The herald., 1897-05-25
A NICE POINT
Passed Upon by Supreme
..:.... Court
The SAN LUIS 0BlSP0 BONDS
GOLD COIN OR LAWFUL MONEY
- DEFINED
THE SAN LUIS oBlsPo BONDS
A Decision Declaring Bonds Invalid
Said to Also Affect an Issue at
iss,r, San Diego

The supreme court Of the state has
passed upon the case of P. w. Murphy,
plaintiff and appellant We. the City of
San Luis Obispo, wherein question of
importance In the issuance of bonds by
municipalities is decided.
The action was brought to enjoin the
defendants from selling or disposing of
certain bonds issued, but not yet sold
by the city of San Luis Obispo, and to
restrain defendants from levying the
taxes men ntioned in the complaint and
from enforcing certain ordinance Of the
said city.
The cause was tried and judgment
given for the defendants. The appeal
was from the judgment and from the
order denying new trial. The appel
liant presented three grounds of attack
upon the bonds: First, that the bonds
are made payable in gold coin of the
United States instead of -"gold coin or
lawful money of the United States"
second, that the question as to whether
the interest on the bonds would be pay
able annually or semi-annually was not
submitted to the voters; third, that the
votere voting for the bonds voted by
stamping across opposite the PROPOSE
tions submitted to them instead of indi-
eating their wish in writing yes" or
mo-
by the act of March 1st, 1893" saye
the court, 'it is required that the bonds
and interest shall be payable in gold
coin or lawful money of the United
States The ordinance provided that
both principal and interest shall be pay
able in gold coin of the United States;'
and the notice of election was in that
form. The argument is that because the
previous statues authorizing the issu-
ance of bonds were silent as to the kind
of money in which the bonds might be
made payable, and there was no restric-
tion in thie regard, therefore the amend
ment Introducing restriction was in
tended to limit the power and to compel
the proper authorities to insert the pre-
else language of the statute, and all of
1t, and, not having done SO, the bonds
were void.
''The respondent replies that the in
tention of the statute was to leave with
the municipality the option of making
the bonds payable in either gold coin
~ AA a. ui iiiCicy VI lllt VI Sld les.
In the case of Skinner vs. City of
Santa Rosa. the ordinance calling
special election to vote upon the bonds,
described them as serials payable in
gold coin or lawful money Of the United
States following the language of the
statute. The notice of the election
contained the same description of the
bonds proposed to be. issued. After the
election, at which the vote was favor
able to the issue, bonds were prepared
In conformity to all the particulars
stated in the notice. Steps were taken
TO cell the bonds, but, failing 10 find
purchaser in their then form, the city
council passed another ordinance. re-
scinding the former ordinance, pre-
scribing the form of the bond, and
changed the form in three PARTICULARS:
First. they were made payable at the
Chemical bank in New York instead of
the place named in the notice; second.
they were made payable in gold coin
OF the United Statee of America Of the
present standard Of weight and finenes
instead of the statutory form, and as
stated in the notice; third, interest was,
made payable semiannually in like gold
coin instead Of annually, as stated in the
notice. The question presented and de-
c1ded was: Has the assent of the voters
been given to the proposed bond? 2"