The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-06-29
THE WARRANTS VOID.
NEARLY HaLF-MILLIOx OF TACOMA
PAPER DECLARED WORTHLESS.
The supreme Court, in A0rming the
Decision Of the Local Court. Holds
pogss' Warrant Transactions H.
legal They Were Purchased In
by Tacoma's Treasurer.

examination o. the decision OF the su-
prerns court IN the Bardsley warrant ease
20 enable the city authorities and those In
terested in the Boggs warrants 10 dscsde
fust hcw far-reactsiag the decision VIII be.
L. IS conceded that the decision, by which
thousands OF dollars worth OF city war
rants issued between August 1882. and
April. 1894. are held TO be invalid and void,
is the most important step that has been
taken By tire courts in settling the Tacoma
warrant muc6la. which has been @ dis
turbsag factor in city finances for nearly
three years past
yierea II another light, the decision
may be regarded as affecting the transac-
tioas in warrants which have been Carried
on by other city and county treesursrs n
the state in purchas ng or redeeming ard
then selling warrants issued by the county
or city. The supreme court In the BarGs-
ley case atfrEls The decision OF the Piercs
county superior court rendered iass A&rcn,
in which IL is held that warrants issued
by q municipal corporation when onee
casssd by the treasurer. become caneslsd.
dead and worthless from taat time on as
an obligation Of the corporation. This doc
trine, which was laid down by Judge
Williamson in a long and carefully pre-
pared opinion is practically sustained py
the supreme court.
At this time it is utterly impossible to
predict the effect Of the decision ON Ia
cona's municipal finances. The "Bogas
warrants have long formed an issue be-
tween certain factions in the city, ana II
the controversy growing out OF them
mucn iIl-feelin. has been engendered. on
one side the city has been held up as a
repudiator IL she failed or refused to re-
deem the Boggs warrants. or issue fund
ing bonds and with the proceeds take
them UP. Last summer ne city council
passed a funding ordinance providing for
the issuance Of nearly 81 .0ro 80 in bonds.
4 y
piled 20 the payment OF these warrants,
which aggregate. with interest. sl.S1o,ooo-
This enormous aeating Indebtedness was
laid on the city during the boom days,
when George W. Boggs. now OF Walla
Walla was the city treasurer The citys
running expenses in those days was near
ly So coo per month. In the summer Of
1.s2 warrants for this amount were issued
every month in payment OF princely sala-
ries street ard sewer Improvements AID
supplies. Although there was then a large
amount OF general fund warrants out
standing, Bpggs, instead of apply ing the
receipts from the tax levieS TO their re-
d. mption. purchased or 'cashed' these
current warrants as they were issued and
then sold them 10 bankers and warrant
dealers Some OF the banks paid HIM d
premium, and 1t is said that he made
sioo.lV0 per year out OF the office. This
process was kept up till the fail Of 1884,
when the Tacoma banks began 10 so I'M
der. Then the citizens. becoming panic
stricken. called on Bogss to desist. but he
refused, although threatened with prose-
cution. Boggs unlawful dealings in war
rants were fully exposed by the Post-ln-
teIligenceT. but the local papers remained
silent. and often blamed the Post-In;elli-
gencer for intru6iRg into Tacoma's mu-
nIctgal affairs.
In the winter of 1884. the city received
ri ! Eright ~ Phil Hafphfa
$3.50 0oD In payment for the extension bonds
issued for the purpose of extending the
water plant which the city had bought
from Wright al fabulous price Eoggs
was short OF funds-that is the banks in
which he kept the city's accounts were
hard pressed for money. holding large
blocks of the warrants which he had pur-
chased TO keep them from going below par.
as they would have done If thrown on the
market, and which the banks recelpted
for as cash. In his extremity, Boggs caus-
cd the council 10 pass resolution In
structing him 20 invest this $4,000 or a
large part of Il, In general fund warrants
OF current Issue. The warrants in pay
ment of the police and fire department pay
rolls and other expenses or the munich
psllty were issued 10 Boggs in denonii-
nations Of $50 and siclo. and under the al
thority OF the council Boggs took the
money derived from the sale OF the water
extension bonds. and without being ex-
posed in his nefsrious work by the local
papers. proceeded to establish an endless
chain" which has brought more woe TO Ia
coma than any OF her other troubles.
Boegs was interested in u number Of
banks In which he kept his accounts. and
was q heavy borrower. In one bank, the
State Savings. Boggs had a balance Of
about 500 $40 when he went out Of office,
consisting principally OF warrants. The
receiver OF this bank paid ID per cent.
NixiH1raR In the In nix = Iafiifg - fnnN1
the notes Of BoggS and his political
friends. many OF whom have since left
Tacoma and who were worthless as Sc
curity. other creditors 0f the bank came
into court and denied that they had re-
celved anything for their notes. The note
OF one of Bo~ss clerks fer a large amount
was found ia the bank. and al expense
Item for s. coo characterized IS election
expenses formed another OF the assets"
In another bank" the Tacoma Trust
and Savings hank. Bocgs was a borrower
fer nearly $50 90. and President ". e.
Allen. CT the bank. was indebted 10 !; fer
Slseao The receiver has realized prac-
ti>aiiy nothing from these assets"
u was in such banks as these that Boggs
deposited the warrants purchased with the /
xIsiV0 received from the water bonds
The warrants have now been declared void |
ny che supreme court.
II IS estimated that EogEs ''cashe5' be-
tween $50 40 and $500 90 q these war
rants. Perhaps the former squire II nearer
correct. although people hare who claim
GO re well posted 1T Tacc-aa'e financial af~
fairs assert that the amount IS over half
\ million. There was time when no one
without ! political p}Ill could ger porps'
money 20 n2eet g. Thsn ;hey sold a. a
premium q I 20 21s per cent.
Tae present litigation over she warrants
vas began in ne fall 81 1875 when y z.