The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-06-27
Unable to Pay the Salaries of
the City Employees.
THE WARRANT HOLDERS FORBID
No Likelihood That the Voters Will
Fund the Boggs Warrants.
The Unpaid Firemen TO Quit on July 1
-weidierss sawnfil. the Largest at
Portland. Destroyed. EntaIiing n
Loss OF $3.50. .ooo-A wife-MurSierer
Hanged at Empire City, Or.


reports cf the warrant investigation COM
rnistee were placed before the city couaSf
today hy Mayor Fawceft in the following
letter. which explains the predicament
in which the city has been placed by the
injunction IN the Cove suit As well IS
the decision of the supreme court IN the
Eidemilier suit:
II present herewith for your immedI-
ate consideration the ma agoFsty and NH
norfsy reports OF the committee Of ff-
teen heretofore appointed 20 tnyestlgate
the financial af1airS Of tho city and point
out the necessity for your prompt action
IN deyising ways and means 10 sustain
the city government. liy a recent deciS-
len made by Judge Prifchard all tho mon
ey derived from the tax levy Of Isa5 and
1896 must be placed in the general fund.
II this decision is sustained hy thu SUI
prens court there viii be no money 20
pay interest coming due. nor viii there
be any money 20 pay interest coupons
held by your citizens fer June interest
paid The city has paid no salaries for
many months. and while We have fund
amounting 10 over ssa.eoa called a salary
fund. the warrant holders have obtained
an Injunction entosning the city from us
ing any OF this money until all warrants
issued prior 20 1896 are paid. Unless
something is done by your honorable
body az once 10 furnish means 10 pay
discharge those duties necessary to MAIN
tain the municipality"
AS soon as the council had become pos
sessed Of the reports ard the documents
attached 10 them. the whole matter was
referred 10 the flnance and judiciary COM
rnittees. The joint committee met In the
council chamber and Continued IN session
all day without arriving az any definite
plan whereby the city viii procure relief.
Briefly. the warrant investigating COM
nittee found that the So. 900 Of o0tsfand-
ing general fund warrants. exclusive Of
Interest. were regularly issiea within the
constitutional limit and the city received
value for them. II also found fhat S&sA.eo
Of per cent. warrants issued from june
Is. 1856. 20 july /. 1894. We're eashed by
Treasurer BoEEs and Feissned by him or
deposited IN hanks which have since failed.
The committee fnds that these Warrants
have bern paid and arc no longer valid
claims against 1he city aud should not be
redeemed again when the funding bonds
are voted. From this cause ira the report
three members OF the committee disSente1.
Although the investigating committee
performed ils work Wen. the city authort-
ties are as much az sea as ever OF the one
great question. how 10 pay running cx-
genSes. Inasmueh as fhlrtv~xaven mem
bers Of the fire department have notified
Mayor Fawcett that they intend 10 quit
the city's service on July 7. s1nae way 20
pay part Of the back salaries and keep the
departments running is the vital problem.
According 70 the mayor and the city az
torney. the hands OF the city government
are tied by the warrant brokers. Who have
blocksded everything with the Cove In
Junction, The mayor said today that no
matter II the funding bonds were voted by
the people, the courts would have 70 pass
unon fhsra before any one would bay them,
oss9 a#
In the meantime the city's employees are
threatening 20 leave is service Mayor
Fawcett's idea Il that the warrant-halders
should dismiss their suits and allow the
city 70 use its money In tbs salary fund 20
pay the most pressing claims. ~ that tho
various departments IN tho city govern
ment VIII not have 10 shut down.
Although the joint committee of the
council sat All day discussing the prob
lera II was no nearer a solution than In
the morning II was conceded that II The
council asks the reOple 20 vote bonds COW
erinE the whole amount. including ths
Boggs warrants, they wili refuse. III. on
the other hand. the people should he ask
ea 20 vote bonds TO take up the 1e per cent
warrants which we're SOLD for cash. then
the owners bf the BoEgs warrants would
eufoin the city, and no salaries would be
raid until the matter bad gone through
the tedious process ~ the courts Either
way the mosey in the salary fund would
remain tied ~. and. for that matter. the
city would not he able 20 meet her inter-
est payments IS long as the Cove s3it tn
junction stands
Councilman Norton said IN the course
of fha discussion that he was unwilling
that the cliyfs employees should continue
20 work without pay. lie was in favor of
establishing a F<anfeer IRE department In
the present emergency u the paid men
walk ont
4 letter was yesd from Theodore Hos-
uier. stating that he was willing 20 ta one
Of fifty or ias citizens % contribute 50
each as A Iran 20 the flrersn IN order 20
keep the department together.
The COMMITTEES adjourned flii 8 o'clock TN
the evening 70 continue TIE dis0usslon.
An important feature % the report Of
the investigating committee s. fhe fact
that much evidence was gathered Nhavr-
ing that R0ggs d@nGsItad the great g1a-
gsrEfv of the Warrants ISSUED between
Jane 3. fsss. and April IT, isel. the day ne
werf out ~ efHe@ fn the hanks that have
since suRvsnHsd THE question hns been
raised. how could 81 30 nrBsen that the
warrants bad been once paid The DE-
rosst silns made bv rowFs sh0w thF NUM-
herz arr euaour's ~ the warrants Re
casha4 and deposited. aH8 ronies % these
SiEnz were secured bv shs committee and
fled with SIS report
As vas exclusively rutIishcd ia the
Post -Tntel1lzemreY THURSDAY. the suh-cons-
rnfttee 10 whfrh WIS rsferrsd the BogRs
warrants reported fhaf fhgy had heen re-
aseerued onee au8 we're no longer an obil-
cation agafrEs fha city