Arizona republican., 1921-04-30
HOLDS COUNTY CAN'T ISSUE BONDS TO HELP
 BUILD CEMENT PLANT

That the county of Maricopa can not issue S300,0O0 in bonds to aid in the erection of $600,000 plant in Phoenix to make Portland cement, as proposed in a plan presented to the board of supervisors last Monday by Aman Moore of Los Angeles and committee from the chamber of con- merce, was the opinion of J. .. TOT est assistant county attorney. gwen to the board yesterday. MT. Forest states that in his opinion house bill No. 11S, passed by the last legisia- ture is wholly invalid and does not give the supervisors the power to au- thorize a bond issue for private pur- poses.
 The opinion of Mir. Forest in part IS as follows:
 "If the legislature. under this act, has authorized the imposition of a tax | for private purposes, the act under all of the authorities is unconstitu- tional and therefore void: because under our system of government tax ation can be laid only for public purpose.
 l Sections 1 and 6, both inclusive, Of this act provide that the boards Of supervisors on their own volition and upon petition of 15 per cent of the property taxpayers, shall call an elec- tion to determine whether the bonds l of said county shall be issued and sold for the purpose of constructing, installing and operating an industrial plant for the manufacture of materi- als or commodities for use in the con- struction of public highways. It will be noted that section ! of the act provides that the county is authorized to sell the cement for commercial purposes. the only .imiy being the price of the article. The California courts held under similar case that the manufacture and sale lof cement for commercial purposes was not work of a public or municipal character.
 Attorney Forest cites the opinions of the California supreme court upon an act similar to the Arizona act, ard Istates:
 "In the California case referred to, and in many other states, and the su- preme court of the United States. the principle is we'll established that pub lie funds derived by taxation can be used only for governmental purposes, and such business purposes as the Iconduct of public utilities. and never for the establishment or maintenance of a business or industry which might
 be engaged in by private parties, and the act under consideration clearly land designedly authorizes taxation for private purpose. That because lof the provisions of section of the fact, I am of the opinion that the act
 is wholly invalid and that the beard
 of supervisors of Maricopa county or
 any other county have not authority Tor right under this act to take any
 steps whatever. either of their owr lvolition or upon petition, to call 2
 bond election for the purpose of rais- ing funds to construct, maintain and
 operate Portland cement plant"
 Mir Moore and the committee pro- posed to the board that it authorize
 the issuance of $S00,00 in bonds fol
 the erection of the plant, the amount
 to be repaid to the county in cement at price not to exceed 50 cents 2
 barrel over the cost of production
 and after that the same price would
 hold for the next 99 years. The board will notify MT. Moore and the com.
 mittee that it cannot enter the pro. posed plan.