The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-09-11
(UT DOWN THE INTEREST.
Rate Offered By Treasurer
Lynch On County Bonds.
WAS TOO SMALL TO SUIT THE
OWNERS.
Russell L. Tracy Holds That Eight
Per Cent Is the Rate Payable
Both Sides Take Legal Advice
The Effect Of It AL.

When all litigation over the issue of
warrants and bonds by Salt Lake
county ends ard when there is TO fur
tiher dispute as to- the times and
amounts of 7lerlegal debt. limit, the
taxpayers and holders of county paper
viii surely have cause to rejoice. Yes
terday another phase of the yeXatieus
question CAME to the surface, when
County Treasurer Lynch rendered sew
eral holders of county, warrants in large
amounts the cash to redeem the scrip
and accrued interest thereon as calcu-
lated by him. Ali his tenders were de-
cIined. ~
ADVISED ON THE SAFE SIDE.
Desiring to be on the safe side.
Treasurer Lynch recently conferred
With County Attorney Van Colt on the
problem that he knew would soon con-
front him The attorney advised that
the proper construction to be put ON
the recent decision Of the state su-
preine court in the case of the P Y.
Ccal company VS.. Salt Lake county and
also On tvs legislative acts. which took
effect June g. 1896, warranted the
treasurer to allow only per cent an
nual interest on all registered per
year, when 1t became lawful to pay
interest at per cert On county war
rants until there was sufficient money
in tale treasury for their REDEEM pi.ion,
and wGlen, also. the act validating war
rar1ts therefore deemed to have been
issued in excess of the limit of Fnd5bt-
edness permitted by law became eff
fectfye.
TENDER TOO SMALL.
In response to the call for the re-
demptdcn of designated county war
rants issued in December. 1884. Mr.
Russell L. Tracy was among the first
CT tine large dealers in county scrip to
present himself at Treasurer Lynch g
Office yesterday. He had the interest
claimed by him at tdls rate of s per
ceq.5. from the registration date Until
yesterday, the call date, computed and
the figures before 1a;Tn, but the treas
urer. acting upon tina county after
ney's advice, refused to pay any more
than 5 per. cent interest from June 5,
1885, The formal demand, tender and
refusal, along With explanations. ended
the incident SO far as 1T related TO Nr
Tracy. but Treasurer Lynch was kept
busy all day going through similar
foTfnalities and explanations.
POINTS FAVORABLE TO HOLDERS.
Broker Tracy contends that the per
cent interest clause in the old issue of
warrants was authorized over three
years ago by Judge Zane's decision in
a case brought against the county to
! determine the question of interest and
the rate allowable on county scrip not
redeemed on first presentation This
decision was to the effect that in tine
absence of a statutory provision it was
lawful for the county to allow interest
at the rate of 8 per cent yearly until
funds were available for payment of
principal and interest on warrants, the
same as would be collectable on a
Judgment against THE county.
The legal advice MFR. Tracy has goes
further and declares that the warrants
in question, calling for 8 per cent in
| terest constitute a valid contract which
cannot be abrogated by legislative en-
actne1lt.
Another point in favor of Mr.. Tracy
contention is that the county has al
ready recognized the payment of the 8
per cent interest. Last December,
ty bonds to the local banks and re-
ceiyed in payment warrants issued
both before December, 1894. and as late
as June s, 1886, interest was computed
and allowed at the rate of 8 per cent
annually from registra ton date until
the delivery of the bonds.
THE IMMEDIATE EFFECT.
Besides Mr.. Tracy, several-other in
vestmelt brokers and bankers are af-
| fected by the county treasurer's action,
and the difference in interest. figured
both ways, on the registered warrants
included In the last caM Of $4,000 ag-
| gregalses about s., 200, but there are
other large amounts OF connty script 10
be redeemed and about s1h,0 900 more,
approximately in interest. az shis date
win be disputed. ~
The disputed question Will ba carried
into the courts in a few days for adj
| Indication Should THE county be conn
pelied to make settlement OF interest
on the basis contendet nv Mr. Tracy.