Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1898-06-11
IMPORTANT DECISION.
Judge Cherry Holds That County Warrants
Draw Eight Per Cent Per Annum,
ELLSWORTH OAGetTr WINS HIS CASE.


Judge Cherry rendered an important
/ decision today IN the case of Els
worth Dirgett against g. H. Lynch,
county treasurer. holding In cffcct that
county warrants. issued and registered
Ia 1894. hut then being In excess VI tho
county's debt limit hut afterwards
validated by the LEGISLATURE of 1896. DO
draw interest it the rate Of per cent
per annum from the date VI rcgistra-
ton In 1921, TO the present time.
This ease came up few weeks ago
ON "a hearing ON demurrer by the de-
PENDANT 60 the petition u the plaintiff
for writ of mandate.
In hi application for the writ Dag
gett alleged that h. was the holder NJ
two county warrants amounting to go
and 10 which % was conditioned to pay
Interest nt the rate 90 per cent per
annum from the date uf the prcscnta-
ton u the warrants until funds sum
Client were In tho hands VI the county
treasurer 90 pay the principal and in-
trrrHt thereof In December. 1885,. plain
TN alleged. the warrants were pro-
Hgutsd but payment was denied for
want 81 funds. ON the same day the
warrants we're Registered hy the treas
urr. u WuH further set out that at the
time of the Issuance of the war
tlnis The county had exceeded
iH debt llmlt allowed hy
law Tor the year 1895. hut by an act or
the Legislature. In force on the 9TH Of
june. 1896. the warrants were validated
and confirmed. ON the goth of scptcm.
Der. 1897. DaEgott presented the war
rants when Mr.. Lynch declined to pas
any Interest except the amount aCcruing
from the 9TH % June. issd. at the rate
~ por cent per unuum. Dargctt also
claimed Interest from the date of their
registration at the rate Of 5 per cent
per annum.
The question Tor Judge cherry was
what cneCt the act of 1896 validating
the warrants. had upon the warrants
with respect 60 the accrued interest az
the time the net took effect and the
Interest aCcruiug subsequently. Com
mcnting on these points the court Hnya.
1T would seem that the prrHump.
ton ~. that the Legislature. when Do
validated ana confirmed certain Illegal
warrants knew NJ their existence. aud
N their terms respecting Interest. ana
the act being in lts nature retroactive
and Retrospective. % would follow that
the Interest was tn validate an the
warrants ~ that class Including IN.
terms under and by which they had
been delivered a. the respective holders
The contract In the warrant b. nm on
tircty. that iH tn pay q certain sum NJ
money. ana under certain conditions o.
pny \ per cent interest when the
Legislature validated this contract Il
revived the entire contract and thus
made the county liable Tor the Htipulnt-
81 rat" N Interest from the date " the
original registrations the registration
having been made prior TO the act 81
1885. the eject ~ the act would DO 20
rltify and confirm the action ~ the
county truufufrf In registration.
County Attorney Van Colt contsnded
| that the act uf the Legislature known
AZ the county government act" went
Into vnrrt un thg same date ~ the act
validating the warrants did and that
tho former provided Tor the payment 81
/ only D pr cent ON county warrants
IuiEo Ch.rry holds that tho ,wo nctr
| nru cnufUly separate, We're approved on
| two dlnrfynt days md have no refer.
| tnCn tl each other The court also
| nniH that one act ls clearly rrtrosptc.
tive. while the other u prospective. ono
| hrt fU'uiIug exclusively tn "a past
/ tNtaAN iIHut while the other WA lH
! rtgului, ilr conduct ~ county officer
] fur The future, and therefore does moi
| affect pho utHH no bar
] Defendant also referred 90 the npIn.
] ION m iHH state supreme Court ln 10.
| case Hf fhH Pleasant Valley coal com
| pirN ~ ihn county commissioners.
! 'lu that HnHf.' the court says. "tha
! question before th' court vlH DO nsepr.
! tain 90. true debt limit NJ Salt Ink.
| county iHr ihH year 1856 and 10 have
correctly understood thnt opinion, tn
| court decided that Interest ON these
| validated warrants, previous 90 june
] 3. 1875. should not constitute an iu.
/ lHhiHdu.- ftr that year"
| Tho count Then uvrrfulcr the demurrer
/ ON l.I OH. gfuunda urged, Including h
| gllIW 'uf Interest should stop after
Sept CD lsia
'lt l.Hi Is not paid. concludes N
court Hn.u iur by ths reason ~ th
fault ul fHr debtor, or where NJ yaiU
icrirr ~ made, Interest does not cease
90 ruu."
~. supreme Court viii now pass M.