Glucose Sugar Refining Co. v. City of Marshalltown

Citations

• 153 F. 620
• 1907 U.S. App. LEXIS 5119

Syllabus

<p>1. Contracts — Partial Invalidity — Separation.</p> <p>Where a city, in order to construct a sewerage plant, borrowed $25,000 from complainant to construct the same, and agreed to repay the loan in installments in various ways, a provision of the contract that, in ease after the year 1901 the total taxable value of all complainant’s property should be fixed and kept at a sum not to exceed $5,000, then complainant for each year in addition to other credits would credit on the loan a sum equal to 14 times the taxes on $5,000, or such proportionate amount in case the valuation exceeded $5,000, was separable from the remainder of the contract, and, if invalid, did not invalidate the balance.</p> <p>[Ed. Note. — Divisibility of contracts, see note to Saunders v. Short,-30 C. C. A. 467.]</p> <p>2. Municipal Corporations — Borrowing Money — Sewers—Construction-</p> <p>Powers.</p> <p>A city having express statutory authority to construct sewers as provided by Iowa Code 1897, §§ 791, 794, 796, 810, 820, 831, 841, had power to borrow money for the purpose of constructing a plant for the disposition of the sewage.</p> <p>3. Same — Contracts—Validity—Relief from Taxation.</p> <p>A contract by which complainant agreed to loan defendant city the sum of $25,000 for the construction of a sewerage plant to be repaid by a return of all water rents owing to the city from complainant, together with all taxes due the city on a specified valuation of the company’s property, etc., was not objectionable as relieving complainant from the burden of taxation.</p>