Evening journal., 1911-06-02
tcontlnued from FIrst PaEel

the interest on the bonds up to the
date Of the settlement
The reason for my declining 20
take one check In a lump sum was
because TO do so would make it a
physical impossibilty for the city
treasurer to comply with the ordin-
snce Of City Council, providing for the
sS95,000 bond issue and specifying the
use for which each loan was intended,
and directing certain disposition 10
be made OF the money when paid
into the hands Of the city treasurer
MY action was based on advice Of the
city auditor, and after issue was
taken by the Equitable Guarantee and
Trust Company, by the advice OF my
personal counsel, Robert H. Rich
ards"
Mr.. NowIaud's Stntement.
Ohio Nowland, president Of the
Equitable Guarantee and Trust Com
pany. local agents for Kountze Broth
ers. the purchasers Of the bonds, said
today:
1--WE have received communications
from both the Mayor and City Solici-
tor instructing us to make settlement
for the bonds to the Mayor and Coun-
ell Of Wilmington and don't see how
we can do anything else"
Your counsel is OF the same opin-
ion," Mr.. Nowland was asked. He
replied in the Affirmative.
Mr.. Nowland was asked II he had
received any word from Mr.. Ross Of
a new proposition the latter had TO
make concerning the turning over OF
the money, and he replied that he had
not
What Ordinances Say.
The ordinance providing for the
issue Of S25O,0 bonds for the Street
and Sewer Department provides that
"the money, so borrowed. shall be
paid into the city treasury and upon
receipt OF the same by the city treas
urer he shall deliver the amount Of
the same 10 the board Of directors Of
the Street and Sewer Department Of
the city Of Wilmington, which said
board shall have supervision, manage
ment. direction and control Of the
work required TO be done with the
proceeds Of the sale Of said bonds and
the expenditure OF the money neces-
sary with respect thereto
The ordinance which authorized the
bond issue Of 900 10 redeem bonds
for that amount read I'm part as fol-
lows: THE money so received shall
be deposited by the city treasurer In
q special deposit in such bank in Will
mington as shall be the depository Of
the funds OF the city. and shall be
drawn therefrom upon the-proper
warrante OF the Council for the re-
demption Of said bonds"
The ordinance authorizing the issue
of Ir t..
part as follows. "The proceeds Of
such a sale shall be received by the
city treasurer. and the amount Of the
same shall be by him made the sub
ject Of a special deposit in such bank
at Wilmington as shall be the de-
pository Of the funds Of the city and
shall be drawn therefrom only upon
the proper warrant OF the CouHcil
for the purpose expressed An thid
ordinance" ~.
Council Was Stirreds
City Council sleoi fle elved cnna
aaunicatIona from tlse EQuifablt GUAR.
'ntee and TrH8f Company and from
90 lpf HHFNance reieti$e to the 1885,
NonH IE1sIe. which was disposed OF
f'te f|tT1to Kountze Brothers, OF
tEW Xfbk the money for which is now
H the hands Of the Equitable bank,
r,e.feady 10 be turned over TO the city
= when the bonds are delivered. City
y Treasurer Ross having held them up
Following the reading Of the com
munications, on motion Of Chairman
Kane. Of the finance committed, they
we're referred to the Council as a COM
mittee Of the whole, a recess being
taken to next Monday night
The communication from the bank
was as follows;
We have and are ready to pay to
the city of Wilmington, S410,S0s 81
upon the delivery to us Of the bonds Of
the city to the amount of S395000, for
which proposals we're recently adver-
tised. and which were awarded to
kountze Brothers. of New York whom
we represent. The amount named Is
the balance after deducting the 2 per
cent. already paid to the Mayor and
Council of Wilmington. in accordance
with the proposal, and includes inter
est from the date of the said bonds Ia
this day. We have so advised the city
treasurer, who has refused to deliver
the bonds to us, unless We will draw
several checks in manner prescribed
by him. We are advised by counsel. az
well as instructed by the city solicitor
that check for the amount named
should be drawn to the order of tn,
Mayor and Council OF Wilmington, JUS
as the two per cent. was paid. on tn,
presentation and acceptance Of the biz
for said bonds. as required by tn,
form OF proposals. We are prepared I,
pay this amount at once on the deliv
cry to Us of the bonds at our bankin,
house, OF II desired. will take the salt
bonds up II deposited for delivery 4
us at the Union National Bank Of thi
city.
Yours very respectfully,
"Otho Nowland, Pres,
Equitable Guarantee and Trust Co.
The Mayors Letter.
The Mayors letter bearing on tn
subject follows;
L hereby transmit TO you for sue
action as shall to you seem appropr
ate, a communication just received \
me, as Mayor of the city Of Wiminl
ton, relating to the issue Of city bond
recently awarded to Messrs. Kount7
Bros. Il is within your power 10 81
that the city officers perform the
duties and prevent the embarrassment
to its affairs by authority given yo
by the charter Of the city.
The bond issue and settlemel
therefore. in my judgment, should M
be further delayed BY the delinquenc
Of any city official
y. Harvey Spruance. Mayor"
Mr. Kane addreeqinR Council said