Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-04-14
An IMPORTANT RULING
Supreme Court Decides Case OH
Question of City and
County Taxes
oTTUMwA ATTACKED BONDS
Decision Saves City Sum of $4,000 in
Taxes-Bond Issue to Meet Payment
of Bridge Fund Claims Declared Void
Question in Litigation Several
Years.
Special to Times Republican.

Special to Times Republican.
| Ottumwa, April LITTLE city of OF
tumwa will not be compelled to pay
the county bridge tax levied against it
in 1906, providing for the funding
bonds which took up the county bridge
warrants. This means saving to the
taxpayers OF Ottumwa of nearly s15.-
| 600
| After being carried to the supreme
court a second time, after City Attor-
ney Gilmore and Attorney Moon for
the supreme court Saturday affirmed
the injunction Of the lower court in
the case Of former Mayor b. Il. Suits
against II. p. Dana, former treasurer
and the board OF county supervisors.
The ruling of the lower court was at
| firmed, following reversal Of the
same case at previous hearing be-
| fore the court. This means that the
injunction secured against the county
enjoining 1t from collecting the three
mill tax is made perpetual.
In March, 1906, Judge Vermilon
granted the city temporary injunc-
ton restraining the county from col
lecting the three mill tax issued in
favor OF the county bridge fund. In
June of the same year the defendants
attempted to dissolve the injunction
but the motion was overruled by
Judge Sloan. Defendants then APP
pealed the case to the supreme court.
After that court had handed down an
opinion reversing the district court
and holding the city property taxable,
the city filed petition for a rehear-
ing. which was granted, and the APP
peal was re-argued. with the result
that the court found in favor of the
city, directly opposite to the first rul-
ing.
The decision of the supreme court
means that $4,000 of county funding
bonds OF 1898 are declared null and
void. In that year the county board
Of supervisors issued $4,000 Of bonds
to take up a like amount OF bridge
warrants. Before the bringing of the
suit a part of the bonds amounting to
$4,000 had been paid. Under the
laws Of Iowa the board of supervisors
levies a tax for the building and re-
pair of county bridges, but such tax
cannot be levied upon city property
and none of the taxes may be used
for bridges within the city limits.
The city council levies taxes on city
property within the city for the pur-
pose of making and repairing bridges.
Before 1898 the county had spent 1884,,
600 for bridges all outside of Ottum
wa, and had issued warrants for the
payment of that amount. All these
warrants were made payable only out
of the county bridge fund as distn
guished from the city bridge fund.
But in 1898 the county board Of su
pervisors took up and cancelled ali
the payments, and issued county fund
ing bonds for the same. These bonds
are held by the Northwestern Mutual
Life Insurance company of milwaukee,.
Ever since the bonds were issued the
board of supervisors had been making
a tax levy upon all the property in
the county, that within as well as that
without the city limits, to pay inter
est and part of the principal of the
bonds. The suit was to enjoin the
levy and collection on city property to
nav the bonds