The herald., 1895-05-29
THE TRIP WAS SUCCESSFUL
City Attorney Dunn is Home
From New York
JUDGE DILLON'S OPINION
lie Thinks the Act of Last March Is
Unconstitutional
Street, Wykes & Co. Are Believed to Haze
Hidden Behind the Law-Anxious to
JUDGE DILLON'S OPINION
Street, Wykes & Co. Are Believed to Haze
Hidden Behind the Law-Anxious to
Escape From Their Bargain

CITY Attorney William Dunn arrived
home from New York City yesterday
morning after having made the round
trlp from Los Angeles in the short time
OF thirteen days.
The city attorney brought with MN
news of a character which made the face
of every official about the city hall, from
President Teed of the council down to
the janitors OF the CITY hall, wreath III
smiles. Dunn's trip was, in the opinion
of every member of the city admin stra-
tion entirely, successful. To Herald re-
porter the city attorney SAID;
Judge Dillon has carefully examined
the school bonds of $685. 900, proposed to
be issued. and has given us fIst-class,
unqualified opinion. finding them legal,
valid obligations of the city. He has
made the same examination relative 10
the bonds proposed to be issued for head
works and police station, and has given a
similar opinion upon these bonds.
In the matter Of the refunding bonds,
Story & 'Thorndyke have given an opin
ion to the effect that the city has no
right under the constitution to refund
and extend its old Indebtedness. these
attorneys are very prominent authorities
upon MUNICIPAL bond questions and their
opinion has much weight. especially IN
new Engldnu. JuuEc DllIOu uoeo ioe
agree with Story & Thorndyke upon the
questions raised by them. and is OF the
opinion that the bonds are good. He ad-
vlscs, however, that in view OF the black
eye given the bonds by the opinion OF
Story d Thorndyke, and in Wow OF the
fact that prominent attorneys disagree
upon the question. that the matter be
submitted to the supreme court tor de-
termination. Judge Dillon is of the opin-
ION that the statute passed by the late
legislature which SO seriously hampers
the sale of bonds is unconstitutional.
AS have said befoer. | have procured
the opinion of Judge Dillon upon all
these bond issues and the opinion OF Story
Il Thorndyke upon the refundlng issue.
These opinions will lie enclosed with my
report to the city council.
| regard the opinions obtained upon
the school bonus and upon the headworks
and police station bonds as possibly the
most important features of my mission
TO New York. Our credit had been dam
aged to considerable extent by the ad
verse report of Story Il Thorndyke upon
the refunding bonds and is restored as
to our new issues by the opinions pro-
cured of Judge Dillon, as lie is by long
odds the most eminent authority on mu-
nclpal securities in the United States,
for an issue OF bonds already approved
by him will sell in any market at first
class prices without delay.
| am glad to be able to say that none of
the questions raised regarding the valid
ity OF the refunding bonds result from
any act of the present city government.
nor could they have been foreseen or
avoided by this administration. The
question is simply whether or not under
our constitution municipality can re-
fund. an outstanding bonded indebted
ness and thereby extend the time OF pay
ment thereof beyond the constitutional
limit IS it existed at the time the debt
was originally created.
The city att rney was in New York
City not more than three days. His trip
home occupied four days and seventeen
hours. He struck ll2 degrees Fahrenheit
one day out OF Los Angeles while il Ari-
zona going east and the day following en-
countered fearful snow storm in Colo
RADIO.
The trip will cost the city S225, while
Judge Dillon's fee for his opinions will
be in the neighborhood of $1,000. The
latter compiimented the city attorney
very highly for the excellent shape OF
the various documents in the different
bond issues saying that they were among
the best prepared which had ever come
under his observation.
Judge Dillon is general counsel for all of
the Gould interests. and is the best mu-
niclpal law practitioner in the United
States. His income from his profession
is over $3.50 600 year.
The city attorney will make an official
report OF his trip and what was accom-
pllshed to the council tomorrow morning.
The opinion is general about the city
hall that Street, Wykes & Co. of New
York. believing that they had paid TOO
much for the refundng bonds, deliberate
ly took advantage of the unconstitutional
new law of March last for the purpose OF
being able 10 back out of their partially
agreed bargain. The bonds will be read
vertised for and offers nearly if not as
good as brought before are again expected.