The record-union., 1898-02-25
THE COURTS MUST DECIDE.
VALIDITY OF THE ROAD BONDS
QUESTIONED.
Harris & Co. Decline to Take Them
Until the Courts Pass
on Them.


swer of n. II. Harris & Co.. the high
est bidders for the $4,000 of Folsom
road bonds, as to the result of their in
| quiry concerning the validity of the
bonds. Ali the members were present
except Chairman Morrison, and Super
visor Jenkins took the chair.
| District Attorney Ryan appeared oe-
| fore the board and stated that Mr.. Bar
roll, representing Harris & Co. of New
York and Chicago, had received word
| from his firm to the effect that its at
torneys had given an opinion adversely
to the validity of the bonds. The ground
| is that a municipality cannot be held
| liable for bonds issued to construct
roads outside such municipality.
Harris & Co. are willing, however,
said Mr.. Ryan, to leave their deposit
up and to take the bonds at the figure
named if the State Supreme Court
should decide that the bonds are valid.
This, Mr.. Ryan thought, could be de-
/ termined within few weeks. san
Mateo County is about to vote on a
similar proposition-the issuance of
some $500, 600 for constructing macad
am roads. There are two municipali
| ties in that county Under the circuln-
stances the Supreme Court would un-
doubtedly take early action in the mat
/ ter.
! The opinion given by the attorneys
for Harris & Co. was to the effect that
all the proceedings of the board in the
matter had been regular, and that the
only point on which there existed any
question was as to the city's response
bility. AS to the point-on which some
question had been raised-that the call
for the election did not expressly state
the denomination Of the bonds, the
opinion was that there is nothing in
that contention and that everything
was regular and legal.
1t will be noticed that the opinion
of the attorneys for Harris & Co. is in
line with that originally given by Dis
trict Attorney Ryan-namely, that the
municipality could not be held liable
for the payment of the bonds.
Clinton l.. White, representing the
! National Bank of D. O. Mills & Co.,
stated that while the bank is satisfied
the bonds are valid, it was not its in
tention to purchase them as a perma
nent investment. In order to put them
on the market and pass them along,
| the validity of the bonds should be un-
questioned, wherefore the bank did not
care to take them at the figure bid, un
| less the court had passed on them ia
vorably.
Mr. Ryan then read the draft of an
agreement between the board and Har-
| ris & Co., binding the transaction, as
previously agreed on, in the event that
the Supreme Court should hold that
| the city is liable for the bonds as is
sued. For the $4,000 worth of bonds
the agreement binds Harris & Co. 10
| pay S16012 30.
| On motion of Supervisor brennan, the
| agreement was accepted, and on mo-
Mr.. jenkins. was authorized TO sign the
agreement.
Then, on motion of Supervisor Nc
Laughlin, all other bids We're rejected
and the deposits accompanying them
ordered returned to the bidders.
! Mr.. Ryan and Mr. White informed the
board that there We're various methods
/ by which the question could be taken
into court without delay.
! Mr.. B&rrol said his firm was as anx-
ious as the members of the board to
have the question disposed of at as
early day as possible. The market
is now IN a healthy condition, but war
or SOME other contingency might affect
| il later on.
THE ROCK-CRUSHER IDLE.
In connection with the matter of the
production of crushed rock for the Fol-
som road. Supervisor Curtis presented
| the following letter from Brainard F.
Smith, clerk of the Folsom Prison;
William Curtis, Esq, Supervisor, Sac
ramento County-Dear Sir: In all
probability we will be called upon to
! begin crushing macadam for the Sac
/ ramento City and Folsom road about
the 1st of May, and when this begins
the total output of the rock-crusher
plant Will doubtless be demanded for
this purpose. If Sacramento County is
/ going to require macadam for it's pur-
poses during the coming season, would
| II not be wise for the Board of Super
visors TO place an immediate order with
us for rock, and allow us to ship 1t to
whatever point you may desire, where
/ you can have it unloaded and piled uy
ready for future use?
/ As our rock-crusher is now idle for
want Of orders to keep it running and
come within the 80 cents per ton limit,
we would like, if possible, to receive
/ sufficient orders to keep ii going until
| the Highway Commissioners begin to
require the rock for the road above re-
! ferTed tc.
/ Kindly call this matter to the imme-
date attention of the Board of Super
| Vlsors and decide what you consider
| best for the interests of the county IN
/ this matter and LET me hear the re-
suit. Very respectfully yours,
BRAINARD F. SMITH, Clerk.
County Surveyor Boyd was asked as
to the requirements for rock for use
on the Riverside road and at Gait and
Elk Grove. where work had been or
dered. He thought that orders should
be put in for about 10000 tons of ma
| terial.
Chairman Jenkins said he was salts
fed the citizens Of Elk Grove would
| If desired, haul the rock from the sta
ton 70 where needed on the road.
Supervisor Mclaughlin moved that
the crushed rock be furnished for the
Gait and Elk Grove work, provided the
citizens of these places will do all the
work required Carried
Supervisor Curtis thought the board
should order at least 10000 tons cf
rock. and Mclaughlin made motion
to that effect, the rock to be delivered
as it may be wanted
This was also carried
The beard then adjourned till the
hrst Monday In March
BARWICK WILL REMAIN.