The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-30
W0OLLEN NOT HEARD FROM
Much Anxiety in the Municipal Offices
About the City Bond Deal.
Looks as Though That Legal Blunder in the
Issue May Prove Costly TO the City
Improvement Resolutions.

No word has been received from Controller
Woollen, who went to New York to close
up the deal for the sale of the oity's bonds.
aud, while 1t Is not expressed. there is con-
siderable anxiety felt by the city officials
as to the outcome of his visit The rumors
that Coffin * Stanton. the firm which bid
on the BONDS and which secured them. was
endeavoring to get out of taking them on
q legal technicallty have been widespread,
and there lie no little speculation about the
result. The point which is raised by this
firm, that the city has now no right to re-
fund the 81. 600 of Sellers farm bonds after
they have once been paid by
the treasurer. and for that reason
the whole issue is illegal. is con.
sidered by many to be well taken. On the
other hand there are those who think that
it is trick to avoid just obligation.
However it may be. the situation seems to
be clouded in doubt. and until word is re-
ceived from Mr.. .Woollen there will be
more or less perturbation over she sItua.
ton. Mr.. Woollen arrived In New YORK
late Wednesday night and was probably in
consultation with tho bankers yesterday.
What the result will be will probably he
known to-day. prominent attorney, and
one who has had considerable experience
In the affairs of the city spoke about the
situation yesterday. lie said:
IL hardly like to express an off-band
opinion without having looked carefully
into the matter, but it would seem from
what have heard and read about lt that.
should this firm want to get ont of it's con.
tract, it has very good chance to do so.
The question Is. the city having once paid
the Sellers farm bonds, can 1t seek 10 re-
fund them four months afterward, or two
days afterward? / should hardly think so.
The coarse for the city TO have pursued, IL
being in need of the money. would have
been To have made q temporary loan for
the amount needed and not sought to re-
fund these bonds. That would be the law
In the case as near as l can Judge. Still
any firm desiring to purchase the bonds
would take no cognizance. of that
fact. as it would not injure the
rest of the issue. unless it desired.
as in this case. to make IL
loophole out of which to escape. 1t will
make very good ioophOle. too. Should
such q thing occur as the firm refusing to
take the bonds it would undoubtedly in
jure the credit of the city to a certain eX-
tent. 1t ought not to do so. but 10 will 1t
will get noised about in financial circles
that Indianapolis has faiied 60 meet
certain of her obligations. and the reason
of this failure will not reach nearly as far
as will the failure itself. There wouid be
no immediate danger of bankruptcy or any
thing of that ssrt, for undoubtedly the city
COulu 80 arrange ~ Will buO picbCub uolu"
ers of the bonds to allow the time to run
over for a few months. paying the interest
In advance, and so tide over the emergency.
The present is all right, but it is the future
credit of the city which will be injured by
this blunder, if there is one"
President Frenzel. of the Merchants'
Bank and the Indiana Trust Company. was
asked his opinion on the matter, and re-
piled that he had given it no thought. Il
think it would be very serious thing" he
said. for any person to impute such mo-
tlves to so reputable o firm as Coffin ~
Stanton. 1t may be that money IS very
tight now; it undoubtedly Is, and it may
be that that firm might place that belong
ing to Is at q better advantage. but that it
VIII do so Is another thing. i really know
nothing about it, and would not like TO eX-
press my self on it,"
Mayor Sullivan was asked yesterday il
he had received any message from the con-
troller as to the situation in New YORK,
and replied that he had not.
Petition for ThorntOn's Reinstatement.
The petition asking for the reinstate-
ment of Ben Thornton, who was reduced
to the ranks from the detective force. has
been placed in the hands OF Mayor Sulli-
van. and he will present it IN person to the
Board of Public Safety. The petition was
gotten up by Councilman Puryear. and
when he went with it to the Mayor for his
signature the latter agreed to do as stated.
1t means that Thornton will probably be