Imperial Valley press., 1913-02-24
CITY ATTORNEY LAREW ON
CONST|TUT|0NALITY OF BONDS

full, courts will examine the proceed
ings Of the constitutional convention
that framed the constitution, with a
view TO ascertaining the meaning.
In examining the proceeding
OF convention it is the intent of the
people through their representatives
That is sought for. Where
to be examined, the history and con-
dition of the times and the evils that
existed, requiring remedies, d.
may be consulted with profit. Eye.
IvOl. 8, u. 40.
Policy and expediency are not to be
| "A construction which must neces-
sarily work great public and private
mischief must never be preferred to a
construction which will work neither
or neither in so great a degree unless
i the terms absolutely require such pre-
ference; and OF two constructions of a
consiitutlonal amendment involving
| questions Of public policy either Of
which is warranted by its terms, that
is. to he preferred which best harmon
ICES the amendment with the general
tenor and spirit of the instrument IS
| eye, 1873, and cases cited.
The provisions of section 81 of ar
ticle Of the constitution above quoted
do not, in express terms, prohibit the
acquisition and holding of the stock of
a corporation by the city The express
language is that the legislature 'shall
not have The power to authorize The
state, or any political subdivision there
| of, to subscribe for stock, or to be-
come a stakeholder in any corpora
| ton" In order TO properly cOnstrue
| that provision. which is a limitation on
the power of the legislature, and to de-
icrmine its true meaning and intent,
| the reason and necessity for such
provision must be considered
Prior to 1879 there We're certain
| abuses in this state and elsewhere in
the nation in the matter of pledging
lcredit to private corporations. We in
, stance The Credit Mobilier." the do
nation to the Central Pacific by this
state referred to in people VS.. PachecO.
21 Cal. 116, and similar matters in
different counties.
Prior to the adoption Of the constitu-
! lion of 1879. the legislature not only
| authorized subscription by the state
and political subdivisions thereof for
stock in private corporations organized
| for profit but even went TO the extent
of enacling legislation compelling such
subscription: and in so doing was up
| held by The supreme court the cOuri
holding, in the case of Napa Valley
Railroad Company vs.. Napa county, 30
| t.dl.. 40. IIldl
"The legislature may compel a coun-
| ty to become a subscriber to a railroad
already built, for the purpose Of paying
its debts, and to become stOckhO older
| therein and issue its bonds for the
stock. and to raise money by taxation
and appropriate it to the payment of the
| bonds
II was manifestly for the purpose
and with the intent of correcting such
abuses as those mentioned above that
section 81 of article of the conslltu-
ton was adopted, as a limitation on
the power of the legislature, prevent
ing it from putting a burden of taxa
ton upon political subdivision with
out the consent of the inhabitants
the people individually or collectively,
not as an inhibition OF the right Of a
city Of the sixth class, by vote Of its
citizens, to acquire and hold the stock
absolutely necessary to obtain the sup
ply of water upon which the very ex-
istence Of the city depends.
| The acquisition of such stock is linn
| tied lin the resolution OF intention
and in the ordinance calling the elec-
| tom to the amount necessary for sup
plying the city and its inhabitants with
water. The necessary" stock is the
stock Of a. mutual water COMPANY
concern organized not for profit but
| merely as a distributing agent, whose
stock serves no other purpose than
| that Of comforting upon the holder
| thereof the the right to demand and
receive water through the mutual COM
pany-the only medium through which
water for domestic and irrigation pur
poses can be obtained in Imperial val
ley. The purchase by the city OF
such stock as is necessary to obtain
its wSter supply is not speculation
or lending of its credit to a private
corporation, but is the mere acquiring
OF right to receive water through the
mutual company as distributing
agent. Without the acquisition of such
right, the cities of Ell Centric, Imperial,
Brawley and CaleXico could not get
water at all, and consequently could not
exist.
If the question as to whether the city
Of FL CentrO a municipal corporation
Of t11e sixth class has a right to ac
one of the mutual water companies III
Imperial valley, giving such city the
right to demand and enforce the de-
livery of water be assumed to depend
upon the construction to be given 20
section 81 of article 4 of the cOnstitu-
tion Of 1879, we respectfully submit i
to be true and correct as a legal prop
osition that the provisions of the con-
StitutiOn should be understood and con-
Strued with reference to the phys'cal
condition Of the country and its history
The same is true Of acts of the legisla-
ture and proceedings of all political
subdivisions of the state.
The condition of Imperial valley
both in 1879 and at the present
time is part of the history of the
state of which courts take judicial no
tice. &C.. C.. p, sec 1875, subdivision
81 AT the time Of the adoption Of the
constitution the present condition of
this valley could not well have been
foreseen. We do not believe that
court taking judicial notice Of such
conditions would so cOnstrue the con-
stiiution as to find in it an intent to
prohibit the municipalities of this val
ley from acquiring and holding The
stock necessary to their existence.
Such matters as providing sewers
and necessary water supply for the in
habitants of city are Of local concern
in which the state has not interest:
such matters ought to be disposed of
in view of the interests of the cOrpor-
atOrs exclusively, and they ought to
have the same right to determine for
themselves which the associates in
private corporations have Ia determine
for themselves the qLHsii rs which
arise for their corporate 3ci0n.
Municipal corporations IN ilcir char
acter as owners and Occupers of land
sewers and water plants are and ought