The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-08-24
.C|TY.W|LL.SUE
FOR FORFEIT
/ Bonds are Legal Harris
Company Must Pay

Preliminary action will be taken at
the next meeting of the city council in
the disposal of the "bogie" which has
grown out of the refusal of the Harris
Trust & Savings bank to purchase the
city bonds for 100000 as per contract.
At the meeting an opinion of City
Attorney Cain as to the best course to
will be read and some definite
action is expected.
The latest excitement stirred up in
the matter arose over the disclosure of
the fact that the certified check for
s5400 which the Harris people deposit
ed with the city at the time of the
signing of the contract by way of show
Ing good faith, is not indorsed.
The fact of the matter is that the
wheight this has or. the proposition is
mill, for while the check is worthless
from a commercial standpoint, the city
is holder for value and can sue upon
it, for it's payment providing it is es-
tablished that the bonds in question
are legal.
With the Harris cOmpany's refusal
to accept the bonds and their request
that the certified check be returned,
there could be no possible hope with
the city that in order to secure the
amount of said check, the only action
necessary would be to present it at
the proper pay window, according to
city officials. That payment was
stopped on the check, they take as
certainty. The difference would be
! that eventually the city would sue the
bank on which it is drawn rather than
the Harris company, as it must now.
The check merely takes the place of
a bond. The fact that the city holds a
contract with the Harris company for
the purchase of the boLds in which it
is stated that the $54OO check be de-
posted with the city as a forfeiture
should the company fail in it's contract,
and the fact that this contract is duly
signed by the accredited representative
of the Harris people assures the city
Of the right to proceed in suit for re-
cOvery of the amount of the check if
the contract is not fulfilled.
Haste Causes Oversight.
It was owing to the rush in transact
ing the business the night the bids were
made and accepted hat the fact that
the check was rot indorsed was over
looked. The bidding was being done
and some excitement prevailed. Also
the Representatives of the various
bonding. companies were anxious TO
catch the 9:40 train out of Walla
Walla, all of which resulted in
considerable furry in the council
chambers on the fateful evening.
When the check was handed to Clerk
Hart, he Noticed it was unsigned and
handed it to the Harris company's
representative with the injunction to
sign it. The companys agent readily
consented and took the check from
Clerk Hart. Upon his returning it a
few moments later, it was deposited
in an envelope with the other docu-
ments relative to the transaction.
Representatives of the bonding COM
panies were then hurried out of the
building and taken to the depot in Or.
Braden automobile and the city fathers
heaved a sigh of relief which has since
proven unwarranted.
The fact that the check was un-
signed was not discovered until the
city received it's first intimation that
the Harris peoplee were getting cold
feet" Then the papers relative to the
case were taken out of the envelope
and in their perusal it was discovered
the check was not indorsei.
The steps which the city will prop
ably take in settling the matter VIII
be to institute a friendly suit for the
establishment of the legality or llle-
gality of the bonds. Should the court
hold the bonds illegal, of course the
matter will be dropped. Should II
hold them legal, the city Will proceed
to sue the Harris company, shoulu
such action be necessary, for the pay
ment of the check and so far as lts
Endorsement is concerned will proceed
with as much right as though the Sig
nature of any or all of the officials OF
agents were attached thereto.