The herald., 1898-03-24
WHAT CAN VENTURA Doe
She Wants an Electric Light Plant.
Can She Vote BondsP

VENTURA, March 22.--The town board
met last night in order to settle the munich
pal ownership of the electric light plant.
The former company has ordered the neces-
sary machinery for the reconstruction of
the old plant. Meantime the city is pre-
pairing to do the same thing. Mr.. Chris
man, president of the electric company,
was present and most emphatically denied
the report that a good deal of time was
wasted in rebuilding the recently burned
plant, and said that the new machinery
would be here in a few days.
The board resumed the discussion of
floating bonds, when Senator Orr, attor-
ney for the company, arose and made quite
a startling announcement. He said that
the point had been raised as to whether
the town, under the present construction
of the law. could float bonds, and quoted
the view taken by Attorneys Chickering,
Thomas and Gregory of San Francisco,
who advised Hecht & Co., bond brokers of
St Louis, Mo-, not to purchase the munich.
pal bonds recently floated by the town of
San Leandro. The following is the opin-
ion of Messrs. Chickering, Gregory and
Thomas:
I'VE cannot advise you to purchase the
aforesaid bonds, as in our opinion they are
invalid. In 1897 the legislature passed a
new refunding act. By section 4 of that
act certain previous statutes are repealed,
among which is chapter As of the statutes
of 1898. This refunding act can be found
in statutes and amendments to the codes
of 1897, on page IS.
Chapter 4S of the statutes of 1898, found
in the statutes and amendments to the
codes of California, 1893, on page 81, is an
act dealing with the issue of municipal
bonds for public improvements, making
no reference whatever to refunding bonds.
The legislature, by repeating section 4s, has
repealed the only statute in existence deal
ing with the length of time for which bonds
are to run and with the method providing
for the collection of an annual tax for the
payment of these bonds. The result is that
no municipal bonds can be issued at pres
ent because there is no statute which
fixes the length of time for which they are
to run, nor is there any provision made
for the collection of an annual tax to pay
the same. The last omission is very Sc
rious one, as the constitution of the state
of California requires that such provision
for collection of an annual tax shall be
made In every issue of bonds.
CHuOuptcuiy lAiS repeating Dy the leg
islature was done inadvertently. What
chapter AZ of the statutes of 1S93 which
they no doubt intended to do was to repeal
can be found on page So This statute deals
with the refunding bonds. and, of course,
was intended to be repealed when a new
refunding act was passed."
The board was taken aback somewhat
by this statement, especially City Attor-
ney Shepherd, who said that if the facts
stated were true, the question undoubtedly
must be investigated. The board soon ral-
lied from the shock and went right ahead
with the preliminary arrangements of a
municipal plant. After twelve ballots. Mr..
Nessley was elected consulting engineer
to superintend the construction of the
plant, with remuneration of per cent of
the cost of the entire structure.
The trial of Lee Hill, charged with the
murder of Theodore PAWN by hitting him
over the head with scantling, will begin
in the superior court tomorrow.