Omaha daily bee., 1899-05-02
TENTS ARE SUBMITTED
Judge Smith Takes Under Advisemen1
Shea's COntemDt Proceedings

Judge Smith Takes Under AdVisemen
Shea's Contempt Proceedings.
The arguments in the contempt proceed
ings instituted by J. ]. Shea against Mayor
Jennings and the members of the city
council were submitted before Judge Smith
in the district court yesterday afternoon.
Shea appeared for himself, while the mayor
and city fathers were represented by City
| Attorney Wadsworth. Mayor Jennings and
all of the aldermen, with the exception
of Shubert, were present and were inter-
ested spectators Of the proceedings.
In support of his information charging
the city officials with being guilty of con-
| tempt of court by reason of adopting reso-
| lutions to refund the outstanding general
and water fund warrants which he alleged
was in violation of the decree of Judge
Towner in the case of Shea against the
| city, Shea argued that at the time OF the
| trial of the suit a stipulated statement OF
facts was filed. 1t was on this that ne as
| serted that Judge Towner had based his
ruling. In this stipulation the city had
declared it's intention of paying the gen
| eral and water fund warrants from money
in the general fund and water fund, and
the city's action in now deciding to pay
these warrants by refunding bonds was In
direct violation of the stipulation.
Further, Shea argued that last Novem-
Der the council passed a resolution to re-
fund the outstanding general fund war
rants, but that when he filed an amend
| ment to his petition the council agreed Il
| wait until Judge Towner's ruling had beer
received. In his decree Shea claimed judge
Towner had not passed upon the Legality
or validity of the Indebtedness OF the city
but in his ruling had held that the genera
fund warrants and the water FUND war
rants did not come under the constitutions
inhibition, but that the general bonds did.
The funding of the outstanding warrants
Shea argued would change the charactel
Of the indebtedness and bring 1t under tn
constitutional inhibition.
City Attorney Wadsworth argued tina
the city council in the adoption Of the res
olution for refunding the warrants di'
not violate the injunction of Judge Towner
for the reason that the decree expressl.
provided that the injunction did not appl.
to the funding or refunding of legal In
debtedness. In Judge Towner's opinion
which had been made part Of the decree
he said the Judge held that the warrant
under the showing made at the trial di
not create an Indebtedness within the con
stitutional inhibition. and that since Their
was no decree as to their illegality the
stood as a legal indebtedness.
He cited the case of Heinz against Lin
colin from Cedar Rapids, in which tn
supreme court of the state had held tina
the funding of outstanding warrants in
city that was beyond the constitutions
limit of indebtedness did not by such re
funding and issuance of bonds to pay tn
warrants increase the Indebtedness OF tn
city and such bonds were legal.
Summed up in a few words, the questio
to be determined by the court PRACTICAL
is, whether the refunding of the warrant
will change the character of the indebted
ness?" II the court decides that IL doe
it is conceded that he will grant the in
junction asked for by Shea, as in that cas-
the issue would increase that portion c
the city's indebtedness which comes unde
the constitutional inhibition and which
already in excess, according to Judg
Towner's ruling, of the limit allowed b
the constitution, which is 8 per cent c
the assessed valuation of the taxable PROF
erty within the city.
Judge Smith said he would take his dc
cision under advisement but gave no init
nation as to when he would hand 1t dowI