The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-03-11
SYLLABUS OF OPINION
Filed by Supreme Court in County
Warrants Case.
IMPORTANT POINTS RULED ON
sUCCINCTLY STATED,
And the Decision Thus Simplifed-
In the Case of Mclaughlin, Re
ceiver of Park City Bank, VS..
Mulloy, the Judgment of the
Lower Court Is Affirmed.

The supreme court yesterday handed
down a syllabus of the opinion rendered
in the county warrants case decided by
that tribunal on Saturday This resume
presents the issues as decided in a short
and concise form as follows:
constitutional Limitation-Section g. of
article IA, OF the constitution declaring
mat no debt in excess of the taxes for
the current year shall be created by any
county unless majority of the voters
qu2nned to vote thereon shall have de-
cided TO create it, at an election for
that purpose" Held, to mean that no
debt shall be created by any county dur
ing the year without such vote, which
the revenue of the year wlll not pay.
constitutional Provision, Interpretation
the language OF section 3, that, mo
debt, in excess of the taxes of the cur
rent year shall be created" cannot be
held to mean that the county may eX-
pend the entire revenue of the year. and
in addition thereto, create Indebtedness
equal to the tax levy of the year.
debt cannot be incurred in one year and
loated over to the next and paid out of
its revenue without a vote-the indebted
ness OF the year must be paid out of its
revenue.
Indebtedness, Meaning of Term-If Of
fetal or other services are not paid for
as they are rendered, or goods and chat
tells are not paid for on denvery, a debt
is created in the sense in which the term
is used in the section mentioned, though
there may be money in the treasury TO
pay it.
The language of the constitutional pro-
vision NO debt in excess of the taxes
for the current year shall be created"
means all debts which cannot be paid
out Of the revenues of the year. In de-
termining when the limit is reached
liabilities imposed by the law should be
taken into consideration, as well as those
created by contract.
Not only the revenues arising from the
tax levy of the current year, but those
from Licensees
as we'll must be paid upon the indebted
ness arising during the ear whenever
collected, so far as required; and if an
excess remains il should become a part
of the revenue of the following year.
With respect to the year 1896, the court
held that the amount of the revenue of
1895, in the treasury on the first day of
the former year not required to pay in
debtedneSS which bonds had not been is
sued to pay, and the tax levy of 1896 and
revenue from all other sources for which
the revenue so far as it could
be collected at any time with all reason
able diligence, to pay all the indebtedness
of that year. The rule being that the
revenue of the year so arising must alone
be appropriated to the payment of the
liabilities arising during the year.
The county will not be estopDed to
deny that any county warrant is beyond
the debt limit. though the claim for which
it was issued was duly audited and the
was duly issued by the auditor
ana cerIlIeQ De WITHIN the u6DI INIT.
All persons receive warrants which may
be above the debt limit at their peril
Estoppel-County warrants or county |
bonds issued without authority of law
are not valid in the hands of persons re- !
ceiving them or to whom they may have |
been assigned: such persons in a legal |
sense cannot be innocent holders.
The court held the answer insufficient |
because it did not show whether all the /
revenue of 1886, had been exhausted.
The fact that more warrants had been ,
ssued than there was revenue to pay, |
furnished no excuse for not paying as
ar as It would go.
If any portion of the taxes assessed for
my year are collected after its exDira-
ion. they should be applied to the pay
nent of any remaining Indebtedness of
hat year so far as they will go. and if
lot so required they will become a part
# the revenue of the succeeding year,
md so on
If any portion of the revenue of any
ear IN the treasury on the first of the /
eXt year is applied to the payment of
he indebtedness of the latter, an equal
mount of its revenue should be applied
o the payment of the Indebtedness of
he former year # required.
Before reversing the case because the
ounty treasurer was not a party. upon
he request of the parties, and of the