The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-08
honesty ron MUNICIPALITIES.

''corsIdcelng that the aim OF law Is II
triumph of justice and rho protection n
honesty IN transactions made BY munf
cip;I corporations as well as BY pas
.icsliar individuals the superseS
caurt OF a district IN Canada ID
given Judgment IL favor OF i
bunk which hsd advanced monay to i
municipality, but whose payment W.
.eSisted on the ground that the counz
had exceeded its authority in making q
loan. The iaws in Canada aud those E
the state OF Washington are 80 disnsnilx
that no legal application eau &c made q
the decision. hut there Is an underly IN
principle which il certainly not les acs
ceptahie 10 the people OF this state shanto
The people Of Canada.
The facts in tic case are 20 like thon
arising frequently in tho United STATED
that a brief review Of the facts viii DO &
interest. on December Is. isss. the coua-
ell OF Ibervllle parsed a resolution -.
tlcrizing the proper o.ficers OF IN. mus.
isipaiiiy 70 make . proraissory note =
four months 70. s:sss. to consolidate th4;
indebtedness 10 the B..nque Gs .segpie. al
a nee .or that amount Vas aecord.axt..
delivered to the bank. r'ae rot. was a5s
paid AZ maturity. and AFTER sone tins1
the bank brought en- action. the claim
o. the hau.. was resisted upon the grsasa
that when the roto ef earliest date II.
those held BY Che sank MAS Given. The
debt OF The Municipality amounted to &c.
81. and mat as tho tcwa could not LEI
sally borrow m excess {. xa.ao. II n.
sank w>s entities. 20 recover cay nan
az the debt. when sae CITY scniSd h
could anly be TO the cxtoat OF Tie na-ln
az ie.5o. and that the original notes rcp.
rcsontlng The hanks c.alsn. we're cot i.
sally.au,hori=ca he eity 40, Being aba
according TO rs charter, 20 siaa ..self hv
aotes similar - those sued upon. execn
~ an srdcr voted h. the rate aayerx-
the law evideatly hcing very siraiiar !.
that provided "a The charter OF tho e,,x
c: Seattle. The hank answered that II.
loans n question were enly .emDorsrv
made IN waiting partly sor the reccspt 4
taxes end other revenue, and partly =,
tho speculation OF the loan OF ga ga
which vas submitted 80 vote Z. n.
saiy qualified rate payers. and carried
There T. slissinslarity between the Coz.
tsslons which would make the casa az
?licase to any or this elty's obll~atiass
The indebtedness which was contracts, 4,
anticipation Of the FAX levy was rstlass
BY the people. M, the court held ,s,,
the notes apart from The ratification ~.
'nS signed BY the mayer ard coun.e..
signed ~ the secretary and treaSar..
gave them al The effects Q. a rexu,a,
promszsory note. TIE decision then 49,.
on &c lay down thu doctrine TIA. vhen
corporation places a person Ia caar~a
which implies 3 responsibility, ard thu.
Induces laird party 10 rely Of the IN.
tegFisy OF such person. especially = n,as.
tiers eenesrulng the charge occapgea !,
such person, that corporation Is ~
srensssile Tor representations. sesisren..
or ffaa3. e such person r. trust ~ wht.A
third party. acting - good faith. has
Suffered any dsmaSe or loss. Upon so
another greund the court holds The ~
Hast. namely. that TIE city Rad proa,ns
sf me money obtained by Tire note ana
that TIE material and works undertakes
thsensa TIA means obtained hy such loaax
has ossn enjoyed by tho city in the opea
knowledge &c tie rate Payers
There IS. 81 course xay,A sars,~ -.
oses holder might subject = eoraora,sen
10 an uajass claim. ss Tire rFinelpie iaia
down IA this Canadian case Is too neerallv
spplisd, sas where the liability was in.
cerfed ~ regular process. Vita ca a.
Eooa fss,a o. the legislative and exses-
i've bodies. ana NTH no evidence q fraas.
ard naers tie senxass nars snsc-.a b.