The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-01-06
WARRANTS NOT PAID
Those Considered Illegal Are Refused
by the City Treasurer.
SOME SUITS MAY FOLLOW
The New Codes Come to the Front
With Objnctions to Certain
Plans of Bonding-A Little
TInkerIng Necessary.


City Treasurer Yoder has refused
payment on all the warrants that have
been presented which the city alleges
to have been fraudulently issued by
ex-City Clerk Perrin w. Irvine. Dur
ing the past few days warrants which
the city claims to be illegal have been
presented for payment to the total
amount of about s1,216.65. Fraudulent
warrants to the amount of about sIoo
have not yet been presented for pay
ment. but when they are they Will be
refused just as the others have been
Mr.. Yoder offered no explanation OF
why he would not pay the warrants.
but simply said he had been instructed
by the mayor not to pay them. One OF |
those who was refused said he would
hold the mayor and city clerk person
ally liable for the warrants. and was |
prepared to carry the matter 10 the |
highest court. The administration is
probaly ready to have the matter OF
the city's obligation TO pay these fraud
ulent warrants settled In the courts,
but prefer to be sued in the matter
rather than bring suit. II beaten in the
suit and forced TO pay the fraudulent
warrants. II claims that II Will then be
able to hold the bondsmen OF Mr.. IT.
vine responsible for the amount OF
these warrants.
The city has redeemed about s165. 900
| in outstanding warrants up to the pres
emf time There is still about $2i,OOO
| left in cash with which to redeem war
| rants, and the rest of the outstanding
| Indebtedness will have to walt another
| year for redemption. The city treasur-
| err will have a statement prepared soon
showing how much of the cash paid out
| the past 30 days has been paid for in
| terest. This will be of especial inter-
| est to those who favor bonding the
| outstanding Indebtedness and Will also
| be of interest to those opposed TO H.
| The per cent interest which the city
| has to pay on all warrants amounts TO
! a good many thousand dollars OF the
| taxes which the people OF Butte pay.
There Is little doubt that there will be
a proposition submitted to the voters
| in the spring, II such action shall be
necessary, for bonding, the plan being
to issue bonds at 5 per cent. TO redeem
the outstanding warrants on which the
| city now pays Z per cent. This would
be a clear saving of per cent. In IN
terest On the present bonds the city
pays 6 per cent, but several bankers
have written the city clerk inquiring
about whether the city will issue bonds
this year and intimating that per
cent bonds would find ready sale.
Right here however. the new code
comes to the front once more and has
little clause which might make a
little trouble and which evidently
doesn't mean what IL says. The clause
referred to comes in section 1887 of the
political code which. speaking of sani-
tary bonds issued by counties and
cities, says:
"rrhe bonds TO be issued upon the
conditions and under the provisions
aforesaid shall bear the date of their Is
suance: shall be designated as santa
ry coupon bonds of the county, city OF
town issuing the same; shall be OF a
denomination not less than $500 or more
than 81 900 each; shall be payable al
such place In New York city or else
where, at the discretion of the board OF
council issuing the same; shall bear In
terest at the rate of per cent. pei
annum, payable 80 years after the date
thereof with the privilege of paying
the same at any time after five years
from such date, which interest shall b'
payable semi-annually at the plac'
whereat the principal is payable, anc
for which interest coupons shall be at
tached to the said bonds
, 1t will be seen from the above tina
the city must pay per cent. interest oil
its sanitary bonds. 1t is not given tn
2 privilege of selling bonds at or 5 pc
e | cent interest. BY the code IL has go
to pay per cent. Evidently the coo
4 | meant to say that the interest "sha
5 not be more than 6 per cent" but tn
I | code didn't say that. 1t said "shal
e bear interest at the rate of per cent
| per annum.
Z This seems to shut the city out fror
2 making a suitable sale OF sanitar
v bonds. This is a section which appar
n emily ought to be tinkered on a littl
: before sanitary bonds are issued.
n The general section on public i'm
: provement bonds, other than santtar,
r contains the same wording. Sectio
: 1876, speaking of bonds for interns
improvements. says: The bonds mus
J; be sold at not less than their par valu
a and draw interest at the rate of s pc
n centum per annum. payable semi-ar
= nually."
u There is a difference, however, in II
. section relating to funding the existin
- Indebtedness, and for bonds OF ths
sort II seems possible to pay less than
per cent. interest. Section 1888 says:
THE council, by a resolution, mu
declare that the existing indebtedne
a of the town or city shall be funded /
= the issuance of such bonds. The bon,
y must be issued for a sum not less tina
lie 800 nor more than $1,000. The intere
lie thereon must not exceed per cen
ID per year. payable semi-annually. al
J. may issue to any person holding eli
Is or town warrants. indebtness or ju
III claims against a city or town prior
Of the passage OF such resolution, at par
is The above section would seem TO 4
m dictate a way to fund the floating de
"a | at a lower rate of interest without Il
L vote OF the people. and merely by vo
ne of the council
1t stands on its own merits. No cur
no pay. DIR. Burton's GUARANTEES
Rheumatic Cure. 81 or s for s.. A
lis druggists.
Those wishing to join a class In q
lily vine science or metaphysical heallr
in can arrange for doing so by callir
n at room 40. Columbia block. Butte.
Is "