The Detroit times., 1912-02-16
DETROIT'S LIBRARY AND
SCHOOL BONDS NOT IN
TWO PER CENT LIMITATION
Supreme Court Rules That They
Were Not Intended To
Be Involved
EDUCATION IS SEPARATE
Not Included in Limit of Indebt-
edness For Municipal Pur-
poses, Decision Says

LANSING, Mich, Feb. 16-In an
opinion handed down by the supreme
court today, the court holds that De,
troit can issue library and school
bonds outside of the two per cent
bonding limitations OF the present
city charley
In part, the opinion reads:
"The home rule Rct, passed pur-
suant to the provisions OF the new
constitution, simply keeps the city OF
Detroit where II was under It's for
mer charter, subject to all Its pro-
visions and restrictions until proper
sters have been taken In conformity
: with the act to revise the charter
While certain of the city officials
ex-oficio, act for and with the boaid d
of education In carrying out It's scheme
OF finance, all these provisions are
separate and distinct from any
provisions In the city charter, which
Geals with strictly municipal expenses
and indebtedness. While the mayor
and common council Of the oity have
a restraining control over the estl-
mates made by the school board, and
may reduce the same, even though
the charter limit of two per cent IL
not reached, It may be regarded as
discretionary power, conferred oy the
school act for the common interest, 10
: harmonic and balance expenditures
between two co-extensive and co-ordl-
nate corporations OF the same terri
tory supported by the same com
munity.
THE title OF the charter of the city
OF Detroit gives no notice that the
educational system Is involved. IL
irakes no provision for 1t.
The school bonds and toe library
honds of the city of Detroit were not
intended to be, and are not included
.r the two per cent limit OF Indebted
less for municipal purposes Ak speci-
fed In the charter"
News OF the supreme courts de-
cision In the bond case was receive.
.oyfully In municipal circles. The de-
cision removes the legal cloud that
would have prevented the marketins
of the school and library bonts even
il they had been issued and under the
ruling that these are not strictly
municipal bonds. there Will now De
considerable leeway in the issuance OF
other bonds, such as sewer bonds, un-
der the charter.
City Controller Heineman. when Ia
formed OF the decision. saic that
school bonds TO the amount OF not 10
exceed $250,000 and between $50,0ee
and 800, 900 worth OF sewer bonds
would be issued within the next four
or Ave weeks, In all likelihood.
The city will also be free, under
decision, to issue bonds :or tho
q, central library site on WOOD
fard-ave, from Farnsworth to Ferry
8ves. &
The decision is another jolt to For
mer Corporation Counsel Hally ana
Mayor Thompson, who contended thar
all bond issues came within the two
per cent limitation. On the ground
that the limit had been exceeded, me
legality of last year tax levy was
called into question by Hally and the
MAYOR, and the suit just passed on by
he supreme court, was the result
Previously Attorney Fred A. Baker,
acting for Milton A. McRae, president
of the Detroit Board of Commerce, and
others. filed a bill for an injunction
IN restrain the mayor and Mr.. Hally
ero,n claiming that the tax levy was
illegal. hoping in this way to get a
judicial determination OF the law
Guestions involved. Judge Murin
however, held that as these were pre-
sented in a merely academic form the
.-,eert- without jurisdiction ana III
, was sustained by the supreme court.
The library commission then start
cd suit to compel the city controliei
70 issue bonds for the purchase o'
sites, thus bringing the issue square
~ before the court, and the board ol
education and health board joined III
The case reached the supreme eont'
ON an appeal from Judge Hosmers oe'
cision, which sustained Judge Hairy
contention.