The daily sentinel., 1909-10-21
WHO WILL GET
BOND ISSUE?
Statement OF the Contentious OF Each
Side in the Controversy Over the
S65,000 Refunding Bond Is
sue of Grand Junction.
TO BE FOUGHT OUT IN COURTS

The announcement last night in
The Sentinel of the serving of the
temporary restraining order on Orson
Adams. the Mesa County National
bank. and the city officials, prevent
ing them from making a sale of the
S65,000 issue of refunding bonds, TO
any other person or corporation than
to William E. Sweet. of Denver, caus-
ed much surprise and no little com
ment.
Mr.. Adams, president of the Mesa
County National bank. who has the
contract with the city for the pur-
chase of the bond issue. does not be-
lieve that Mr.. Sweet will be able to
make the restraining order perma-
nent.
Mr.. Adams very clearly sets forth
his position in the matter. He has
been endeayoring ever since contract
ing for the refunding bonds to locate
all of the outstanding or old bonds.
Not until recently had the legal pro-
cedure necessary been completed in
such shape that the new bonds could
be delivered. He has succeeded in
calling in about S47 900 of the old
bond Issue. These bonds have been
sent in first TO the Mesa County Ma
tional bank and then forwarded by
this bank to the Colorado National
bank in Denver
1t seems that j. H. Causey & Co.
of Denver, had agreed to take the
new bond issue, that this company
was to deposit 5000, in addition
to the premium, etc, to the credit of
the Mesa County National bank, sub
iect to the orders of the city treasurer
1 H..I. IL
National bank was to first deduct
from this sos. 900 deposited with it,
the $4,000 to cover the redemption
of the old bonds sent in, with inter-
est. and to send this money to the
various banks that had turned in the
outstanding or old bonds.
IT seems that there was a hitch
over this program as outlined by Mr..
Adams. Causey & Co. did not want
to leave the difference between the
SAT 900 and its accrued interest and
the SOS, 900 in the hands of the city
as Mr.. Adams contended should be
done. Mr.. Adams declined to deliver
the bonds to the company unless this
was done. believing that he could find
market elsewhere for the bonds.
Now it seems that William f.
of Causey Co. and he proceeded to
take steps to force the city of Grand
Junction and Mr.. Adams TO deliver
the bonds to him acting for the
Causey company.
In the court proceedings in Denver
Attorneys McMullin & Sternberg and
Attorney A. NJ. Stevenson. the latter
of Denver viii represent the Mesa
County National bank and Mr..
Adams. None of the expense of the
litigation will fall on the city itself.
1t is announced
There is some uncertainty as to just
how William f. Sweet became inter
ested in the bond deal so quickly.
The $65,OOO bond issue was auth
orized by the people of Grand june
ton at a special election last June
and was for the purpose of refunding
the same amount of old or outstand-
ing bonds.
Mr.. Sweets position is outlined in
| the following statement which ap-
| peared in yesterday mornings Den
yer News:
Suit to compel the fulfillment of
contract for the purchase of s65. 900
worth of refunding bonds has been
| filed in the district court by William
| II. sweet oil Denver against OrSon Au-
ans of the Mesa County National
Bank. the city of Grand Junction and
the city council of Grand Junction.
An injunction to prevent the Grand
Junction authorities from disposing
of the bonds to any other person has
been asked by the plaintiff, who says
that he is ready to take SAT 900
worth of the bonds at the present
| time
According to the plaintiff, Orson
Adams, as agent of j. II. Causey &
Company of Denver. entered into ne
gotiations with the Grand junction
authorities for the purchase of bonds.
Outstanding bonds were to be called
in. and an issue of $65 900 worth of
refunding bonds was authorized.
Causey. through Adams, was to pur-
! chase the bonds. Subsequently
Causey disposed of his interest to
| Sweet. The delivery of the bonds
was to be made at the Colorado Ma
/ tional Bank. Sweet claims that
| $4,000 worth of the outstanding
bonds have been called in, and that
ne is now ready to take that amount
of the refunding bonds, but that the
city authorities decline to make the
delivery. He also says he has learned
that they intend to dispose of the
bonds to some other person in de-