Show VALIDITY TEST I OF EMERGENCY LOANS SPEEDED Santaquin Files Demurrer in inAction inAction I II I Action to Balk U. U S. S Loan for Waterworks The city of Santaquin Wednesday filed Tiled its iii demurrer in in the case brought before the state supreme court last week to test the constitutionality of the Granger bill and the right of numerous numerous nu nu- nu Utah cities to share in federal fed fed- eral oral public w works funds available for lor waterworks and other projects The demurrer asks dismissal of the alternative writ of prohibition granted grant grant- ed by the court September 15 which enjoined the city from proceeding with a proposed bond issue to issue to secure a public works loan for lor waterworks improvements The Th petition of W. W J. J Wadsworth and Jesse Holladay Santaquin t taxpayers taxpayers tax tax- x payers opposing the bond Issue does not state facts sufficient to constitute a cause of action and the writ should not be made permanent the demurrer sta states VALIDITY TEST rEST The case marks maries the first test of the validity of any of the emergency legislation leg leg- passed during the second specIal special ape ape- cial session and upon the courts court's decision decision de do- hinges the fate of oC scores of ot proposed proposed pro pro- posed municipal public works in Utah totaling more than The Granger bill seeking to provide provIde provide pro pro- vide a a means whereby Utah mu mu- could participate in the public works program exempts loans for such projects from the constitutional limitation of bonded indebtedness indebted Indebted- ness for municipalities of the state In other words bonds could be issued issued is is- sued by the cities to secure federal loans without the obligation being classed as a part of the bonded edness The Granger bill also set up means whereby the revenue from waterworks wa wa- could be segregated to amor amor- tire the bonds and pay off oft the debt to the federal government The taxpayers' taxpayers petition however classes such procedure as and nd attacks the proposed bond Issue on numerous other legal grounds BRIEFS NECESSARY Upon the speed with which briefs are filed by both sides will depend an early decision in the case it was indicated when Chief Justice D. D N N N. advised attorneys that the case will not be set for hearing until all briefs are are arc before the court This action will be forthcoming 1 It was indicated within 10 days Meanwhile briefs briefs' were filed tiled Wednesday Wednesday Wed Wed- by friends of the court who have intervened in behalf of Ogden ot a in the Ogden water case similar in many respects es b to the Santaquin case In that action the court held Ogden could not legally issue issue bonds bonds paid ou of water system revenue to secure a R R. F. F C. C Cloan loa loan for I 1 |