OCR Text |
Show SHIS CITY III ISSUE OF : SHIES j Supreme Court Decides in I Case of Protest Filed by Dickinson I i Salt Lake City Is empowered to con. I tract a debt for the purpose eet forth In a resolution adopted by" the city I commissioners at a meeting held on f January IT, 1921, "Which -authorises the city to borrow $1,600,000 and pledge I the credit of the city for the payment t of the same and to Issue negotiable , bonds for the amount in denominations f of JSOOO each, the same to bear per cent per annum. ? This Is the opinion of the supreme J eourt of the state In an opinion wrlt- f ten by Justice Valentine Gideon In the I case of H. 8 Dickinson against the city f of Salt Lake. I Mr. Dickinson, a taxpayer of the city. E sought a writ of prohibition prohlblt- ! ing the city from issuing and offering I for sale a bond Issue of the city as set forth In the resolution of the city com- salssleaersi GIVES THE TEXT. The resolution recites: 'That, whereas, there Is an Immediate Imme-diate and pressing need of raising funds to defray contingent expenses, to purchase pur-chase water sources, streams, and th. land upon which streams are appropriated, appropri-ated, and canals, to construct waterworks water-works and supply water for irrigation and other purposes, to open. Improve and repair streets and sidewalks, to construct and maintain bathhouses, to malntsln the public library and reading read-ing roam, to pay Interest on bonds heretofore Issued, and constitute a sinking fund for the payment of the principal on bonds heretofore Issued, to defray current expenses, and for general corporate purposes." FORM OF BONDS. The form of bonds proposed to be Issued was made a part of the petition, and in said bonds it is provided: "The board of commissioners shall levy In the year 121 a sufficient tax to pay the principal and Interest on this bond aa the same shall fall due, and this bond is Issued in anticipation of the payment of such taxes fur the year mi. "It Is hereby certified, recited and de-elared de-elared that the entire Indebtedness of said city hereby Incurred la not In excess ex-cess of the taxes of aald city to be levied for the current year, 121, and that ssld Indebtedness was and la contracted con-tracted for the purposes of which aald taxes are to be levied." FILES DEMURRER. The city filed a general demurrer to the complaint of Mr. Dickinson and the matter, on that etate of the record. Is submitted to the supreme court for determination. de-termination. ' "We conclude," says the opinion, "thst the city can contract the deht for the purposes mentioned In the resolution resolu-tion and pledge for the repayment of the aame the credit of the city and la-sue la-sue negotiable bonds aa evidence of such Indebtedness. That la all that la attempted to be done In this cause by the city. The demurrer admits all of the allegations of the complaint. In-eluding In-eluding the valuation of the taxable property In the year 1920. also the estimated es-timated revenue for the present year and the estimated expenses. The demurrer de-murrer will be sustained and the com-plaint com-plaint dlmissd, at trie cost nf plHlnttff" |