The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-07-01
Decision arrived at by the Com
missioners Yesterday.
ISSUE WILL BE $35o,oOO
NOT NECESSARY TO SUBMIT 1T TO
THE PEOPLE
Report By the County Attorney-Re-
solution Adopted-Coverirg All the
Detnils-C. o. Whittemore Au-
thorized to Manipulate the Denl.

The county commissioners yesterday
decided to fund the outstanding IN
debtedness of the county 10 the extent
of sS5O,000 by issuing bonds payable in
lawful money of the United States.
Some weeks ago the preliminary
steps were taken, Mr.. Whittemore be-
ing instructed to correspond with
bond buyers in the east as to the prob
able price such bonds would command.
He did so and received a number OF
replies favorable to the proposition.
The commissioners believe the bonds
can be sold at par very readily, and
if so the county will be better on
bonding the indebtedness than it IS at
present paying per cent interest on
warrants.
THE ATTORNEYS REPORT.
Mr.. whittemore's report was as fol-
lows
"Gent1emen-In pursuance of the
resolution adopted by your honorable
body on the 9th inst, directing and
instructing US to advise with purchas-
CTS of bonds with a view of ascertain
ing the most desirable form of bonds
to be issued. and the lowest rate at
which the same could be negotiated.
we beg leave to herewith submit the
following report:
We have communicated with
number of financial institutions in the
various eastern cities with the view of
ascertaining. first, whether. under the
law of the state authorizing the issue
of county bonds. a bond issued payable
in gold coin should be sold and sec
ond. upon what terms and conditions,
and at what rate of interest could a
bond payable in lawful money of the
T-n'ted Stsras' he sold. In response to
these communications a number of re-
plies have been received and from
them and from further personal inter
views with local financial Institutions
who deal in securities OF a like char
acter. we are led to conclude that IN
der the law authorizing the board to
act in the premises. bonds payable in
gold coin would not sell to advantage
by reason Of a question as to the au-
thori+y of the board to issue such a
bond: and. third. that bonds of this
county issued in pursuance of a. proper
resolution of this board payable in law
full money of the United States and
bearing interest at 5 per cent per an
mum, payable semiannually. and ma
turing twenty years after date. can
be sold at par, if not at a slight pre-
MUM.
We would, therefore, advise YOU
that in issuing the proposed bonds the
form prescribed by the statute under
which they are to be issued can be coqn.
pied with, and that the bonds be made
payable in lawful money cr the United
States
AS to the amount of bonds that
should be issued. we beg leave to re-
port that we are advised by the county
auGFtor that the Indebtedness OF Salt
Lake county on the 4th day of Jan
uary. 1896, as evidenced by outsta ndine-
warrants, amounted to s442. 1874. and
that tf-e accrued interest on said war
rant Indebtedness amounts approxi
nateiy on that date to the sum of $40
4O4.52 making a total indebtedness of
warrants and interest of s4S1. 572. 26.
we are advised by the county treas
ufef that there was in the treasury
and' available for the redemption of
outstanding warrants on January 4
1896 S57.552.29. In making an estimate
OF the actual Indebtedness existing on
the date last mentioned, the amount
IN the county treasury should be de-
Quoted from the total of the outstand-
ing warrant indebtedness and interest
Making this deduction, it appears that
the actual Indebtedness of the county
on the 4th day of January, 1885, was
S4240lS.97.
Among the warrants outstanding on
the 4th day of January. 1896, and which
are included in the total above men
toned. were the warrants issued to
a. II. Andrews & Co. for the payment
of the furniture sold. by that company
to Salt Lake county during the year
1894. and the face of which warrants
amounts to s54973S5: and there was
also included in thu amount of out
standing warrants on the date last
mentioned, the warrants issued to the
Macadam Rock company, the face of
which warrants amounted to s19.35 80. !
These warrants. we claim, were fraud
ulently issued in this, that the circum-
stances surrounding the transaction.
in which the representa- tives Of the
county were concerned on the one side
and the representatives of A. H. An
drews & Co. and the Macadam Rock
on the other. worked a fraud
upon the county. and it is the pur-
pose of this office to defend against the
payment Of said warrants
we would therefore advise you, in