The labor world. [volume] (Duluth, Minn.) 1896-current, 1897-11-27
A new PROPOSITION
Mayor and Nine Out of Fourteen
Aldermen Favor Mr.. Gays
Proposition.
Amount, $1,25O,000 Five Per
Cent Thirty Year Bonds
Water Plant Boilers.

The city council transacted large
amount of business Monday evening,
particularly if talk means business.
After it disposed of routine matters
City Treasurer Voss was given the
floor, at the request of Alderman
Richardson to explain in regard to city
orders. "
Mr.. Voss said that contrary to an ap-
parent belief city orders were not pop
ular investment. Many savings banks
are not allowed to hold them, and owing
to unfavorable reports circulated in the
east Duluth's credit is not as good as it
used to be. Another reason why such
orders did not stand higher was the
failure of the law to limit their issue.
Mr.. Voss said that he had invited Mr..
Dunn from the twin cities to examine
the city's financial condition. Mr.. Dunn
is an expert money getter and as re-
suit arrangements have been made
through him to dispose of all the or
ders necessary. a.. 5 - }c##gs
Alderman Simpson wanted to know
why we should renew these orders at
high interest for two years when, under
the new charter, we can refund them
into low rate bond? Replying to this
Mr.. Voss thought we could not sell such
bonds Our orders can not be foated
at less than per cent. It is true some
we're issued as low as 6. but the con-
tractors who took them got rid of them
at discount. The necessity of com
mission arises from the fact that attor- Z
neys doubt the right Of; the city to pay
more than per cent, hence the orders
are made to bear per cent and the com
mission represents the difference be-
tween that and the going rate. s..
The fire department accounts ap-
peared under the head of miscellaneous
bills. Sang objected to their considera-
tion until properly designated. They
were ordered paid. The claims against
the Prescott company were ordered paid
subject to the consent of the surety
company. An estimate for N. F. Hugo
was cut down SOCIAL because of dis
puted bill for hauling. The pay roll at
the city pump factory" was passed
after the committee had answered num-
erous inquiries in regard to tho duties
of various employees. and the board was
instructed to take out in connection
with this enterprise employers liability
insurance to the amount of $4,000. A
Carroll. Porter final estimate was held
up because of unpaid labor claims. ( (
Sang at this junction wanted to know
chow about" those boilers? Smith for
the board of public works said he
thought when the city put Mr.. Craw
ford in charge of the Prescott works
that it obtained possession of the boil
ers. It seems not, however.
City Attorney Richards said city
could either order new boilers else
where and fall back on the bondsmen
for the money already paid, or it could
take the boilers and by giving bond
when a replevin suit was instituted,
have the advantage of their use while
the controversy was being adjudicated.
The council went into committee of
the whole to hear from Mr.. Gay about
the gas and water plant. Alderman
Harker was chairman.
Mr.. Gay said his figures were $780,
600, but this did not include a settle
ment either of the hydrant rental suit
or the back taxes. There was lien of
s295,000 first mortgage bonds which the
city is to assume, that amount to be. de-
Quoted from the s1,25O,OO0. This was
not formal offer, as his arrangements
were such that as soon as he offers the
property at that price he becomes obli-
gated to purchase the holdings of the
foreign bondholders; it was simply
statement of what he could do. He
would agree to take the city's bonds at
par. but not drawing lower rate of in
terest than 5 per cent. In justification
of the rate of interest he said that there
were already so many Duluth bonds on
the market at the higher rate that
bonds bearing lower rate could not be
sold. In answer to Alderman Jefferson
he said there was no difference, so far
as Duluth is concerned, between water
bonds and general bonds.
Alderman Hale moved that tho COM
mittee report in favor of acceptance Of
Mr.. Gays figures when presented in a
formal proposition.
Alderman Jefferson mo yed an amend
ment that city would pay sl,l14,OOO in 4
per cents running 80 years, and the
company should have 80 days to accept
those figures.
President Cochrane approached tt
Continued on third page.