The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1881-02-04
PROcEEDrN0s OF CRY cOuNcIL
tAtfon TO the Refunding of the
Bonded IndebtedneSs OF
the City

Report Of the Special Committee In Re-
iAttcn g the Kefunding Of the
the City.
Legal Opinion as to the Validity Of
some of the Bonds, sc
CoUscIL CHAMBERS. Jan. "a, 1881.
Regular meeting OF the city council
Present. Mayor Gilmore and Messrs.
Fox, Lewis, Thatcher, Whittlesey, Theis
and Watson.
Communication from superintendent
Of water works in relation TO extension Of
water main on Tenth avenue to West
street, referred 10 committee on water
works.
Report of street commissioner in rela-
ton 10 sidewalk tax on lot Is CONNER
ciAl street, laid on the table
Committee on water works made the
following report:
The committee on water works, to
whom was referred The bill for printing
briefs in the Soden case, report thai
they gave no authority for such printing,
and refer il back to the council for their
action, and offer the following resolu-
.
Res0IcSd, That the bill for printing
brief in the SOden case be allowed
y. WHITTLEsEY.
]. W. THATCHER.
On motion of Mr. Fox, the bill and
report was referred to the city attorney
with instructions to report in writing at
next meeting, whether the city is liable
or not
Mr.. Fox of special committee in rela-
ton to refunding of bonded indebted
ness of city made the following report
Your committee appointed to investi-
gate the matter OF refunding the bonded
| Indebtedness of the city of Emporia,
Kansas, would submit the following re-
port:
We find outstanding 3onds as follows
| $4,000 Normal School boarding house
bond, due September 1st, 1880, drawing
| 10 per cent interest; $4,000 Cottonwood
bottom improvement bond, due October
l, 1880, drawing 10 per cent interest
| $75795 funding scrip bonds, due at diff
! ferent dates in 1881, drawing 10 per
cent. interest; $6,450 funding scrip
| bonds, due November 10, 1881,
! drawing 10 per cent. interest.
| $4,000 Normal school building bonds,
due November 25, 1892, drawing 10 per
cent. interest; $4,000 fire apparatus
bonds, due June l, 1888, drawing 10 per
cent. interest; Sd, 900 coal hole or mining
bonds, due July i, 1883, drawing 10 per
cent interest; S. 800 Normal school build.
ing bonds, due April 1, 1880, drawing Z
per cent. interest; $4,000 water works
bonds, due January l, 1900, drawing Z
per cent. interest: $4,000 water works
bonds, due September /, 1890, drawing
Z per cent. interest.
Your committee, after a very
careful investigation of the matter
are led to believe that $21, 300
of our bonded Indebtedness is
what might be termed an illegal debt
namely, $1,000, Normal school boarding
house bonds; $4,000, Normal building
bonds; $500, Normal building bonds
IcAich acer0 issued Seith0ut authority O
Ld,c. See written opinion of G. n. Sler
ry, late city attorney, herewith annexed
Your committee have been somewhat in
doubt as to the right the city council
might have in changing the LegdE form
of debt, viz. making an ilLegdt debt 6
legal debt but have concluded as fol
lows:
1st. The city has received value in full
for all she anticipated OF expected fro n
the issue of the bonds.
End. We find that large portion OF
these bonds are held by innocen. pur
chasTs, one lady writing to our city
treasurer that-for the Normal schoo
boarding house bonds she paid $1.05.
Sd. That while we are of the opinion
that the city has no moral right to re
pudiate these illegal bonds, we believe
the city is entitled to the lowest rate o
interest on legal refunding bond will
which these bonds are taken up, an(
would, therefore, recommend that thu
$4,000 Normal school boarding house
bonds, due September LIST, 1880, be re
funded, with four per cent interes
bond running 10 years from Septembe
1st, 1880. That the $4,000 Cottonwood
bottom improvement bonds due Octo
Der LIST, 1880 be refunded with q five pc
cent interest bond running 10 year
from October LIST, 1880. That the $40,
600 Normal school building bonds du
November 25, 1920, and the $500
due April LIST, 1889, be refunded
to the Kansas state legislatur
now in session, with request that tn
state assume these bonds which were is
sued to aid the state in the erection o
one of her public school buildings, ant
that q committee of two from this cour
Gil be appointed to confer with our REP
resentative and senator, urging them t
bring this matter before the legislator
at an early day.
Your committee would further recon-
mend that the $6,45O funding scri]
bonds, due Nov, 10, 1881, be refunds
/ with per cent. interest bonds, runnin
ten years from date of issue. Also tn
$4,000 fire apparatus bonds, due June
1883, and the $1,000 coal hole mInin
, bonds FUNDED scrip, due July 1, 1873;
be refunded with 5 per cent. interes
bonds, running twelve years from Jun
l, 1881, and twelve years from July
1881, respectively.
Respectfully submitted,
D D. s s. G G2hnonn, Committee,
The following is q copy OF the write
, opinion referred to:
The $4,000 bonds, due September
1880, which were issued to build I'll
+ Normal school boarding houses, vel
}. issued without authority of law, and al
: void, unless they are in the hands of il
nocent holders and recite upon their faG
: facts which would show, if true, tn:
}, they were issued for some other purpos
under law authorizing bonds TO be
sued for such purpose as is recited. I'll
same may be said in relation to ii
$1,000 issued October l, 1871, due Oct
r Der 1, 1880, for the improvement of Co
e tonwood bottom. The same may be sal
A of the $1,000 issued July 1, 1873, du
July 1, 1888, issued for mining pu
poses. The same may be said
+ the $500 issued April
l. 1879 for the Normal The same may
!, said of the $500 issued to Burgan
Holmes
l. If these bonds or any of them sho
# the purpose for which they were issue
n on their face, they are void in wha
a ever hands they may be, but If on IL
contrary they show on their face tn
Is they were issued for any valid purpo
y which could legally authorize the eli
d to issue such bonds, and they are with
or have passed through the hands
parties, who were innocent Of ar
:, knowledge OF the real facts, they a
II valid.
Il T. 5000 sA,s H. -avoxS