The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-10-09
BUSINESS MEN
AID COUNCIL
Committees Appointed 10
Float City Bonds

After a lengthy discussion of the
matter of the floating of the city hall
! bonds at the meeting of the CONNER
cial club last night the matter was
disposed of by the appointing of
committees.
A committee was appointed to act in
conjunction with the city council and
| take such steps as they shall deem
/ fit to float the city hall bonds. This
| committee is composed of Ber. Holt
F. A. Garrecht, r. H. Johnson and Os-
car Drumheller.
"A second committee was appointed
| to ascertain how many of the bonds
can be placed at the present time, or
! what money, if any, can be obtained
i by temporary issue of city warrants.
This committee is to report to the
first committee. 1t is composed of
Max Baumeister, George Ludwigs, B.
F. Simpson, Henry Osterman ard ].
P. Kent.
That the bonds could be placed if
they had not first been refused by
! the two trust companies on the
grounds of the non-legality, was evil
dent. To settle this, it was the i'm
preston of many at the meeting last
night that the proper thing to do, was
/ to institute a suit in the courts to
J
determine the legality of the PROPOSE
ton. This however would take too
much time the club decided, and other
means are to be investigated.
Bonds Are Good.
! Attorney H. S. Blandford in ad-
dressing the club, said there was no
doubt at all in his mind but that the
bonds are legal and that they had been
refused for entirely different reasons
by the trust companies. The money
market has tightened since the bonds
were placed on the market and the
trust companies have simply found
they cannot handle the bonds at the
price they agreed to. To get out of it
they brought up the matter of legality.
claiming the city has already passed
her limit of indebtedness. This, how
ever, Mr.. Blandford said, was not the
case, as the water bonds are not in
cluded in the general indebtedness of
| the city. but are a special issue for a
particular purpose and cannot be in
! cluded in the city's general indebted
ness. The case is covered by nllme-
rous decisions of the supreme court
and has been decisively settled by that
JUDICIARY. The Rollins firm. he said,
evidently had the same reason for
| turning down the bonds. as when thev
first asked for them, they said thev
knew all about the matter and be-
l1eved it legal. Later. however. when
the money market tightened. they cast
about for an excuse and used the same
one. as there was no other.
Attorney Garrecht concurred in the
opinion of former City Attorney Bland
ford. and said in his opinion there was
no question but that the bonds were 1e-
gal and that they were turned down
purely for financial reasons. The mat
ter has been sufficiently established.
he thinks. by the supreme court of the
state, to need no further investiea-
ton.
Despite the opinion Of these two at
torneys. and the written opinion signed
by Goes & Goes. Garrecht & DUMMY.
and H. S. Blandford. there were some
who were skeptical as to their legality.
There has lot been an attorney in the
city who has expressed himself other
than that the bonds are legal. Harris
& Co. refused them on the strength
of a decision in the Missouri courts.
The Washington laws state the matter
distinctly and in the case of Vancou-
yer. the city was allowed to make its
own statement of what of their funds
had been expended for lights, water,
etc. ever. though there had been no
special issue, as in the case of Walla
Walia
Holloway Wants Friendly Suit.
c. K. Holloway, president of the
! Walla Walla Fire Insurance company,
thought he best way out of the mat
! ter to bring a suit which would es-
tablish once for all. the question of