The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-02-20

/ The cedar rlver water system VII prob
ab5y occvpy ;}se es-7sass undivided atten-
/ ti9a Ct the city counel toDlghr, An amend
- Us .snaaee providing Tor tEle letting %
{ use constitution coatFact ard prescribing
Iae rn9sle az pas raeHt VIII he submitted by
. a 3s,st committee composed - tae IRE and
( water and finance soyamlttees u TIE Cctiu-
Ga, ana ire matter Nil be fully discussed
from al s,andlQinfs
/ The amended ordinance has been prepar-
/ ea 81 tEe request Of tAe council by City
! Comptroller Parry ana Corporation Coun-
sci Humphrey. who yesterday afternoon
completed a drsfs for submission 20 the
clty council Wai.e Il Is not probable that
this ordinance VIA be passed IN SIS present
form, the changes made aye not likely to
i,e radical. j departs much from the orig
iaal ordinance. the mos. iEp9sant cas12e
/ beng tae Insertion OF a provision that The
warrants issuea in payment for the worh
shall bear interest from their Own date,
and noI from the date Of the completion
Of the contract. Another change is the
plan vi allowing Subdivisions 81 the cor
tract. nos exceeding four in number.
Novel Financial Plan
The new financial plan Is somewhat novel
ana elnbgdiss the best features of large
number adopted by the cities Of the East
ana Middle Nest 1, provides for the is
sEance Of the warrants in denominations
OF s. go0. payable at the option OF Inc clFy
at any time within not less than one year
after Their date, aud not more than TWEEN
ty. The warrants are 10 bear interest Al
) uer cent: per annuin payable seoi-an-
nually. un January ] and July / Of eaca
year. both principal and interest payable
IL gold. interest coupons ara To ne attach
ed 10 she warrants. and they VIII bear
close resemblance TO bonds: viii IN fact be
bonas in al bat name.
TIE cost Of the neW water system viii
10 some degree be influenced by the ne-
aetIabiHty Of the paper to De issued. II
the warrants are desirable as an invest
,usut they can be sold a par, or even a
a premium. but should they not prove So.
they might have 10 De discounted NO
schemes are before the council Tor dis
nosfnss Of the warrants. one IS tue orig
lnal one. that the cry shail issue TIE war
rants 10 the contractor or contractors upon
49,. work IN payment Tor the same: tne
,,thar = 4 u4gs one that the city Issue ana
sell the warrants for cash ana pay the
contractor or contractors IN cash BotA
schemes have their advantages, pnt 10
matter which Is adopted, me cay VIII pear
the loss in case the warrants must DC u1s-
counted.
Attractive to Investors.
The intention OF the uI AAAS4S u Nii~
amended ordinance has been TO max"
~. warrants as attractive as possible 10
Investors For this reason the coupon
system Of interest payments Was adoPt-
I'd making the warrants practically wafer
system dehentures As good as the Dohas
u any city. bat payable only from me
water rent fund provided for ~ the ordi~
nance Were the bonds payable from all
the revenues ot the city they could sc
readily sold anywhere in the East 70 say
}nes uauks which are the principal hoid-
ers Of municipal bonds. More IMAM -
per ceut. of seattle bonds are DO" Heio
iv Eastern savings hanks.
fut The fact that the Cedar river war
rants are payable only from certain
fund :naacS them paper ~atcA savings
banks ana most other banks are not al
lowed 10 handa. This fact cuts On II
large market for the warrants and To-
cer1er with the fact that they are EaDie
10 be called 1T any time after one year
frna, dat. ana the fuyt her fact that per
cent is lew interest on sucn an ihNtst-
Ineut make II difficult 10 reallIe more
than par on the warrants. SHcu WAT
rants ara invested in principally by the
large LIE insurance corporatlot1S, winch
handle them only through subsidiary cor
DnrsfianS involving brokerage and COM
missions Individual investors also would
10 willing 10 buy the warrants, but would
also have to obtain them from biohFfS,
wno dtxiuct commissions. causing loss 10
the city
VIII Mature in 1874.
II the amended ordinance is adopted rs
] yrut4 sed she warrants. principal ana t1f-
I isrfgf viii Ia, payable in New York Al the
f.rentit,l aseutv ol the state gf Washing
tom wherever any of the warrants are
catiad ln they must he called Ia nunirric-
al order and notice of thc citys iuten-
+ ,{au given SIX months IN advance
II is the opinion OF most 81 the city
officials ftat tno revenue from water rents
+ after Are new system Is put IN E,lli - suf-
fFt.t fa