The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-30
SAY JOSHUA DID IT
Majority Of City councilmen Hold
City Controller Responsible for
Bond Predicament.
Short. Term Bond Plan, They Say,
Led to Difficulty ii Float
ing Issue.

Inability to dispose Of her municipal
bonds at this time for pressing purposes
OF permanent Improvement, puts Mime
apolis In a serious financial dilemma. For
this majority Of tile city council hold
CITY Controller Joshua Rogers almost
Powers. a member of the council commit
tee on bonds. says that but for the con-
troller, the city council would have real
lied on the $8l5,000 bonds. now going beg
ging. at the same time that the 100000
long term school bonds were disposed Of.
The committee made the mistake, In
originally advertising for bonds,'' said
Mr. Powers of listening to the advice Of
the controller. who urged upon us the adj
Visibility OF making the bonds short term
He was absolutely determined that we
should offer short term bonds, altho the
committee did not take kindly to the sug-
gestion at first. Alderman Merrill for
one strongly opposed it and predicted that
short term bonds would not commando a
ready sale. It looked that way to me, but
as was a new man on the COMMITTEES
and not the expert In such matters that
the controller was supposed to be, was
VIII Ing to take his word for it. He had
plausible way of showing at the time
that there would be enough money coming
In from our sources Of revenue easily to
take care Of the bondsfin ten years, and
thus obviate the payment Of interest for a
longer period. a
Everyone knows what the result has
been. The 8h per cent school bonds run
ming Tor thirty years were quickly snapped
up but the permanent II Improvement
bridge and water bonds at the same rate
OF interest, maturing in ten years, are
still drug on the market, because they
had little attraction for investors. And
now, after the legislature has by Special
act authorized the issuance of long term
bonds which will ana:turezsin thirty years,
we still find the controller with a BULL
dog determination to defeat the issue by
announcing without any provocation
whatever, and before he has been asked
that he will not sign them It is ex-
tremely unlikely that5s11e will have any
such opportunity now, for there is little
chance OF the bonds being disposed Of at
this time. don't suppose he has any
object In defeating the possible sale, but
1t is a fact that the bond investors are
doing their utmost to force up the rate Of
the per cent proposition.
The situation, then, Is that thanks
largely to the controller, the city Is get
ting the name In the east Of being un-
able to sell its securities. It does not help
us any to have people believe that our
bonds are not readily negotiable when,
under proper circumst stances, the opposite
Is true OF them. We need ready money
for permanent improvements which can
i'll afford to wait another year
1.-The controller says he will not sign the
bonds because Of the suspicion that If the
bonds could be sold at par. the purchaser
would be given'a commission of one -rourtf
Of ! per cent. There was no chance OF
such. an lnducement to investors because
it would be illegal to. sell below par, and a
commission would amount to the same
thing. 1890