The Detroit times., 1911-05-05
|AhhOuhCEsPL
FOR BUDGET SUIT
Board of Commerce Will Resort To
Old Procedure, Asking Court To
Decide Six Questions.

Attorney Fred A. Baker. who has
been retained by the Detroit Board
OF Commerce for the purpose OF TAX
ing action to sustain the 1911 tax
budget as passed by the common
council and board OF estimates, ex-
poets TO 20 TO Lansing, Thursday az
ternoon, TO obtain the attorney-gen-
erals permission TO file an "informa-
ton In equity" against Mayor Tnomp-
son. Corporation Counsel Hally and
Controller Heineman. This is an old
proceeding. but one that is seldom
resorted to nowadays.
II the attorney-generals consent is
forthcoming. President Milton A.
McRae, OF the Board OF Commerce,
will appear as the relator, not as a
representative OF the board. but as
an interested taxpayer. though the
suit will be brought in the name OF
the Encouragement as plaintiff ex
rel. The information will include a
| transcript OF the proceedings Of the
common council and the board OF esti'
mates with respect TO the budget. a
COPY OF Corporation Counsel Hal
| lys opinion on the tax limit and
Mayor Thompson's message on the
subject The information will ask
! for judicial determination OF six
questions and will pray for an injunc-
ton enjoining the issuance OF any
bonds until the questions in issue are
1 Aat Inc no
cided are;
Does the per cent tax limit
fixed by the home rule law apply
in Detroit?
Should bonds issued In lieu or
taxation be considered in fixing
the per cent limit?
Are taxes or bonds for school
purposes subject to charter linn.
itations. the school board being
separate corporation?
Is the special act passed by the
last legislature. increasing the
city's bonding limit from to 3
per cent. valid?
Is the legislative act authoriz-
ing the issuance of 100000 ad
ditional water board bonds,
valid?
Are the sewer bonds author
ICED by the common council and
! board of estimates valid?
III the Encouragement will lend the
use OF his name, II Is expected that
| the bill will be fled in the Wayne
circuit court within a week. and AT
| early decision Is looked for. Attorney
General Kuhn will be In Detroit Fri
| hA
| with Attorney Baker, and Mayor
| Thompson and Corporation Counsel
Hally will be invited to the confer
ence.
Mayor Thompson and Corporation
Counsel Hally are working on little
plan OF their own, and II Is believed
they will spring a little surprise be
fore the Board Of Commerce suit II
begun.
Milton A. McRae gave out this state
ment, Thursday
Mayor Thompson's statement
Wednesday, made apparently before
he understood what the Board oi
Commerce is trying to do, may mis-
lead some people regarding the action
OF the board, relative TO the budget
Wednesday morning / called on Con
troI1er Heineman and asked him II
the budget as passed by the board OF
estimates and council would be paid
out in the future without further con
sideration by the courts. He said that
legal action would be necessary, but
that he would cooperate with the
Board OF Commerce In any way with
in his power TO secure IL.
Fred A. Baker. who for several
years was corporation counsel OF De
troit, had given an opinion while the
board of estimates was In session that
the two per cent law did not apply
to Detroit. Therefore, we secured Mr.
Bakers services, and after confer
ence with the controller informed the
mayor OF what we intended TO do. The
only notice OF the Board Of Com
merce in acting in this matter is to
provide schools, sewers. police and
fire protection and other necessary
improvements for the city Of Detroit
The fact that Mr.. Baker is one OF
the twenty-odd attorneys retained,
understand, by the ID. u. r. In Detroit,
/ has nothing TO do with the case. ex-
cept that IL Mr.. Baker Is right in his
opinion the d. Y. X. will have to
pay more taxes, instead OF less How
ever, every taxpayer, large or small,
will profit In my opinion, by the bud.
get for the ensuing year remaining as