The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-09-04
JUSTIFICATION FOR THE BOND SALE


Since for reasons best known to them
selves certain influences are diligently at
work in an effort to mislead the public con-
corning the recent sale of water and school
bonds, it may be well to review the facts OF
that transaction and the reasons that
brought it about.
The facts are as follows: The bonds
we're sold to Harris & Co., of Chicago, at
par, with this provision, that $40. 100 should
be paid to Mr.. Halsey, agent OF Harris q
Co., as q commission: and with the fur
Their condition that interest upon the whole
issue should begin at the date the bonds
were authorized to be issued, in July last,
although the money was not actually to be
paid until called for in stipulated sums, as
it should be needed during the next few
months.
As matter of course, the council would
have preferred to have sold the bonds
under more advantageous arrangement,
but there were very important reasons why
the transaction should be closed at once.
1t was felt that the necessity for expansion
Of the water supply, and for development
of the sewer system. was paramount. and
that it would be wiser and in every way
better to take little less money at once
than to take a little more money q few
months ahead. since the delay would in
volve postponement of these very impor-
tant enterprises.
To have postponed the bond sale and to
have called for new election on the ques-
ton of the bond issue. rs was urged, would
have postponed the whole matter at least
three months. This in its turn would
have postponed contamination of the
city's contract with the Spring Hill COM
pany, involving direct loss of $25, 900,
estimated as the net profits of the works
during that period. The cost of the
proposed new election and the in
cidental expenses of getting up
new edition of blank bonds
would have aggregated at least $4,000.
Furthermore. the city is under contract
for the purchase of large quantities of
water pipe, not to be paid for until re-
ceived and tested. but those who have en-
gagged to supply the pipe gave notice that
they would not proceed with their engage
ment unless the money was actually in
hand for their payment.
Another consideration--the city is now
employing large force of workmen
preparatory to work of excavation. For
the payment of this force about 81, 900 per
month is required and since at present
payment is actually made in scrip, bonus
of ten per cent. is required to make up the
difference between the value of this scrip
and actual cash. If this work of prepara-
ton should be postponed until winter and
left to be prosecuted during the wet sea-
son 1t has been estimated that it would
cost from twenty to forty per cent more
than if done during the summer season.
Still another considerations large part
of the city is without sewerage facilities.
The sewage from a considerable section
drains into Lake Union, from which
another considerable section of the city
draws its water supply. 1t was felt that il
was essential to the public health that
there should be large development of the
sewerage system during the present
season.
All these considerations are very i'm
portant, and they combine TO make what
seems to the Posr-ISrELLIGEScER q COM
plete justification of the council in its sale
of the bonds. Tbs sale to Harris & Co..
while it missed the chance of making a
possible better bargain, had many advan-
tages-it promised TO carry out the oft-ex-
pressed wish of the citizens of Seattle for
city control OF the water system; it
promised an immediate extension
OF the water system with q
great advantage of protection against
fire; 1t seemed to secure the prosecution of
work now in progress in our streets upon a
business-like and economical plan, and it
promised the construction OF sewers
requisite for the public health.
There are other advantages relatively of
minor importance, but those named were so
positively related to the public welfare
that it seemed well to make some little
sacrifice to secure them. Only few weeks
ago those who are now most persistent in
criticisms were urging development of the
water system and protection of the city
against fire az any cost.