Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-04-07
WOULD TAKE UP OUTSTANDING
WARRANTS WITH AZ PER =
CENT BOND ISSUE.
CLOSE DEAL THURSDAY
FOR BOND SALE AT PAR
Act For Legislature Neces-
sary Before Bonds Can 30 Issued
Bill to Do This introduced in Lesis-
Iature Today-6ond Issue to Run
Ten Years From May I.

i The unpaid outstanding city war
issue, provided no hindrance to the
plan prevents it being carried out.
steps We're taken by the council at a
special meeting held late Thursday af-
bonds will be issued to take up these
unpaid warrants. Before the city can
/ do this an act Of the general assem- :
bly, will have to authorize it.
To secure this legalizing act an at
torney was sent to Des Moines Thurs
day, for the purpose of getting the bill
introduced today. SO that speedy action
on it can be secured before the general
ASSEMBLY adjourns.
Close Bond Negotiations.
This legalizing act is all that now
stands in the way of this bond issue.
A. the council meeting negotiations for
the sale Of the bonds were closed with
the banking house Of George NJ. Bech-
tel & Co. of Davenport. A resolution
introduced by Herman closed the nego-
tiations for the purchase of $4,000, or
any part of that amount Of city bonds
at par, the interest to date Of delivery
to be added. The bonds are to draw
~ per cent interest, payable on May
and Nov. 1 Of each year. The bonds
are to run for ten years. They are to
be dated May 1, 1911, expiring on May
], 1921.
Purpose to Raise oMney.
This bond issue has a double purpose.
1t is for the purpose Of retiring the
city's outstanding warrants that have
not been paid for a lack Of funds. to
stop the s per cent interest these war
rants have been drawing from the date
Of issue, and to furnish money for the
current business OF the city.
In addition TO the saving that will be
made by substituting AZ per cent
bond issue for s per cent warrants the
new council will have money with
which to do the citys business. To
have paid the warrants from current
funds would leave next to nothing to
co business with, and would mean the
accommodating of more warrants draw
ing per cent. Mayor Jones said this
ton involved whether or not the city
could appropriate money raised by
taxes for the current city's business to
the payment Of old warrants.
$4,000 Of Unpaid Warrants.
The amount OF unpaid warrants has
increased under the examination Of the
city's accounts made by Mayor Jones
within the last week over any sum ever
made public by the old administration.
/ The total is close to $4,000. OF this
sum s2,S1S Is represented by old paw
ing warrants that have never been
paid. About $4,000 more is represented
by warrants that have really never
been issued At least they still remain
in the warrant book of the city clerk
These latter are not drawing interest as
those in whose favor they We're issued
have never called for them. The per-
sons in whose favor they are made out
are really responsible for their never
having been issued. as it is not consid-
cred part Of the city clerks duties to
deliver warrants in person.
Goes Beyond Legal indebtedness.
Neither Mayor Jones or Councilman
Herman attempts to make any pre-
| tense but that the issue of $4,000 re-
funding bonds will increase the city's
Indebtedness to beyond the legal limit
by approximately 100000 This city
now has outstanding bonds to the
amount Of $4,000. All of these bonds
dra; - - cent. The new issue will
lnc.e>5e the bonded debt to $4,000,
but regardless Of the fact that the new
issue Will exceed the city's legal limit
or Indebtedness it was the only way out
OF the financial situation inherited
from the past administration that
Mayor Jones saw. 1t became case of
either paying outstanding warrants
and the interest due on them and
leaving just that much less for current
expenses, or taking care of current ex-
penses and continue to pay a higher
rate of interest on the old warrants.