Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1897-02-18

"A'"i" eho SHUT ptTl0'
9 OF twenty-four hours, possibly within
the period Of two or three hours. TIL
taxpayers Of the city may have had n,
t knowledge whatever that the mayo
I and city council were going to tax,
: any such steps to impose burden o
$5,OOO.OO upon them for an indebted
ness which they do not owe. II tn,
mayor and the city council were tn,
only parties in interest, it might b,
possible to infer that the legislator,
intended to grant them the power tc
create such indebtedness without any
further notice to the taxpayers thar
that OF a mere resolution upon the
records Of their proceedings, Blu,
when 1t is taken into consideration
that this Indebtedness is not an in.
debtedness OF the mayor ana city
council, but that it is an Indebtedness
OF the taxpayers, and an Indebtedness
which the taxpayers alone must meet,
the necessity of a strict compliance
with the law and the necessity of
making the assumption Of such in
debtedness matter Of public notori-
ety. so that the taxpayers might ex-
ercise any legal rights which the law
gives them to prevent the assump
ton Of such Indebtedness, II illegal,
clearly appears. The issuing Of these
bonds affected every taxpayer,
whether voter or not 1t affected the
creditors Of the town, present and fu-
ture; IT involved the making and ex-
ecuting Of contracts which in this case
binds the city, II it is bound at all,
to pay the sum Of 100000 which
was not legal Indebtedness against
the city. II the law had been complied
with and the city council had passed
an ordinance providing for the issu-
ance and exchange Of these bonds,
it would have given the taxpayers an
opportunity, il such indebtedness was
illegal, to apply to the court for an
injunction restraining the mayor and
council from issuing such bonds.
A city Of the second class must
have legislative authority to issue the
bonds Of the city before its officers
can bind the city to the payment of
such bonds
The mayor and council can not
rightfully dispense with any of the
essential forms of proceedings which
the legislature has prescribed for the
purpose of investing them with
power to act in the matter of issuing
such bonds If they do, the bonds
they issue will be invalid in the hands
OF all that can not claim protection as
bona iide holders. Every dealer in
municipal bonds which upon their
face refer to the statute under which
they were issued is bound to take no.
tice Of the statute and all of its re-
quirementsi and when coupons sued
on refer to the bonds and purport to
be for the sem-annual interest accru-
ing thereon, this puts the purchaser
upon inquiry for the bonds and
charges him with notice OF all thew
contain.
The city had no authority to issue
the bonds from which the coupons
sued upon in this action were de-
tached without first passing an ordi-
nance providing for the issuance and
exchange or sale Of such bonds.
The only remaining question to be
determined is whether or not the city
is estopped from denying its liability
upon these bonds by reason of the re-
,ital contained therein.
Where the officers or agents Of a
corporation are authorized by the
statute to issue bonds, but only upon
me condition Of the happening of
which they are made the Judges, or
If which, from the nature of the case,
hey must be presumed to have a
knowledge superior to that of the
public generally; then recital in the
'onds' OF the happening Of such con-
'ition, is binding on the corporation
n favor OF bona fde holder for
'alue. But where the officers have no
'ower to issue the bonds at all, until {
Ifter the occurring OF conditions pre- G