Salt Lake Telegram | 1935-09-07 | Page 5 | State to Test Debt Cut Right

ATE TO TEST GUT CUT RI RIGHT HY 1 question of whether the state stater compromise a debt when the r expressly prohibits the II tram train so o doing was recd reed re- re td cd ed to the state supreme court courtl in iii a a. suit filed by Attorney Joseph ph Chez z against the dh h h industrial commission gal observers termed the acas acas acas ac- ac as of statewide Importance jie court granted the attorney STeral eral a temporary writ rest restrain restrain- aln- aln g the industrial industrIa commission from pUng from the city of ScipIo illard Jard rd county an offer to redeem water- water OO worth of oC municipal irks bonds held by the state for foris forI is I than the principal and interest e. e The he case was wa-s flied filed by Deputy At- At General S. S D. D Huffaker who d d section netlon 27 of 6 of the te ite constitution prohibiting the from releasing In whole Pin In part the indebtedness of any person or r municipal t to the state If the legislature is denied this ht Mr Huffaker contended a ato ato ato to dep department cr created by the also Is subject to this institutional prohibition Seven 1000 bonds Issued by the ty on June 1 1925 and bearing 6 involved InC Ine in inte sr c cent interest are te e C case One bond fell due on June 1 1934 nd a second Ju June e I 1 1935 They were it t redeemed the attorney general the tho court A total of ot In interest on onie ie seven bonds also Is due and un- un aid Id he said J The he industrial commission pro- pro oses to accept the city's offer of in return for a release of Its Us tal ital obligation to the state under pie e C bonds The court ordered the commis- commis lon to show cause October 14 wh why t should not be restrained permanently perma perma- from completing the trans trans- action II The courts court's opinion is expected ettIe t the e question of whether a tate department has the right to tolo lo an obligation to the Kate tate nate t I