The Superior times. [volume] (Superior, Wis.) 1870-1912, 1903-02-21

Perhaps the most important ouSi
ness transaction at Monday nights
council meeting was the reading of
the report of the finance committee
on the refunding of bonds and the
communication which will be sent out
by the city attorney to all bond hold
ers ralative to the matter
The council has given the city at
torney authority to send out THESE
communications which are indicative
of the policy of the present city gov
ernment.
The communication is as follows;
To the Holders of City of Superior
Bonds.
Gentlemen: In reply to inquiries
received at this Office during the last
six months relating to city bonds, we
advised that actions were pending
which would probably determine the
legal status of the different classes OF
bonds, and that after the decision of
these cases, the city would endeavcr
to adopt some general plan to adjust
its debt.
Since that time, decisions have been
rendered in both state and federal
courts defining the character of our
improvement bonds and the extent OF
the city's liability therefore. When
these decisions were rendered, we
hoped and undertook to make state
ment for bond holders ani 10 outline
IA plan for Tefundng, but additional
legisagation seemed to be necessary
before definite action could De taken,
and for that reason, formal statement
was deferred. A bill has been intro
duccd in our state legislature, now in
session, authorizing the city TO refund
its indebtedness to the full extent al.
lowed by the constitution. This bill
will probably be enacted into law, and
we shall then be in position 10 take up
the subject of refunding without de-
lay.
In the meantime the city proposes
to use certain money in its sinking
fund in the retirement of such bonds
as may be offered on the most favor
able terms for the two fold purpose OF
satisfying as much of its debt as poss
lille, and of bringing the balance of its
wi0nin the constitution issue of re-
| funding bonds On this theory, offers
from holders of any class OF bonds
will be received and considered by the
the city within the next sixty days
| aud If favorable terms are made. the
sum of $1,000 now in the sinking
| fund will De used III retiring such a.
are offered on the lowest basis, the
city reserving the right 10 reject any
and all bids.
As means of estimating the value
of the different classes Of bonds out
standing and of indicating the basis
on which bids will be considered by
the city, it seems proper to make the
following explanation.
The city has bonds outstanding at
follows:
General bonds . ..... sbS3, ,5ooo
Street improvement bonds 537 ,397 3
Sewer Improvement bonds "a, $40 3
Bonds in sinking fund, about ITO, ,OOO.O
Making total of ......... ,3s5, ,99S. q
exclusive of accrued interest and o
strictly special bonds issued for har
Dor and other purposes. The assess
ed valuation Of the city OF Superio
tor the year 1902 is sl3, 3,209, $40 % anC
the maximum indebtedness which the
city can incur under the constitution
is 5 per cent of that sum, or s66s, 4Sl U
Of the above bonds, those issued by
the city for general purposes are gen
orally regarded rs void, because NJ
direct annual tax WAS levied or Sink
ing fund provided for their paymen
at the time Of their issue, aB required