The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-07-16
BONDS AND THEIR COUPONS
The lnstallment System of Paying for
Street improvements Explained.
Change In the Form Of Contracts for Paving
"A Plan Adopted to Determine the Pur-
iiy of the Citys Water Supply.
NEUTRALITY-SUSPICIOUS. COUPONS.

Change the Charter Methods Amy More.
City Attorney Bailey Yesterday delivered
an opinion TO Controller Woollen, in reply
TO the following questions: 10 whom are
sireet-imprOyement bonds TO issue or be
made pay able. and by whom is this deter
minedT "HOw aud by whom IS the rate of
interest fixedf' and When shall the in
stsllments and interest thereon of said
bonds be made payabiei" The city attorney
replied that to the first question. the
matter of whom the bonds shall be made
payable TO is settled by the Board of Pub
lie Works in its declaratOry resolution. On
this point he calls attention to the language
of Section 81 of the charter, which provides
that said board may provide in its orig
insl resolution of improvement for the
issue of such bonds directly to the con-
tractor. IN which case il shall be the duty
of the department of finance. upon the al
lowance of the final estimate by the Board
of Public Works. to issue the same directly
to the contractor" The rate Of interest is
likewise fixed by the Board of Public
Works in Its original Improvement resolu-
ton, in accordance with Section 20 of the
charter. providing that interest not ex-
cceding per cent. shall be specified by the
board In the resolution for improvements.
and shall commence from the date of the
allowance of the final estimate.
Relative to the third question, the city
attorney said that there are two initial
dates at which bonds and the interest shall
be made payable. i. In all cases where
the final estimate falls between Oct. L
and March IS. the first instaIlment of 10
per cent. of the principal or assessment.
with interest, will be due on or before the
third Monday of April following 2. In all
eases where the final estimate falls be-
tween the 18th of March and the 1st of
October. the first installment OF ~ per cent.
est, will be due and payable on the first
Monday III November following. The next
payment will be for six months, interest
mo principally, but payable, in the one in
stance, on the first Monday in November
following. aud in the other on the third
Monday in April following. The third
payment will consist of the second 10 per
cent. OF the principal or assessment. with
interest, for six months and, IN the first in
STANCE. payable on the third Monday In
April. inst one " ear from the first pay ment,
and In the other on the first Monday in No
vember, just one year from the iirst pay
ment, and 30 on until all Is paid.
MIR. Bailey continues, evidently in refer
himself and Mr.. Wooilen: Il have OBJ
served the difference in the length of the
periods on which the interest coupons fall
due. and find that the length of tins In
days from the third Monday in April to the
first Monday In November is l97. and that
the length of time from the first Monday in
November TO the third Monday in April is
16s days. 1t is probably true that the per-
son drafting the law did not make this
computation of time. but took it for
tad In fhxxA axxa fne fha
meDt of taxes coming on the third Monday
in April ana the first Monday in November
were just six months apart. Notwith-
standing the discrepancy. or differences. in
attention to the convenience of pay
ing these interest coupons flor
it will be observed that the payments of
the principal are in each case just one year
apartl at the same time that taxes are paid,
and il may be that this consideration con-
trolled in fixing these dates for their pay
ment. lou will observe, also. by the ex-
press terms of the statute, that these inter
est coupons are for Just six months interest
in each case. but that the property owner
for one half of the year has only q little
over five months and half in which to pay
his interest coupon. and IN the other half
year he has little over six months and a
half within which 20 pay IL. SO, that while
the time is little shorter for one part,
like amount of latitude In time is given as
to the other. The same inequality exists as
to the payment of taxes. This fact can
in no wise affect the amount of interest or
the right of the bOndhOlder to collect the
same"
Apparently Mr. Woollen has had it in
mind to again override the charter, as was
done in the dog license payments for CON
venience, for MT. Bailey further says:
After careful consideration of the sub
ject and close perusal of the statute it
self. it is quite clear that the dates upon
which the coupons become due and pay
able are fixed, and would regard any eff
fort To change them as dangerous. Just
six months from the third Monday in April,
1890 the 21st), would bring us mp to Oct.
81 of that year, the date at which, at first
glance. one might consider that the inter-
est coupon was due. but the statute ex-
pressly says it shall DO pay able nc the date
for the general payment of taxes. which
would be on the first Monday in November
and any effort in cOurt to forco the pay
meDt before that date. in my Judgment
would be futile. (See Sections 76
and 49, can sec no confu-
sion or trouble arising ont of this
provision but do see some wisdom In il.
terest, and the property-owner does not pay
one days interest too much. and he pays
just six months interest at each payment
and no more. would not attempt to use
the day of the month IN fixing the time of
coupon payments, but / would describe
such periods. rs does the statute, by the
words. third Monday in April and first
Monday in November The provisions of
Sections 60 and 7S of the charter, which
tirely constitutional expression of legisla-
tive authority, and entirely simple and just
In their operation"