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

TUESDAY, AUGUST -,
as the legislature had created the
levy and the fund, that 1t did not
create state debt, but that was not
necessary to Anal disposition Of the
case, and opened the door for the
creation Of liabilities to be paid Nv
the taxpayers running into amounts
equal to the value Of all Of the prop.
erty owned by them. In the case Of
Ash VS.. Parkinson, 5 New, Is, the
supreme court Of that state held, that
where the state was already indebt-
ed to it's constitutional limitation,
the legislature might levy a tax and
pay the salaries Of its members and
expenses OF the houses, in anticipa-
ton OF the tax to be collected, with
out increasing the states indebted
ness, That was only to pay the ordin-
airy and usual running expenses Of
the state government and has no ap-
plication to the case at bar. The de-
PENDANTS cite Flockton vs.. Lambert
son, 80 Mimi. 1877. ~ N. w. Rep, 50.
1t must be conceded that that case
strongly supports the contentious
made here. But It is not u we'll con-
sidered case, In no manner discusses
the rules pertaining to the interpreta-
ton and construction of constitutions
al provisions and does not cite SIN
gle case where similar provision has
been construed, and Is In no manner
to be compared with the considera-
! lions given by the court to the case
Of Newell vs.. People. supra, and as
between the two cases, standing
alone, there 10 no doubt but the rea-
soning Of the New York case should
appeal more strongly to the courts Of
Iowa. Other cases were cited by the
defendants. but the foregoing are, rs
l understand It, those upon which
| they place the greater reliance; and
while I have examined them careful
ly, they do not appeal to the 1hdg-
ment Of right and Justice between the
taxing power and taxpayers Of the
state, investigated by the light Of the
fundamental law Under the rule and
aids of Interpretation and construc-
ton approved by the highest tribu-
nails OF all jurisdictions as does the
case OF Newell vs.. People, supra.
The defendants rely very largely,
II not entirely. upon the, principles
announced by the supreme court in
the case Of Swanson vs.. City Of OF
tumwa, 11S Iowa, 161, and certain
other cases are referred to and anal
yzed In that case. and that case takes
advanced grounds over any other in
Iowa, 1t is not necessary that
they be here cited or otherwise refer
red to. Section 8 OF article II Of the
constitution Of Iowa. IL as follows:
"No county, or other political or
municipal corporation shall be allowed
| to become indebted in any manner OF
for any purpose. to an amount In the
aggregate exceeding 8 per cent.
UNI OF the value Of the taxable prop
erty within such county or corporation,
to be ascertained by the last state
and county tax list. previous to incur
ring of such indebtedness"
| The decision In the Swanson case
is construction Of the above provi
sion as applied to municipalities; and
lis built on the propositions. sub
stantially stated, as follows: That
J, municipality derives all its power, in
Guiding those to raise revenues BY
taxation, and those to incur indebted
ness, from the Legislature, and in such
matters, the legislature is under no re-
strictions excepting municipality
cannot be authorised to incur an In
debtedness In excess Of 5 per centum
OF the value Of the taxable property
within It's Jurisdiction. From such
propositions the conclusion must fol
low that the legislature may authorize
municipality to tax at any time FOL
municipal purposes, at any rate, be the
rate ever SO great, extrayagant or bur
densome, also that the Legislature
might authorize municipality to levy
q special tax to be continued for any
length Of time, any number Of years
8, 10, 20 or so, absolutely irrepealable
by the municipality or its officers. And
unquestionably the legislature could
authorize municipality to pledge a
special levy 1t was authorized to make
and continue and, Of course, when once
pledged 1t would be irrepealable until
the pledge should be satisfied. Such
special continuing levies the legis
lature had authorized our municipali
| LtcS " LldhC duu PACu6Cs dAu Ny ~
pledging render irrepealable. to raise
funds for the purchase or erection Of
waterworks, and such special levies
having been made and pledged by the
city OF Ottumwa, the supreme court In
the Swanson case, decided could be
anticipated to theirful extent with
cut creating debt, even though had
the contract been made and carried
out as set forth In the ordinance Of
the city, bonds would have been issued
in the sum OF 100000 and before q
complete redemption thereof, interest
would have accumulated to the amount
of $556,O00 or a total, principal anG
interest OF $956,0OO, fhile the taxable
value OF all Of the property Id the city
amounted only to $2,412,000 and the
city, was then up to It's constitutions
limit of Indebtedness. The whole
logic in the holding is, that all of the
money that would, from the beginning
TO the end, accrue from such specia
pledge and irrepealable levy could, or
a kind of fiction, be deemed at once II
the treasury, ready to be withdraw
ION warrants. For the opinion says;
\ oR {o1, {e ~