The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-04-29
CANNOT ISSUE
BONDS OVER LIMIT
Hally Tells Estimators They Can't
Anticipate Charter Amendment
Means Board Must Meet Later.

in conference held Thursday
morning. Corporation Counsel Hally
gave IL as his opinion that the board
OF estimators has no power to author
IL the issue Of bonds for public i'm.
Iprovemeuts. in anticipation OF an in
crease OF the present bonding limit
beyond the limit OF bonded indebted
ness nov set by law
President Robinson. OF the board OF
estimates Controller Doremus Con
;rolleTto-be Heineman. Assistant Cor
poratiou Counsel Atkinson and Health
Officer kiefer were parties 10 the con
ference. TIE decision will nave con
siderable bearing upon the form OF
ection 10 be taken by the board OF es'
Inmates in disposing OF number OF
important matters
In reality, the opinion Is expected
to have very little real bearing upon
the question of appropriations. since
the objection finds it's own remedy IN
the placing OF a clause IL the bond N
crease charter amendment. giving au-
thority for the calling together OF the
board OF estimates in special session
! to pass upon bond issues projected.
since the bonds which Ii had been
planned 20 issue under the increased
limit would not be available III any
event until after the popular vote by
which the increase is approved, The
only added delay will be in the time
taken 20 call the board or estimates
together.
! Under rhe circumstances. IL Is hard
tly likely that there will be stampede
on the part OF the estina'or5 To put
| any additional permanent Improve
pents on the tax levy
Tie situation rs that the council has
ali ready passed fayorably uron a mum
Der OF appropriations with the prov.-
sion that they he provided for by
bond issue The total OF these ex.
ceeds the margin or approximately
$4,000 which the city now has un-
der the present bending limit The
intention has been TO have the excess
of bonds authorized now end issued
after the bonding limit Is raised Prac.
tically all he sewers allowed as well
as 100000 of the hospital fund and
500 900 OF grade separation fund are
In The list az excess over the bonding
limit
Hally has decided that the authorize
ton OF these excess bonds will have
40 effect.
The board OF estimates can author
lie bonds only up TO what il considers.
in its best judgment. will be two per
cent of the assessed valuation or the
city" stated HALEY al the conference.
1T cannot authorize bonds ON the sup
al, 10
10 be approved by the people which
will increase the bonding limit There
fore, all authorization OF bonds be-
yond the limit is null and void
Controller Doremus was at first in
clined to take issue with Hally, main
taining that the authorization might
be made by the estimators. but that
the bonds could not be issued until the
limit is increased, arguing that no
debt has been created until the bond
is issued. Later he agreed with
Hally
II was agreed among Hally. Dorcmus
and Heineman, however that 10 harm
can be done by having the board OF
estimates allow the bondissue Items
In fact. there may be considerable
advantage gained. since there can then
be no obstacle in the way Of calling
the board OF estimates together agai 1
after the charter is amended 10 re-au-
thOrize the bonds. Were the estimat
ors 10 cut out the items now. there
might be legal objection TO their be
inc replaced in a special session
At the meeting OF the council Sat
urday morning a resolution will be
presented naming the order in which
the bond-issue items are TO be allow
ed. Thus IL can be seen which come
within the bonding limit and which
are merely allowed now for the sake
of clearing the way for special action
next fall The eStimators have three
courses of action with regard TO the
sewers and such other Items as are
now provided for in the excess bond
propositions; to put these improve
ments on the tax roll and levy their |
cost in one year. TO cut them out alto |
gether and let them come up next
year afresh, or 20 authorize bonds for
them and have special meeting OF
the hoard Of estimates called after
the election 10 ratify the action taken |
now
IL Will be necessary In the charter |
amendments to be submitted TO the |
people ~ the next election to dis |
unctiy state that the board OF esti- |
mates NAV Meet in special session |
after The election
The board OF estimates is TO adjourn |
-l---l+tda+- ht-aId- President Robin !
SOL arranged the conference with 2 /
view 20 getting the legal questions az /
tectiue bond issues strdightened out /
Nealth Othccr Kieier came in TO learn I
u there is danger oi The hospital pro- |
position falling through because Of be.
lux made coutugeut upon the adop T,
lou a. charter amendments
Il; Is possible t8dJ an attempt will T
Ne made iu Tm day evening meet, (
INK Oh the board O.. estimates 90 pass
the hospital item Ly spreading it all 7
/ upon tbc tax rolf
( WASHER DRAWS FINE.
Justice Stein Gakes Firss Coovi-tioo (