The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-06-24
COUNTY MUST PAY
INTEREST Twice
Another BIunder of Commits
SiOnerS in Bond Deal
Comes to Light.

Another blunder of the county COM
missioners. whereby the county viii
have TO pay double interest on $780,
600 worth of bonds for forty days came
to light yesterday This blunder Of the
commissioners will cost the county
about 81 ,944 in interest.
County Treasurer w. o. Carbis. obedi-
ent to the instructions Of the commits
sioners. has sent out a call notifying
the holders of the present $350.OO0 worth
of bonds. which draw per cent inter-
est, that they will be taken up August
]. and that interest will cease after
that date. When the commissioners
gave Mr. Carbis these instructions,
however, they evidently had failed TO
read the following clause on the lace
Of each and every one of those per
cent bonds:
AND further. that whenever after ten
years from the date of this bond, the
county treasurer is prepared to pay the
same he shall notify by mail the owner
of such bond that that if not presented
for payment or redemption within forty
days after the date Of such nctlce, the
interest on suca bond shall cease
Will Charge for Forty Days
Mccormick & Co. who hold about $780,
| 900 worth of the per cent bonds for a
| client. have already Oeen advised by
( lawyers that they can ;h7rSe interest
on the bonds for forty days after Au-
/ gust / Notwithstanding the notice that
/ the interest viii cease on that date. A
small group of financial concerns here
/ and in the east hold the entire issue,
and it is expected that all of them viii
/ follow the example of Mccormick & Co
This means that the , per cent on
/ the S350, 600 worth of old bonds and the
/ AZ per cent on the $3.50, coo Will be run
ming at the same time for forty days
/ 1t means an extra expense to the coun-
/ " of about 81 944 in interest charges
The contract with z. H Rollins &
Sons. the firm which bought the new
issue specifically provides that the new
| bonds shall bear date of August / The
| representatives of the firm. when here
/ manipulating the sale, told the COM
/ missio toner's verbally that his firm would
/ paw any interest which might accrue
/ as a result of a delay in The delivery Of
4 bonds. but he made no promise, verbal
OF otherwise, that would meet an ener-
/ geney like this. and nothing was said
about paying interest that might accrue
/ as a result of GROSS stupidity on the
part of toe commissioners
Make Fat Profit.
Rollins & Sons have sent out cir
cular to insurance companies offering
10 sell the issue of $3.50 000 for S104 S71z
per 500 worth Of bonds. The firm paid
s1O2. SO per 800 worth for them. This
offer to the insurance companies means
that Rollins & Sons figure on proht
of S2.311g per 500 or S., 1920 on the en-
tire issue
One of the things that County Audi
tor l. NJ. Fisher criticised the board for
/ most severely was for not dealing di-
rectly with insurance companies and
i ether investors instead Of through the
agency of firm of bond brokers Had
this been done. Mr.. Fisher pointed out
the commission Of the middle man
would have been saved to the county
The commission, as stated, is SS.1O2.3O
which the county lost as a result ri
COnmissiC ner f. d. Miller's two junk
cts to Chicago at the county's expense
Miller Creates Smile.
Al the meeting of the Republican
county committee yesterday afternoon
| Commissioner Miller, who was present
was called upon FOR speech and -e-
sponded.
Il want to assure you, ger tlemen.
ne said, that the county Commissioners.
are doing all in their power to promote
the welfare and success Of the Repub-
lican party"
An almost audible smile went around
the roonl-a smile. which showed tia
! the country representative present haC
heep read the wonderful exploits of 7
D. Miller, bond expert and frenzies
inancier-
Mr.. Miller IS a candidate Cor renom
ination and reelection this fall