The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-08-15
JERMYN AND MAYFIELD.

Judge J. p. Kelly has handed down
an opinion in the case of William J.
MCDermott against the borough of
Jermyn, a matter of great importance
TO the people of this borough Judge
mcnt is entered in favor of the plaintiff
in the sum of $1,000. The opinion fol-
lows:
In the carly part of the year 1906 the borough
Of Jcrmyn, assuming the legal power to do So,
by adoption vi various resolutions and the pas.
sage Of various ordinances undertook to con
struct system Of water works for the supplying
OF water to its inhabitants. In the course ot the
proceedings It undertook to condemn certain
lands, to contract with certain persons for certain
water privileges. and 1t entered into a contract
with Howell n Blanchard for boring certain ar.
tesidn wells. For work done under this last con.
tact. in June and July. I.9G, the hill OF Howell
4 Blanchard IN th, sum Of S2,lup was approved
by the borough council and an order 10 I've
drawn for its payment. II passed an ordinance
providing for the increase oi its debt, for the
purpose of constructing the water works, the
terms Of which are not sct forth in the facts as
stated. ON Oct. p, lS96, II passed "A resolution
authorizing the issuance of -, ~ Of bonds for
the purpose ot paying its Indebtedness, but filed
no statement in the office Of the clerk ot the
courts, as required by the Act Of April 20. l-7L
becoming a purchaser Of sl,OU Of them. Twcn.
ty.onc hundred dollars OF the amount realized
from the sale uf bonds was applied to the pay
| mcnt of the claim Of Howell 4 Blanchard. aud
the balance of 500 was TUNED into the hands
of the borough treasurer and used to pay other
obligations Of the borough. The two per cent
limit oi Indebtedness allowed by the constitution
was not exceeded by the increase of debt or the
issuing of bonds. Interest was paid on the bonds
| for upwards If two years aud there j. now due
and unpaid 10 the plaintiff the amount of his
! holding OSl,ooo), with two years interest. While
the case stated does not disclose the fact at the
argument it WAS assumed and conceded that the
| enterprise was abandoned in October 1896, hc.
! cause of the courts deciding that the borough
| had no legal authority to construct the works,
a private water company having previous
franchise TO supply water to the borough and its
| Inhabitants
The case stated does not disclose sufficient
| facts to enable US TO pass upon the legality uf
! the bond issue. In section 10, article Of the
constitution it is provided that "any municipality
| mourning any Indebtedness shall at or before
! the time of So doing provide for the collection
| Of an annual tax sufficient to pay the interest,
and also the principal thereof within thirty
| Years" This clause i, mandatory. Borough ".
| Ryan. IL IA. - And II it was not complied
with tho bond issue was Illegal, notwithstanding
| the validating act ~ June I, 1901. Section oi
! the act would validate the bond issue without
compliance with the provisions Of the Act Of
| April %, 1874, hut could not validate the issue
of the bonds without compliance with the consti
tutonal provision above quoted.
| But the ease can hc decided on another ground
! Even though the bonds were issued without au
thority and were void yet il the money hor
rowcd was applied 10 a valid existing indebted
ness, thus merely changing from ono creditor &c
another the borough would he liable for thC
money and recovery may be had against il fol
money loaned. Borough vS. RYAN, supra FouI
hundred dollars of the sum raised hv the sale
| Of the bonds went 10 pay the obligations of the
borough, and the borough had the full hencf
| ot that sum 70 pay her valid SubsiSting debts
The balance went 10 pay Howell 4 Blanchard
claim oi -, 100. Whatever might hc said I,
| the validity oi the latter, without the passage
Of the Act oi Iunc 1, 1901 the first section o
that act makes it legal and valid obligation
II was within the power Of the legislature Il
pass the acts; such acts are always upheld y,
the law Is Amer & Eng. Encyc. Of Law, on
and cases cited; Chester City vs. Black, 1872 Pa
Sos.
Anw nov. 1ath ~ August, 1901, Judgment 4
directed To be entered in favor Of the plaintiff
and against the defendant in the sum Of 81 o0a
with interest at tho rate OF five per cent. pc
annum from the first day Of May, 1850 Eithe
party to have the right to appeal.