating debt outstanding,
evidenced by interest bearing warrants,
the principle of which amounted to
$439, 205. Is. It is common knowledge that
many of the persons who secured such
warrants for services performed. or
other consideration rendered or given,
Were compelled TO stand enormous shaves
in order to get the cash. When it be-
comes necessary to hawk the warrants of
the county about the town in order to
realize upon them. persons to whom they
are issued get less than they contract for,
and the county looses its financial stand
ing. and is often required TO pay more
than 1t would If prompt payment could
be relied upon Besides a bonded indebt-
ednesS can always be obtained at lower
rate of interest than a more temporary
credited warrants To remedy the above
abuses and evils that had grown up
under the territorial system the section
of the constitution under consideration
was adopted prohibiting any Indebtedness
which cannot be paid by the revenue of
the current year. Such is our interpreta-
ton of the provision in question. and it is
Smith VS.. Broderick, 107 Cal GA
Book VS.. Earl 81 Mo 24S.
Weaver VS.. San Francisco, III Cal. 3l9.
Appeal of the city of Erie, 81 Pa SeS-
NO CLASS OF EXPENDITURES Elk
EMPT.
1t is also urged that only Indebtedness
arising from voluntary contracts should
be included in determining when the
limit is reached. The Indebtedness for
salaries and liabilities for the negligence
OF the officers or agents of the county
for which it may be liable should not be
included. The language of the constitu-
of the taxes for the current year shall
be created" That language includes all
debts where the proposition to create has
not been submitted to the electors. The
number of officers of the county and
their salaries, are largely within the dis
erection of the county board. The COM
missioners by the exercise of reasonable
foresight and discretion can avoid any
lack OF revenue for the payment of salar-
les or fees, or the payment of damages in
consequence of torts, by taking such
salaries and fees into consideration in
estimating the amount of the tax levy,
and by making a reasonable estimate for
extraordinary demands for torts. They
have the means of ascertaining when
making their estimate and assessment of
taxes for the year, the precise expendi-
lures of the preceding years, and with
the exercise of reasonable foresight,
caution and care, they can make an as
sessment sufficient to meet all just de-
mands for the year.
The case of Rollens VS.. Lake county.
"a Fed. Reporter, S45. is relied upon This
case afterwards came before the supreme
court of the United States upon writ
of error, and by that court, the decision
relied upon was reversed. In that case
a large number of warrants constituted
the cause of action, and the contention
was as to a constitutional provision of
the state fixing the debt limit of county
Indebtedness, and as to what indebtedness
he in "a rT00fT nj WI her
ii had been reached. In its decision the
supreme court said: Neither can We
assent to the exposition of the court be-
low that there is as to this case, diff
ference between Indebtedness incurred by
contracts of the county. and that form
of debt denominated compulsory obliga-
tons The compulsion was imposed by
the legislature of the state. even IL it
can be said correctly that the compulsion
was to incur debit and the legislature
could not more impose it than the county
could voluntarily assume 1t, as against
the disability of a constitutional prohibit
ton. Nor does the fact that the con-
stitution provided for certain county Off
GERS, and authorized the legislature to
fix their compensation and that of other
officers, affect the question. There is no
necessary inability to give both of the
provisions their exact and literal fulfill
ment."
Lake county VS.. Rollins. 100 U. S. 662.
We are of the opinion that the limita-
ton embraced in the third section of the
CURED by operation of law as well as
those arising from express contracts.
The defendants insist that the term
tax used in the constitutional limitation
under consideration means simply the
revenue arising from the tax levy; that 1t
does not include revenue arising from
licenses and other sources Licenses to
keep saloons or dram shops are issued
under the police power. While licenses
to conduct some other classes of business
do not need police regulation Such
If,a fc civ 1ralx- Of
obtaining revenue. But whether granted
under the police power or the taxing
power. the sums paid for them ere a
source of revenue, and in effect constitute
a tax on the particular business. Again
it appears from the answer that the
revenue of the county for the year 1886.
from sources other than the tax levy.
including $40,244.64, in the treasury on
January LIST of that year, amounted 10
$91. 1854.
we cannot assume that the authors of
the constitution intended that this large
sum should remain in the treasury from
year to year, and that the revenue from
the same source should continue likewise
to accumulate. We cannot impute to the
authors of the constitution such an I'M
reasonable intent. We hold that the
county was authorized to appropriate the
revenue from the tax levy and that from
other sources as well. to the payment of
the legitimate liabilities of the year.
PRESUMED TO KNOW THE LAW.
The plaintiff also claims that the law
will not permit the defendants to deny
the legality of his warrants because they
were issued by the county auditor, and
certified by him to be within the debt
limit.
Inc authority and duties of the auditor
were defined by public law. and the debt
limit was fixed by the constitution. Per-
sons dealing with the county or receiving |
its warrants, must be presumed to know
the law. and by inquiry they can ascer-
tain the amount of the Liabilities incurred
and expenditures made
County warrants or county bonds issued |
without authority of law are not valid
in the hands of the person to whom |
them cannot. in a legal sense. be innocent |
holders. All persons receive them at
their peril.
The Mayor VS.. Ray. 10 Wall. 4ss
Clark VS. the city of Des Moines. IS
Iowa, 200.
is evidenced by warrants. and they are |
valid as against the revenue of 1896.
We are unable to determine from the |
facts stated in the answer. whether all |
the revenue of 1896 has been a-.4lied to |
the payment of the liabilities of that |
issued than there was revenue to pay, |
furnishes no excuse for not paying as /
far as L will go. Payment should be |
made to the limit, and the limit is the |
shall arise from the collection of taxes |
levied in 1856 it shall be applied TO the |
payment of that years Indebtedness as |
far as L VIII go. and If any of such |
revenue remains after all the indebted |
ness of that year shall have been paid. |
of the revenue of 1896 has or shall be
paid on the Indebtedness incurred in 1897 |
an equal amount of its revenue. If re- /
quired. should be applied to the indebted |