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Council Wants To Issue Bonds

Council Wants To Issue Bonds image
Parent Issue
Day
6
Month
February
Year
1903
Copyright
Public Domain
OCR Text

The eounctl, Monday evesnlng, directed City Attorney fcsawyer to secure such ajnendmente to the biH before the legislature bonding the city for $40,000 that it should read $25,000. This was rtone on resolution of Mr. Hamilton. The city attorney was ilso instrueted to put the word "no" before "other ' purposes." Aid. Clancy suggested that the people might not want to pay this debt. Aid. Hamilton said every eitizen he had met tol(i him if they knew what the debt was they wonkt be willing lo pay it. The eity had paid $15,000 for floods in the city.. [The Argus will'tal on to show iu a few days that this figure is entiro!y too high.] The people know what the bill is now. The banks won't alio have any overdraft ' bumacher- I wou ld like to ilution büt I ean't. The people don't want it. The? voted down a propositíon to rai s montas ago. He thought the s would lo tickled to deatb I the city. Aid. Hamiltoii repeated that tho tid they would not take care of overdrafts. Mr. Sawyer liere int in an iinpassioued lawyer's plea. He said that the banks had agreed on the flrst of .Tanuary not to earry an overtlraft. ïle only way to créate this indebtedness was to viólate the luw. The overdrafts had been created fot works not provided for in the charter. The banks have hitlierto boen willlng to advance tliis inoney. Thelr offer lias usually been to pr.y 2 per cent on daily balances and to charge frorn 4 to 6 per cent on ovordrafts. In the present bid thei-o is nothing about overdrafts. The'o anks waited before iviug tlns notice until money liad oome into tlie treasury and balancea the overdrafts. A great and most scrious calamity came upon the city last Tuly which has cost from .$12,000 to $15,000. Electric iights and water eontracts must be cared for. You are paying largo amounts to la boring men. You must furnish them vork. The charter allovs a second class of orders which may bc drawn aftor funds are exhausted payable February 1 next. [Note- This is 1lio only class of orders or warrants the city has issued in the past 10 years, as f ar back as our personal knowledge exteuds.- 1M. Aigus.] This order will not f eed a man's family. Bnt there is another and more serious roason why you should boud. This indebtodness was iucurred for work not authorized by tho charter. If you don-t bond for it and wlpe it out anybody can prevent your collecting tlio city taxes noxt sunmier for you cau't collect money to speurt for an Ilegal purpose. [It is li.-u-dly necessary for thé Argus to state that this latter argument of Mr. Snw.ver is the weakest one ever given. In the firsi place anything that would be Illegal to raise taxes for would be illegal to issue bonds for. In the second place tlio storm sewers tow hieh Mr. Sawyer. refera were paid for years ago. In the thirc place tbc conncil bas .-i rlghi to levj a certain amount of taxes to be divided among certain funds and no :ourt will assume that the counci] intends to expend this tax levy foi illlegal' purposes.] Aid. Schlenker thought it had boen wrong to créate this indebtedness but he didn't know any otber way to pay for it than this. All Ue was afrald of was that in five or six years there will be another overdraft What gnarantee would we have that this will uot re-occur. Mr. Sawyer sald there was not a dollar of steal in this overdraft. Aid. Schumacher said Mr. Sawyer didn't want tho lectric lights tunied off. If the electric lights would only be turned on he might vote for the bilí. Aid. Coon said as he understood it unless the eounci! took sonie action all work will have to stop. We have had to stretch a point to pay last summer's bilis. [If the noint will stretch for onc montli wliy not for a nother.- Ed.] Aid. Claney said he was as 'imu-li In favor of paying labor as any man here. If the banks would not advance the inoney as hithcrto there were individuals who would. We have done business for the last 40 years under the same system. He was in favor of letting the people vote on the bonding proposition. The resolutkui pJaelng the bouds at .$25,000, payable $2,500 a year was passed by 10 yeas, 2 nays as follows: Yeas- Aid. Hamilton, Douglae, Schlenker, Kearns, Johnson, Roberts, Grose, Coon, Fischer, Pies. liuirer- 10. Nays- Aid. Clancy, Schumacher