The daily journal. (Salem, Or.) 1899-1903, 1901-05-08
BOND LITIGATION
HAS BEEN STARTED
City Authorities Seek to Collect the
Anson $4,000 Obligation.
OF Course, the Baltimore Bond Com
pany Did not Give a Bond Intending
to Pay.

Unless settlement OF the Anson bond
is had in the meantime, between the city
Of Salem and the Fidelity & Deposit
Comps of Baltimore, Maryland, the
municipality will at the June term OF
the Marion county court institute suit
to enforce the payment thereof
Mayor Bishop ind City Recorder
Judah, who we're constituted by the
common council committee to enforce
che collection of the bond, today placed
the city's interests in relation to the
matter in the hands Of w. II. Holmes
who will represent the city in the legal
capacitv until the action is finally dis
posed of. Council Tuesday night
satisfied the work of the committee in
this behalf. Following is some of the
cor 9 p ,nt ence that as plssed betv n
the ,nteres' ed parties of the pending
litigation.
In response to letter directed by the
Salem city council to Scott Bozorth,
local representative for the Fidelity Il
Deposit Company, of Baltimore, Mary
land, demanding settlement of the
Anson boud, following reply was received
"Referring TO your letter advising me
as agent of the Fidelity q Deposit Com
pany that +. X. Anson had failed to
comply with the terms of his contract
with the city OF Salem, Oregon, whereby
he agreed TO have an electric light plant
in operation by the first day OF April
1901, and asking that said company pay
the penalty OF the bond, have to say that
the letter was referred to the home
Office of said company and was by 1t
referred to the attorney for the company
Geo. q. Bingham, of this city and the
matter lie in his hands for consideration.
''You will in due time be further ad'
vised in the premises"
The following letter under date Of May
9th and addressed to Mayor Bishop and
Recorder Judah was received from Mr.
Bingham:
"Your recent letter TO Scott B0zOrth,
local agent of the Fidelity Il Deposit
Company, concerning the franklin K.
Anson bond has been referred to me.
"Mr. Anson seems to have abandoned |
the company as we'll as the franchise, |
and for the council 10 preserve it's rights |
against Mr.. Arson IL is necessary that 1t |
proceed with caution. Without conced.
ing any liability, whatever, under the
bond, or making any admissions against
the company, il appears to me that you
the scope and intent OF
the bond and put wrong instruction on
the language. | understand its effect 10
be TO secure 10 the city such damage as
Il has sustained by reason OF the light
Ing plant not being installed on or be-
lore the frat day OF April 1901, not ex.
,eedng in amount the sum OF 5000.
The $4,000 is the limit Of the liability
and not All admission that the city is
damaged to that extent II, after ex
animation. you find the view to be cor
rect, ! shall be glad to confer with you
the damages sustained by the
,ity."
To this letter, Mayor Bishop and Re-
,order Judah, made the following reply,
addressed to Mr.. Bishop:
"In response to your favor Of the 9th
nst., we beg to say we commend The
caution you plead in the disposal OF your
clients interest in this relation, but dc.
orecate the conclusion you have reached
rs TO our apprehension nf the city's at
.itude in the matter of the bond hereto
ore furnished byF. r.. Anson and avoUch'
ID by your client, We entertaiu very dis
inct views as TO the liability OF your
and the claim Of the city OF
salem. The discussion OF these matters,
lowever, is quite beyond the purview
II our instructions from the Common
Council, and We hereby respectfully in.
orm you that the further disposition OF
he eity's interest here in, has this day
Deen confded TO the care OF W, Ii.
Holmes, Of this city, who will act as the
attorney of the claim and its settle
,,ant 10 finally alinatad