Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-06-23
DISPUTED BON

An Effort to Adjust n DIniculty Arising from
HerGic's Schemes.
Phla lelphia Press.
In this city yesterday was held meet
ing of the Philadelphia holders of the
WilliamspOrt 6 percent. coupon bonds
known as Series A, which are in de-
fault of interest, and a refunding commit
tee of the councils Of Williamsport, tho
object of which was to effect an adjust
ment of the pending difficulty arising
from tho refusal Of the city Of Will
Transport to pay interest on the
bonds. In 1868 Peter Herdic sue
ceedcd in having two bills passed by the
councils of WilliamspOrt, one to lay three
miles of Nicholson pavement, for which, he
was paid $j.25 per square yard, and the
second ordinance to construct a sewer from
the Susquehanna river to the Herdic
house, the price Of which was SO, 900. 1t
was claimed that these improvements were
almost solely for the benefit of the Herlic
house. Subsequently Peter Herdic took
his seat as mayor of WilliamspOrt, aud in
payment of the contracts the mayor and
treasurer continued the issue OF Il series Of
bonds known rs Series A. of which 5000,
600 had previously been issued to cover a
borough indebtedness. Over S4O0, 900 ad-
ditional was issued over the signatures OF
Mayor Hertlic and the treasurer, Of which
the greater portion was negotiated in this
city by the late G.. =. Peterson, broker. 1t
wa; learned that a12j,OOO had been
issued over and above the sum actually
necessary to pay for the laying Of
the pavement and the construction Of
the sewer, and that the entire issue had
been negotiated without provision therefor
by act of Assembly. Consequently the
councils refused payment of the interest.
Legal proceedings were begun in 1876 to
compel the payment Of the interest, and
Judge Elwell of the Columbia county
court decided that the city must pay it,
which decision was affirmed by the su-
preme court Oh an appeal to that tribunal.
TIC matter hung in litigation until tho
the organization of the present council,
when {. Laruo MunsOn, Of the lower
branch. introduced an ordinance, which be.
came law, providing for tho issue Of TO-
% bonds, with interest at per cent. and
subject to the state tax of mills, in lieu
Of the 6 per cent. bOEds and unpaid inter-
est.
At the meeting yesterday the PhiIa,lel-
phia holders took exception to the idea Of
saildling the new bonds with the state tax,
and especially those which it is proposed
to issue in lieu Of the unpaid interest. Vice
President Gest, Of the Fidelity trust COM
pany, which corporation is custodian Of
about $3.50, 900 of the bonds in default,
stated that, as he understood the Ordin-
ance, if any one bondhOlder withheld
his assent the bill fell, and unless
some proposition was made which
would meet the matter he did not
see how an adjustment could be made. lie
suggested that it would be better to issue
bond at per cent, clear of taxes, Us
Philadelphia does, and let the back inter-
est be paid in cash. The committee
promised to present the matter to coun-
cils, and G. Larue Munson submitted the
following:
eve, the undersigned holders of the
bonds of the city Of Williamsport, known
as series A and overdue coupons thereon.
hereby agrco to accept 4-per cent. 1920
bonds for said bonds known as series A,
provided that the said 4-per cent. bonds
are free from all taxes levied by the state
of Pennsylvania, and that the back inter-
est on said series A is paid in cash."
This was signed by some twenty-five or
thirty people representing s2O7, ,ooO OF the
old bonds, prominent among whom were
Charles Ziegler, $11, 900 !; Charles r. Bow
or AZ GOO: Thomas j. Smith, Sc, 600;
Marv A. Pierson, $4,000 James Simp.
son SEQ, 600; William II. Main. s19,OOO;
Charles ]. Walter. $4,000 Mary Saller,