Omaha daily bee., 1899-04-01
GENERAL FUND WARRANTS
Mayor Jennings Favos Immediate Action
with a View TO Refunding
COMMITTEE SHOULD GET TOGETHER
owing to sheas Legal Fight some
DinicuIty May lie Encountered
In Floating Issue of Re
funding Bonds.
COMMITTEE SHOULD GET TOGETHER

Nayor Jennings Is strongly in favor OF the
| city taking immediate steps looking to the
refunding of the outstanding general tund
! warrants and Will suggest that the nnahce
committee get together for this purpose as
soon as possible after the regular meeting
Of the city council next Monday night. That
this is the proper course for the city 10
pursue Is the mayors opinion, since Judge
Towner, in the decree in the Shea case, while
holding that the city cannot issue any fur-
ther intersection or general city bOnds,
holds that the inhibition shall not apply
to refunding bonds issued under legal au-
thority in exchange at not less than par
and accrued interest for valid outstanding
Indebtedness of the city. In his opinion,
which forms part of the decree. Judge
Towner held that the general fund war
rants were legal indebtedness of the city
and had not been issued in excess of the
constitutional limitation.
Mayor Jennings believes that the city
ought to at once issue these refundng
bonds and make effort to dispose of
them. He Is not in favor of waiting until
Shea takes the case up on appeal and a
decision is rendered by the supreme court.
As the case now stands Shea has filed a mo-
tion for rehearing. the outcome of which
is uncertain. and in the event of it being
denied. Shea will then have six months in
which to file an appeal. After the case
is appealed it may be one or two years
before d decision is handed down by the
supreme court. Such being the case, the
opinion of Mayor Jennings, and one in
which he is supported by City Treasurer
Reed, is that the city should at once go
ahead and float the refunding bonds if pos
sble
Both Mayor Jennings and Treasurer Reed
believe that the holders of the outstanding
warrants will be glad to exchange their
warrants for bonds, although the bonds will
bear but Az per cent interest as against
the 6 per cent that they are now drawing.
The bonds they believe can be disposed of,
as the rate of interest will be an induce
ment to purchasers of such securities. II
the refunding of the old outstanding war
rants could be accomplished, and Treasurer
Reed is inclined to believe it can be done,
the only obstacle against the payment of
the warrants issued for current expenses
will be then out of the way Then the
treasurer can at once proceed to pay off
without any danger the present warrants,
and thus relieve the city of a large amount
of interest which at present it is compelled
to stand, owing to the funds of the city
being tied up pending the settlement of the
question as to which should be paid first,
, the old or the current warrants.
1t is understood that the offer made some
! few weeks ago by Cashier Hannah of the
First National bank is still open and that
he is willing to take the entire issue.
When seen yesterday Mr. Hannah said in
response to an inquiry if he was still will
ing to take the bonds, that he was still
in the ring that he had made the city an
offer, but beyond that did not care at this
time to make any further statement. He
said it was his opinion however, that the
city would find some difficulty in floating
the issue of refunding bonds, owing to the
fact that Shea intended to take the case
TO the supreme court, where it might be a
long time before a decision could be had.
The bonds in any event he considered
! would be just as good security as the old
warrants which they would replace.