The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-03-24
DISPOSAL OF BONDS.
Informal Discussion Of Harris 4
Co.'s Proposition.
MEMBERS OF rns COUNCIL.


Delegates 20 Coosider the Fro
posed Ordisancs.
A meeting was held yesterday, at the call
Of Mayor White, Of the aldermen and del
egates, together with committee Of the
Clearinghouse Association, 70 consider i'm
formally the proposition made by Harris
Il Co. TO the city with regard 70 the pro-
posed new issue Of bonds to fund the float
ing indebtedness.
Mayor White occupied the chair. and
there were present Nessrs. Jacob Furth,
z. o. Graves, II. ". Wheeler, Aldermen
Miller, Pontius, Hall, Korn. Snyder, Del
egates Hanford, Shipley, Willis. Cowden
KruS. Muldoon. Kittinger, Morford and
Bagley.
City Clerk Miller read Communication
from the Clearinghouse Association rec
ommending in general terms the accept
ance of the proposition of y. w. Harris
4 Co.. which has already been published
in the PosT-INrKLLasEycER. He then read
the points presented.
Mr.. Willis confessed his inability to
understand 50 complicated document
from one hurried reading.
Mr.. Miller moved that the whole matter
be referred to the finance committee of
both houses to report to the council next
Monday.
The mayor said this meeting was only
for conference, it had no power to make
an arrangement for the council.
Mr.. Graves explained that the Clearing
house Association had gone over the
ground at the. request Of the mayor. 1t
had been done with great care in order
that council might be informed just what
the proposition involved. The long ordi-
nance just read presented very simple
propositions. all the rest was merely
lawyers verbiage for the purpose Of ar
irving at the intention. The contention of
Harris & Co. is that they have been en-
barrassed in the sale of the per cent.
by the proposition to float per cent.
bond, and by the newspaper talk about the
rate at which the floating debt was In
creasing. There was no doubt that the
bonds could be better marketed if they
were all in the same hands. The only
question to consider was whether the city
could get as good price under the terms
proposed as by throwing the bonds open
to competition. He had no hesitation in
saying that the city's interests would on
the whole be better served this way. He
discussed the probable outcome of law
suit if the city refused to accede to Harris
T. Co.'S terms. He explained the differ
ence between the per cents. and 6 per
cents. and why it would be better to issue
a S per cent. bond.
Referring to the conditions, he said the
only actual proviso was that the city
should not issue any more bonds until
November l, which seemed . very reason
able request. The amount Of the water
bonds and those proposed covered a very
large sum, and it would certainly inter-
fere with their sale if within the time
named there should be another issue. He
reminded them that this did not include
bonds for the Rinehart and Yesler corners,
so that the city would not break faith in
any of its contracts.
Mr.. Furth, who was also called to speak,
said Mr.. Graves had fully covered the
question, and there was nothing left to be
said. The mayor had already recon-
mended that the only course for the city
was to fund the floating Indebtedness.
The terms offered were fair, especially con-
sidering the present state of the money
market. He believed that the city ought
TO be well protected in this new contract.
He said that admitting the city would not
make as good bargain by SIX, 900 it would
certainly gain far more by an amicable set
Element, and the promptness with which,
the'large quantity of deprecated warrants
could be redeemed would offset any prob
able loss. After very anxious considera-
ton the Clearinghouse Association almost
-
the proposition.
whether it would be better to issue those
upon 10 per cent. warrants.
In reply to Mr.. shiplcy it was explained
by Mr.. Furth that it would be better for
the city to issue 6 per cent. bond only
because the limit of Indebtedness was so
nearly reached; so far as the city was con-
cerned it was a better proposition, because
it postponed repayment of large amount
to later period.
Mr.. Miller moved and Mr.. Pontius Sec
onded. as test of the sense Of the meet
ing, that it favor adoption of the contract.
Mr.. Muldoon said he was hardly pre-
pared to vote yet; many features of it
were new to him.
Mr.. Willis would like to have week to
think the matter over. The council had
been sufficiently criticised for rushing
matters through.
Mr.. Shipley should object to hasty
action on the matter. The ordinance
could be introduced at once in either
house and be carefully considered.
Mr.. Pontius agreed with this view.
Mr.. Bagley moved that each member be
furnished with copy.
Mr.. Snyder thought 1t would be good
plan to have it introduced into the house
of delegates that night and referred to the
finance committee.
After some general talk as to the course
to be pursued, it was resolved to adopt
Mr.. Snyder's suggestion, and the meeting
adjourned.
At the session of the house Of delegates
in the evening the ordinance was intro
tiuced and referred 10 the finance COM