Weekly Arizona journal-miner., 1906-11-28
COURT OVERRULES
 CITY'S DEMURRER
Judges Opinion Verbatim, Showing Exactly the Allegations Made By Plain tiffs. Frank L. Wright, ct al--What Superintendent Glass Says of Case.

! bowers granted thc 'lty hv said See. 1 lion l of Articl" II. II seems to me ! that the intent aud purpos" of inc Leg , islaiurc was to confer upon inc City | full power and authority to establish and maintain an electric lighting plant, not only for lighting the streets and public buildings hut also as well for supplying the inhabitants with light for their private uses.
 "I answer. therefore. the first ques. ton in the affirmative.
 | "Thc second question answer in tho negative. That part of our Organic Law known as the Harrison Act pro vidcs. in effect. that no municipal cor porntion shall become indebted in any manner or for any purpose to any amount in the aggregate, including cx. isting indebtedness, exceeding | per cent of the value of its taxable prop erty as ascertained by the last assess. ment. While this provision of the statute is not to bc constructed as pro. hibiting municipality from contract
 ing for the purchase of supplies or machinery needed for any municipal purpose when it has reached the max. imum of it's indebtedness under the Act, when it appears that such sup. plies or machinery may bc paid for from the ordinary revenues of the City during the year when such purchase is made. its purpose and intent is to pro hibi' such contracts from being made and entered into by the City which will result in an increase of the City's indebtedness which may not bc paid for from it's revenues derived from tax.
 ation or otherwise during the fiscal year within which the indebtedness was created without impairing it's gov. ernmcnt or adding to its burden of in. debtcdness in other respects.
 "Thc complaint in this case alleges that the City is indebted in excess of per cent of the value of the taxable property within the corporation, it be- ing charged that the bonded indebted
 ness now exceeds Si0O,OO0, while tho assessed valuation of the taxable prop. erty within the city, by the last as .essmen', was s2,7sI,27I.
 |. "1t is further set forth in the com plaint, that the City, in the purchase
 of the machinery needed to equip and
 establish an electric lighting plant and !, m operating the same will add to the
 indebtedness of the City which cannot be cared for out of the ordinary rev. enucs of the City without impairing . the government of the City, and that h said expense of said equipment and operation arc so cared for it must re- ! suit in the failure of the City to pay 2 valid obligations which it is it's duty , to pay from such revenues and that ' thereby the permanent indebtedness of . tue City will necessarily be added to and increased. Under the facts as al. 'eged this is good ground for enjoininp the City from mourning an indebted. ness for such purpose.
 "The same reasoning applied to the third question must result in the con. 'lusion that the City, having exceeded it's limit of indebtedness, may no, do indirectly what it cannot do directly n the way of increasing such indcbt. 'dness, To borrow money, no matter under what circumstances or how it is
 70 be repaid, is to create m indebted : ness prohibited by the Harrison Act
 unless, as l have said before, this in |, debtedness may be legitimately paid
 from the ordinary revenues of the City Q for the current year.
 eI "Thc fourth question is one of som, difficulty, and the conclusion I hay, D reached is somewhat tentative, as ' nave been unable to examine into th, e question in the light of the authorities | IT any there be, on the subject. M,
 
 0 impression at this time is. that tb. '' power granted to the City to construct maintain and operate electric liphtins plants is granted for the benefit of ,b, p"ohc as whole, and that no special ' privileges of any kind or character r ~h'eh do not confer at least incidenta ! public benefits, is permitted a City. ant mat 1t Is questionable at least if tb, o'y may supply light to certain con sumcrs upon special terms and withhol,
 light from others who may be willin, to pay for sach service. And, further l. that to require of consumers that the, AdvaAcs money to the City to erect it F plant as condition precedent to tb, q Tt9ht to have sueh E0ht ..r,,;o, A.