The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-03-04
RONALD AND THE BONDS.


The following is portion of the speech
delivered by Candidate Ronald at Leschi
Park pavilion on Tuesday night:
The contract which this city entered into with
Harris g. Co. by which they agreed to take this
issue of sl,000,oOo worth of bonds for water
works, was binding between the company and
the city of Seattle. But after Harris d Co. had
taken $4,000 of this issue and had advanced to
the city of Seattle s450,0)o leaving a balance of
$4,000, they called meeting of the city coun-
ell and notified them that their wastefuness
and extravaganza and lack OF all business
principles was running tho credit of this city.
and they felt themselves absolved from their
contract with the city. In this dilemma the
city council referred the matter to the Chamber
of Commerce, and they referred it to a commit
tee. Two OF them had been judges in this terri
tory. one of them for twelve years, and they
gave it as their opinion that the city
OF Seattle had been so reckless and ex-
trayagant that there good cause for Harris
& Co. TO thus arbitrarily absolvs their contract
Harris & &c. refused 70 take any more of this
issue OF bonds, leaving us with a lot of iron
pipe still on the wharf, part of it unloaded from
the ship. They refused to take any more unless
this city would issue $50 more bonds to pay for
$4,000 of Indebtedness. And thus it was that
the municipal authorities OF Seattle without
submitting the matter to competition among the
brokers of the money markets OF this country,
secretly issued those bonds to Harris & Co. for
92ls cents.
This story, told with every appearance
of perfect truthfulness by Mr.. Ronald, is
on par with his other statements-state-
ments made by the man who desires to be
entrusted with the city's business inter-
ests
In the first place there was nothing
secret about the matter. The Posr-INrE1-
LIGENcER, on March 81. 1891, published an
article nearly a column long, explaining
the condition, and afterwards published
reports of the proceedings which followed.
The city proposed, in March, 1891, in
order TO save interest, to fund the floating
Indebtedness TO the amount of 1851, 900.
being as much of the old Indebtedness as
the law then allowed to be funded The
following extract from the proceedings of
the city council, on March 81, 1891, gives n
very truthful account of the matter. Mr..
Z, O. Graves, the gentleman who ex-
planned the negotiations, is prominent
Democrat, was formerly superintendent
of the bureau Of engraving at Washington
City, and is now presid Mt of the Wash
ington National bank of Seattle.
A meeting was held Yesterday. at the call Of
Mayor White, Of the aldermen and delegates. to.
gether with Il COMMITTEES OF the Clearlng -House
Association, 20 consider informally the pronosi-
ton made by Harris & Co. to the city with re-
gard 20 The proposed new issue OF bonds 10 fuud
the floating indebtedness
Ci,y Clerk Miller read & communication from
the Clearing House Association recommending
in general terms the acceptance OF the PROPOSE
ton of \. W. Harris & Co, which has already
been published III the observation-disclosures. he
then read the ordinance prepared in order 10
cover the points presented.
Mr. Graves explained that the Clearing House
Association had gone over the ground at the re-
Ques: of the mayor. Il hsd been done with
great care, in order that council might De in
formed lust what the proposition involved The
long ordinance Just resd presented very simple
propositions, al. the rest was merely lawyers
verelsge for the purpose OF arriving at the in
tention The contention of Harris < Co. is that
they have been embarrassed in the sale OF the 5
per cent by the proposition to float q 6 per cent
bond. and by the newspaper talk shout tue
rate at which the floating debt was increasing.
There was no doubt that the bonds could he
better marketed If they were su in the same
hands The only question 10 consider was
whether the city could get as good price under
the terms proposed IS by throwing the bonds
open 10 competition he had no hesitation in
saying that the eity's interests would ea lie