Bisbee daily review., 1907-08-17
ERBONDSARE PAID FOR BY
 BANKERS
TechnicaIitieS Are at Last Overcome and Money Is De- posted to Credit of City After Many Delays.

In the various bands of the city 1 there is on deposit to the credit of the
 city of Bisbee the sum of $SO.OO0, the cash payment for the sewer bonds
 which were voted by the taxpayers oi the municipality more than a year
 ago, and all that remains to be done | is to secure bids from various con
 tractors on the construction of the
 drainage system already planned, be
 fore the actual work of construction
 is commenced.
 It was thught for a time that the
 local banks, which had agreed to take
 the bonds, would wait until Judge
 Joseph Dillon, of New York City. had rendered his final opinion, because oi
 the fact that the securities only carry 6 per cent interest, whereas tho local financial institutions have nc trouble in getting on an average oi 10 per cent. for loaned money. How. ever, the officials of the banks noti fled the mayor and council that they would take the bonds in order to hasten as much as possible the work
 of constructing the sewer, and it was
 so arranged.
 The Miner & Merchants Bank
 placed to the credit of the city of
 forty bonds, each with a principal of
 5000, and carrying 6 per cent. inter- est; the First National Bank took twenty-five bonds, depositing S25, 900, and the Bank of Bisbee took the re-
 nlaining fifteen bonds, extending a credit of $15.O0O. The bonds are num- bered consecutiyely. and will be taken
 ID in numerical order, the first four expiring at the end of five years from the date. and each successive for in each successive year.
 Immediately after the money was placed to the city's credit the city mayor, telegraphed A. H. Olmsted, of Los Angeles, the engineer who planned the proposed system, stat ing that the sale of the bonds had been completed, and that the council now awaited instructions from him in regardrt to the advertising for bids for the construction of the system. It is probable that instructions will be re- ceiyed within the next few days on this point, and immediately a meet ing of the city council will be called for the purpose of passing the resolu- tiOn to advertise for bids. Taking these facts into cGGsideratiOn. it is not improbable that the actual work of eXcavating for the mains will be com menced within the next sixty days. and by next summer Bisbee will be the pOssessOr of a sewer system.
 If one reviews the various circum- stances surrounding the task of dis posing of the sewer bonds after they had been voted favOrably upon by the taxpayers at an election held for that purpose. fl is not surprising that the delay has been a rather long one In the first place, the bonds were adyer- tised, and the only bid received was from a firm that failed to comply with the requirements of the proposal, and the bid was disTegaTded. It was then proposed to advertise the bonds again. but at this junctuTe a number of citizens took the matter up with the local banks in an endcayOr to get them to accept the bonds. At first the bankers were backward because of the low rate of interest and the length of time for which it was to run. but finally agreed to take them.
 The bonds were then readvertised to make everything regular and the banks bid. through the Miners and Merchants Bank. Next the bonds were sent to a firm of attorneys in Chicago for ar opinion as to their and after several weeks were returned with the opinion that they were void because of a technicality in the law. An examination of the statutes showed that the Chicago at torneys erred in their opinion, and then the records in the matter were sent to Judge Joseph Dillon. of New York. probably the most prominent bond authority in the United States.
 In due time they were returned with his approval. and were then sent to the engravers, who consumed sixty days in finishing them.
 From these few facts it can be seen that the matter has beer disposed of as quickly as possible.