Gilpin observer., 1908-02-20
CITY DADS MEET.
Carve a Large Slice From the
Bonded Indebtedness Of
City-Other Business.

Gil neld thursday evening was called TO
order by Mayor Davies. Aldermen
present, Maloney, Richards, Gilman
and Carter; absent, Aldermen Peck,
Mckay, Wilkinson and Rule.
Minutes of last regular meeting read
and approved as read.
Matter of open cuts on Bates hill
was taken up for discussion. City At
torney Withrow stated that he had
talked with Mr.. Fullerton, the owner
of one of the claims, and that Mr.. Full
lerton was not willing to fence in the
cut on his property as the fences would
be torn down and carried away in a
short time, but if city desired it had his
permission to fill the open cut with
refuse. After much discussion in re-
gard to filling the cuts with ashes,
manure, etc, and as to whether or not
it would be nuisance to the people
living in that neighborhood, the matter
of filling same was left to the discretion
of the marshal.
During the discussion Alderman
Peck entered and took his seat.
In relation to sinking fund and the
placing of same on interest in the
banks, the city treasurer stated that in
compliance with instructions from the
council at last meeting he had seen the
cashiers of both banks and that they
were willing to take the money on the
certificate of deposit plan and pay
three per cent per annum interest on
the amounts. Treasurer also presented
proposition from the Rocky Mountain
bank, present holder of the bonds (for
which the sinking fund on hand and ac-
cumulating is reserved) offering to let
city have as many of the bonds as they
might desire to take up at premium of
two per cent.
Treasurer was asked by members of
council if there would be a saving of
any money to the city if the proposition
of the Rocky Mountain bank was ac-
cepted. Treasurer stated that the
bonds could not be called in by the city
before Sept. II, 1911 or for more than
three and one-half years and that they
bore interest at the rate of four and
one-half per cent per annum. In that
time the interest on each $1,000 in
bonds would be more than $751; 80
| (amount of interest on each 81, 900 for
exactly three and one-half years. said
interest to be paid in installments of
SD. 80 every six months on each 81, 600
of the bonds
The proposition of the Rocky Noun
tain bank is that the city pay it S1,O20
for each $1,000 bond. The saving to
the city on each $1,000 bond taken up
would be the difference between 81, 157
principal $1,000; interest Sl575O and
81, ,020 principal and premium) or
S137.50. If 1920, the amount required
to take up 81, 900 bonds be placed at in
terest in banks at three per cent per
annum, the interest for three and one
half years (provided the banks will pay
interest for portion of year on the
certificate of deposit plan) is SlO7. 10, a
net saving of $50. 40 on each bond taken
| up. Treasurer also stated that there
was sufficient cash now in the treasury
to take up $4,000 bonds, pay the prem
ium asked, and accrued interest unpaid
on that amount.
If 50, 900 in bonds are taken up and
cancelled there would be gross saving
to the city of nine times Sl37 so or
81, 237. so, and if 50, $50, the amount re-
quired to take up 50, OO0 90 bonds was
placed at interest in banks, the interest
would amount to 1868. 80, so by accept
ing proposition of holder of bonds there
would be net saving of S273.6O to the
city.
Alderman Mckay entered and took
his seat while the treasurer was talking.
City attorneys opinion on the matter
asked for, and he stated in effect that
that heretofore former councils, and
also the present council during the first
portion of their term of office-had used
money belonging to the sinking fund for
redeeming outstanding warrants, that
the money in that fund could not be
legally used for any purpose other than
for the redemption of the bonds, that il
was fortunate that the bonds were held
by home people, and if held by outsiders
or surety companies the city would long
ago have been compelled to discontinue
the practice of redeeming outstanding
warrants with money belonging to the
sinking fund, that the present holder OF
the bonds showed great deal of public
spirit in not insisting that the sinking
fund be kept and used only for the pur
pose for which it was collected, and tn,
council by. the action taken at the las
MISUNDERSTANDING the treasurer t.