Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-08-19

and contingent. whether contracted by
virtue Of one or more acts Of the gem
eral assembly, or at different PERIODS
| OF time, shall never exceed tho sum
Of two hundred and Atty thousand dol
| lars: and the money arising from the
| creation OF such debts shall be applied
| to the purpose for which 1t was obtain
! ed, or to repay the debts so contracted.
and to no other purpose whatever"
| Now does the statute, chapter II vio-
late, is 1t repugnant to, Is 1t forbidden
| by that quoted section? It does. II II
creates debt In excess Of two hum
dred and fifty thousand dollars.
| In the first place In and by It, the
general assembly imposes continuing
tax levy, to continue, and be collected
year by year. for ten years. each Of the
first two years at the rate OF one half
mill on the dollar. and the next eight
years at such rate as will produce one
hundred and fifty thousand dollars per
year. all for the purpose OF creating .
sinking fund; 1t then directs that the
purchase price Of certain specified los~.
and blocks in the city of Dies Moinea
which 1t directs the executive council
to acquire. by purchase or condemns
ton for an extension Of the capitol
grounds, be paid from such sinking
the end. that said specified real estate
may at once be acquired and paid for,
1t authorizes the executive council I'd
issue and market at once interest bear.
ing time warrants or certidcates' pay.
able from said sinking fund. The said
levy will probably realize 31.90O.ooN
and warrants or certificates will subs
stantially to that aggregate amount. BE-
In little while issued and marketed,
for it viii take substantially that
amount to pay for the specified lotS and
!! blocks.
That's the statute authorizes the is
sue and sale Of interest bearing state
! obligations, warrants or certificates
in an aggregate amount of about ST.
100000, principal tn not to exceed ten
years. and interest maturing annually
or semi annually.
Suppose the general assembly, In.
stead of enacting the statute In ques-
ton, had enacted one directing the
executive council to acquire for the
state the designated lots and blocks
for extension, Of the capitol grounds.
and, to the end that they might be
acquired and paid for at once. direct,
ing the issue and sale of interest bear
ing bonds, maturing In series, 3375..
900 in 1914, $375, 900 in 1916, and $50.
900 each year for the eight succeeding
years. Such statute would be uncon
stitutional as repugnant to the section
two above quoted.
The statute in question, chapter IA
If held valid. by indirection will &C
complish the same identical object
and none other, that the supposed
statute would directly accomplish, and
in effecting the accomplishment, will
cast on the same taxpayers the same
burdens, same In principal amount,
\ - {~t1 kS
of maturity, all as the supposed statute
would cast:
Wherein would the supposed statute
materially differ from the one at bar!
Under the supposed statute, the states,
or rather the peoples, written prom
fses to pay with interest, would be
placed on market and sold; under the
statute In question, the states Or
rather the peoples written promises to
pay with interest. are to be placed on
the market and sold. So far there 10
no difference.
The promises under the supposed
statute would be burdens on the
Identical same property, no more and
no less, that the promises under this
statute will be burdens on, and vice
versa. And does 1t take less money to
paw or is 1t easier to raise the money
to pay, @1.s00,o0o II the promise there.
unto should be under the supposed
statute, than II under the statute at
bar? So far there is no difference.
But there is this difference. Tho
written promises issued under the
supposed statute. would be named
bonds" while this statute names the
promises to be issued under II war.
rants or certificates"
But this is the difference On which
reliance is based. In the supposed
statute it would probably be left to
succeeding general assemblies to make
the necessary levies and appropria-
lions, from time to time, to dischargo
the bonds as they would mature:
while under this statute, chapter II.
levy from which will come money
amply sufficient to discharge the war
rants or certificates" as they mature.
| is made at once by the statute itself,
and by the statute itself appropria.
lions are at once made of the proceeds
| from said levy to the DISCHARGE OF said
! warrants or certificates and the In
terest that will accumulate-in short.
that the levy Is actually made, ana
| JuOuSu ltS pdyAlACAI W Viz va Rs~s
| is eased off into ten annual INSTALL
ments, nevertheless the general as.
sembly could by anticipation, act on
the fiction that the monies that VIII
be in the end realized from the levy,
had already been realized and were
actually in the treasury. That is, BY
the introduction of such fiction into
| the premises, 1t is claimed, that the
[ warrants or certificates" in question
can be looked upon as issued against
moneys actually in the treasury.
This whole levy made-or purport'
ing to have been made-by the thirty
fifth general assembly,. will In the ten
annual payments, take just as much
money from the tax payers to pay
i these promises -"warrants or certifi'
Lcates,' as under the supposed statute
would be taken by the different levies
made from time to time, to pay the
"bonds." Each statute-the one az
! bar. and the one supposed-will OF
would take the same amount OF money,
and from the same persons. ana IN
49, sono annual instaI1ment6. As the