The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-31
Campbell, Wild d Co. Claim the Stat
utory Limit of Indebtedness Has
Been Exceeded for Years.
PRESENT BONDS ILLEGAL
AND PROPOSED NEW ISSUE THERE
FORE SAID TO BE INVALID.
Figures Tending to Show that In
dianapolis Has Been Carrying
Bad Bonds for Ten Years.

IL NJ. CampDell ana y. r. WHO, OF tne
firm of Campbell. Wild & Co.. bankers of
this city, fled suit yesterday in the SUI
perior Court against the City of Indian
apolis and the Board of School Commits
sioners to restrain the issue and sale Of
the 100000 of new refunding school bonds
on which bids will be opened az noon to-
day.
The suit is in no sense a malicious one,
but is prompted by general feeling among
bond buyers that the city has exceeded
the per cent. of indebtedness prescribed
by law and that, therefore, not only the
proposed issue but also other issues that
may be made are inviolation Of the law
and are invalid.
While 1t has always been felt that the
city issued the bonds in good faith and in
tended to pay the principal and interest
due on them. good lawyers have sugges-
ted the possibility of some interested party
asking the courts for an injunction re-
straining the treasurer from paying either
the interest or principal on the bonds
whenever. favorable opportunity presen-
ted or some party felt that he had a
grievance against the city or the owners of
any of the bonds In short the bonds have
been considered to be ''shaky," and in an
effort to protect innocent purchasers who
are clients Of their firm, Messrs. Campbell
and Wild have brought the suit, intending
to carry 1t to the Supreme Court soon
as possible to secure an expression as to
the validity of the various issues.
In discussing the issues involved in the
suit and the legal and business aspects of
the case. the complaint, which was drawn
hxr w
fore, to wit, on or about the 1st day of
March. 1890, the civil City of Indianapolis
was indebted in the sum of 1905. 500. and
said Board of School Commissioners was
indebted at the same time in the sum of
$4,000, making the aggregate Indebtedness
OF the two corporations s2,145,5oO; that the
total assessed taxables of the city of In
dianapolis at that time. shown upon
the tax duplicate for 1899. were s5S.2O5. $50;
that per cent. on said last named
amount was 1,165, 117S0; so that the aggre-
gate school debt and civil debt of said city
at that time exceeded per cent. of the as
sessed taxables in the sum Of 1851, 1892. 20.
Plaintiffs further aver that, at that time.
there were, as they are advised. some
small amounts of property outside the city
limits which were assessable for school
purposes, but the amount thereof was so
small as not materially to affect the
figures as above stated. Plaintiffs further
aver that, as appears from said-statement,
the debt of the civil city alone at that
time was more than 100000 in excess of
the 2 per cent. limit and the plaintiffs
further aver that the debt of the civil city
of Indianapolis on Jan. i, 1900, aggregated
81, 152, 500; that on the same date the debt of
the school corporation aggregated
81, Ola, 446S0; making a total debt for both
said corporations on Jan. 1, 1900. of
s., 167, 246S0 and that all said Indebtedness
is still outstanding; that the total assessed
taxables as they existed on JAM 1, 1900, and
as they were returned by the auditor on
Jan. 2, 1900 being the assessment for 1899,
aggregated s123 295, $40. Two per cent of
this amounts to 81. 465 $3.50. showing an ex-
cess Of the aggregate of the two amounts
over the per cent limit In the sum of
$701 $50. These plaintiffs aver that at all times
there have been, as they are advised, some
small amounts of property outside the city
limits which were assessable for school
purposes, but that said amounts were so
small as not to materially affect the fig
ures above given
THE plaintiffs further aver that at no
time, between the 1st day OF January, $780,
and the present time. has the aggregate
of the Indebtedness OF the city and said
Board of School Commissioners for school
purposes been as low as per cent. of the
assessed taxables for the then current year
as the same appeared on the tax duplicates
of the said city, although by means of in
creased assessments and payment of
portion of the debt of the civil city the debt
of that city alone has been brought within
the per cent. limit
ISSUE OF BONDS IN 1890
1.-The plaintiffs further aver that on or
about the LIST day of March, $780, the said
Board of School Commissioners, acting
for said school corporation, issued bonds to
the amount of $4,000, payable ten years
| after date and drawing interest at the
rate of per cent. per annum, which bonds
! were sold at not less than par by said
Board of School Commissioners and the
proceeds thereof used for legitimate pur-
poses; that afterwards, on or about the
| LIST day of July, 1880, said board In like
| manner and for like purposes issued and
| sold at no less than par $4,000 additional
bonds, payable ten years after cate, bear
| ing interest at the rate of AZ per cent.
per annum, payable semi-annually, the
! proceeds of which were also in like manner
used for legitimate school purposes; all of
| said bonds so issued in 1890 were signed by
| the Board of School Commissioners by its
proper officers. under it's corporate seal
| only, and contained only Ihe promise to
1 Day Dy Sdlu DOdfus anu Va Sdiu JULIUS
| have thenceforward been outstanding and
| interest has been paid upon the same from
, time to time semi-annually as the same
matured; and $4,000 of said bonds will be-
| come due on the 1st day of March. 1900.
| with interest thereon for six months, and
the balance on the LIST day of July. 1900, but
| the holder of said $4,000 OF bonds has
! agreed 10 surrender the same on the 1st
| Gay Of March, 1900. upon the payment OF
| the interest thereon to April 1, 1900.
1.-THE plaintiffs further aver that. In order
! to meet and take up said bonds upon March
has adopted resolutions directing the sale
| on Jan. 81. 1900. and the issuance on March
| 1, 1900. of bonds in the sum of 100000 bear
| ing 3iz per cent. interest, payable semi
| annually to be dated March l. 1900. and has
| duly advertised said bonds for sale upon
| sealed proposals TO be opened at the hour
| of noon at the said school boards Of
| fee in the library building. Indianapolis.
| Ind on Jan. 81, 1900, said bonds to be
| issued TO be used In taking up and fund
| ing the prnc.p pal sum of 100000 OF bonds
| issued In 1890 as heretofore stated.
WILL PAY UNLESS RESTRAINED.
s'The plaintiffs further aver that on the
list day Of March, 1900. the said Board of
| School Commissioners. unless otherwise
ordered by the court, will pay out OF the
public funds In the treasury. irrespective of
the issue Of said new bonds. the interest
on said bonds issued In 1880, aggregating
the sum of. to-wit. sl,s125o, more or less.
"These plaintiffs further aver and charge