Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-04-25
Mayor Sends to Council COMMUNE
cations Concerning Bond
Issue.
THANKS FOR THE COURTESY.
Letters Reveal the Fact That Com.
paoy Will Stand by Its
Agreement.

his possession from the bond buyers
received By either he or the city at
torney since the sale was made, was
not legally adopted by the council be-
cause II did not receive a majority vote
Of all the members thereof, Mayor
Morris submitted the communications
last night and they were read 10 the
council by city Recorder Critchlow The
communications from the general so-
licitor Of the company show no desire
on the part Of the purchaser Of the
bonds TO repudiate It's act but only
show that every detail VIII be inves-
tigatcd IN order 20 satisfy the COM
pany that the bond issue is perfectly
legal before any money is paid on the
bonds
The mayor IN hs communication
stated that the resolution requesting
him to send the letters 10 the council
was not legally adopted hnt AS there
Was nothing to be withheld I'm regard
TO the matter he would submit them.
After all OF the communications and
kilograms We're read, A. j. Davis nov
ed that they be referred to the city
attorney and that he be requested 10
instruct the council what course TO
pursue IN the matter.
THE MOTION DISCUSSED.
Wells moved as substitute that
the communications be Immediately re-
turned 10 the mayor with thanks for
his courtesy I'm sending them 10 the
council. lie said that there WAS moth
Ing I'm the letters To- be referred to the
city attorney rs they were all between
he and the attorney for the company.
There was nothing I'm the letters, he
said, 10 indicate that the company does
not want the bonds but all they want
IS to be satisfied as to the legality OF
the issue.
A. j. Davis then stated that his rea-
son for wanting them referred TO the
city attorney was so that I'm the flu
ture all such matters would come d.
rectly to the council
Fernstrom thought that such a move
ment ON the part Of the councilman
from the Fifth was rather queer, as
there was no question but that when
the mayor had any matter that should
come before the council he would Ger.
tainly let them know about It. lie was
not al all surprised at the delay and
red tape on the prt of the company as
he said the city had had the same eX-
perlence On former bond sales, hence
there was no cause for alarm. A vote
was then tnken on the substitute mo-
ton Of Wells and It was carried.
SOME or THE LETTERS.
Following are the most important
communications which have passed be-.
tween the solicitor for the company
ana city Attorney Dey but the lat
ters last communication has not yet
been answered:
New York, March 90 1905. Hon. G. G.
Dey, Salt Lake city, Utah. My Dear
Sir. There are one or two questions
which lie IN the foreground, and would
seem TO me TO prevent the bonds in
question from being legally marketable.
In the first place your Constitution ppo-
Nides, art "A. par. A. chat any city or
town when authorized az provided In
section Of this article, may be allow
ell to incur a larger Indebtedness not
exceeding 4 per centum additional for
supplying such city OF town with water
artificial lights or sewers, when the
works for supplying such water, lights
and sewers shall be owned and CONTROL
ed by the municipality" You, how
ever, propose to incur an Indebtedness
on behalf OF salt Lake city without
such ownership and control when The
bonded indebtedness Is incurred. This
apparently Us conceded In your letter Of
March 10.
suppose you issue lhese ponds as pro-
posed ana you do NOT succeed lI' carry
ing ont the plan proposed IN regard U
the purchase OF water rights etc, $ol
nave then outstanding pohls OF sal
Lake city constituting am Indebtedness
ON which you promise To- pay lnteres
and yet YOU have no ownership or con
troll by the municipality of any work
for supplying water. what would %
the legal position of such oonddf ]
seems 10 me that litigation might a
once arise between the holders or ines
% s' ~ % e E @ 3. o @ :..s a S5on r SCI