The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-01-17
INTEREST ON SCRIP.
Original Plan Proposed by Mr..
Jacob Furth.
COUPONS ON THE WARRANTS.
Provision Should Be Made for Period
zeal Payment Of Interest ut
Eight Per Cent.

Some time since Mr.. Jacob Furth out
lined plan for floating outstanding city
grade warrants by the enactment Of pro-
vision by the common council providing
for the payment of interest at specified in
tervals until the scrip is called in. Yester-
day movement toward securing the
necessary legislation for carrying out this
scheme was inaugurated IN the form Of
petition 10 the common council, drawn up
by Mr. z. +. Blaine, acting for a number
OF the holders of grade scrip. The petit
ton prays for the passage of an ordinance
providing for the payment of interest at
the legal rate semi-annually on good war
rants. AT present the interest is not COL
lecti5le until the warrant is paid. The
petition is as follows:
We, the undersigned. represent TO your hon
orable body that we are property holders aud
taxpayers in the city OF Seattle: thatwe have
from time TO time received, either from the
city or the contractors performing labor and
furnishing the materials In the Improvement of
the streets OF said city, large amounts of street
Improvement warrants; that said street i'm
rrovement warrants have been taken by us,
either for labor and material furnished rs con-
10 contractors. or Tor money loaned TO conrrac-
tors for the purpose OF completion of street i'm
proyements. that we have been compelled to
hold these warrants for a much longer time
than was con4er-r iated AZ tbe time thsv ,yers
procured; that VIC are informed and believe
that in the years 1859 and 1850 upwards ofseven-
freight streets, or portions thereof, under
separate contracts. have been graded aud that
the amount OF outstanding street improvement
warrants exceeds the SUN OF $4,000; that dur
ing the last three years nearly S75 cases have
been commenced under the direction Of the city
against delinquent property owners, the aggre-
gate amount involved in said suits being only
sl33,6o0, or practically ope-fourth OF the amount
outstanding for street Improvement work
That OF this $ig3 900 only $1,000 have been col
leetcd, leaving unsolicited OF outstanding street
Improvement warrants the sum OF nearly $780,
CO., the collection OF the assessments aggregat-
Ing this vast SUM being apparently contested by
property owners.
money market and report prevalent IN and
about the city that the ordinances under which
the above street improvements have been made
are defective: and questions existing as to the
eonsttutionality OF the law in relation 10
ments, the persons owning property sbutting
upon the streets which have been improved are
neglecting or resisting the payment OF the
amounts assessed
And further. there exist different opinions in
the city OF Seattle as 70 whether interest Is col
lectible upon any OF said warrants, and also as
to what time within which holders thereof are
entitled TO bring actions Tor their enforcement.
Wherefore, we, the undersigned. respectfully
petition your honorable body that an ordinance
be passed BY the city council OF said city proyid-
ing for tae payment of interest upon said war
rants al tne legal rate Interest payayabie every
six months.
Il am glad this matter is being agitated."
said Mr.. Furth last evening TO reporter
of the PosT-IyTELLIGEScER. by issuing
these warrants in the form of bonds in de-
nominations of 500, $500 or $1,000, with
interest coupons attached, so that the non
resident holder can collect his interest
annually or seini-annualIy by simply tear
ing OF the coupons and forwarding them
To the city treasurer, will in my opinion
make them salable in the East at per
cent interest which will be saving TO
the city OF per cent. annually. Some
years ago number of warrants were issued
with an interest clause providing for the
payment OF the interest at fixed periods.
These found a more ready sale in the local
market, but failed to secure Eastern
buyers. In this form the nonresident
holder IN order to collect his interest if he
does not present his warrant to the city
treasurer in person must part with it for a
time. either sending il by mail at the risk
OF being lost. or forward il by express each
time, which is expensive. Until something
more convenient is devised this indebted
ness must be held here where interest rates
are high, and as a result there is $4,000
Withdrawn from circulation here. creating
certain degree of money stringency."
Under the proposed scheme the money
that comes in viii be expended first in pay
ing the interest on all the warrants semi
annually and then redeenling as many
warrants as possible with what remains