Arizona republican., 1905-07-23
THE MAYORALTY City Council Will Gall a
 Special Election TODO'S CHECK REJECTED
Again BOndbuyers Are Hung Up Council Proposes to Have Cash at Once Even if 1t Takes a Year to Get it.

The adjourned meeting of the city
 council last night was a good old fash
 toned session where about al hundred different things were attended to and where those of most interest to the public took as usual the least time and
 came last. The very last thing before adjournment was a motion instructing
 the city attorney to prepare Ordi- nanceS for submission at the regular monthly meeting on the first Monday in August, calling a special election
 to fill the vacancy caused by the res
 ignation of J. c. Adams from the office
 of mayor. Earlier in the evening the
 city attorney had been instructed to look up the law in the case and if
 he found it necessary in compliance with the statutes, file with the sec
 retary of the territory the resignation
 submitted by MT. Adams to the coun-
 cil
 The other question which most concerns the people just now is that of the water works bonds. T. J. Prescott, representing Todd & Go. of
 Cincinnati, presented to the council in perfection of his offer formerly made for the purchase of the bonds, and in lieu of the certified check
 rendered at the last former meeting, a new check, certified to and endorsed, making it payable to '.the city of Phoe- nix, subject to the terms of our bid.
 when $30O,OO0 of five per cent water works bonds are legally issued and
 delivered to us"
 MT. Kersting addressed the council by permission, previous to making a motion. He said that while he be-
 lieved that Mir. Prescott had acted in good faith he did not believe that w
 R. Todd S Go. were equally as pure minded. He had made a diligent search for their rating and could find nothing in Bradstreet concerning the
 firm, and only the merest mention in Dunn's report with a flair" rating and no record Of. them as bankers He had learned that they were only brokers and in business only since 1900 and there was nothing to show their ffnan- cial standing except the checks they presented to the council. All previous ones had been returned as unsatisfac- tory and now he offered serious ob- jectiOns to this one as follows: First it was made payable not to the treas urer of the city of Phoenix or the "cOmmOn council" the legal corpora ton name, but to "The City of Phoe- nix" an assumed name that had no legal existence. He objected further 10 the fact that there was no date specified as to when the money should be paid over. It was referred to only in a general way by the words, when the $30O00O in bonds are legally is sued and delivered to us" He con tended that they might claim illegality of issue for various reasons and re- fuse payment indefinitely. In respect of litigation he said he had been pre- viously led to believe that Todd G CO. were to assume the city's litigation, which he now learns they do not in tend to do. Furthermore. he said tLarr was nothing about the check thae made it fOrfeitable to the city in the event Todd & Co failed to keen is contract, the check being mercy first payment on the bonds. IT the were made with that firm ae cOntended that the City Water Works or MT. Sherman. if they saw fit, might at any time pay Todd & Go. a nice margin to refuse to mature it's contract. For all of these reasons he moved that the offer of Todd G CO be rejected on the ground that the had not been compiled with, and their check be returned to them. Furthermore, they had not re- piled to the question whether or not they would take the bonds signed by i an acting mayor a fact that he thought strengthened his position.
 MT. Greene seconded the motion and !! Mir. Prescott spoke in defense of him | self and Todd & CO.. assuring the 1 council that it was 9 reputable firm of brokers and private bankers and i he was certain that it could give i any kind of a check desired if it | could find out what the council want i ed. He said the reason they had not | replied to the mayor question was | that their counsel at the time the ] question was asked them was out of the city and they weIe waiting for 1 his opinion.
 Previous to all this the council lis tened to the reading of a letter from he Union Savings and Trust Co.,. pro-
 estng against the action of the coun- eil on July when t rejected it's bid IS not being in good faith for the req son that it had written asking for further evidence concerning the legal ty of the bond election. Among other hings 1t asked the recorder to certify hat all who had voted for the bonds were qualified electors, a thing the re- | cOrder could not do without access to he ballot boxes, which are now off ;ially locked uo and put away. Fur her the question seemed triiing, for he company had already been fur lished a transcript of the official can ass and other facts pertaining to the election. This letter was laid on the able where it may be called up any ime in the future that it may be de- iirable to do so.
 The council then having cleared the date was inclined to proceed all over
 gain, with the work of selling the ] ponds. A motion was made instruct ng the attorney to open up cores londence with bond buyers with a jew of finding out who would be will ng to submit bids. There was a dis-#