Evening journal., 1911-06-13
SOLICITOR SAYS
MR.. ROSS ERRED
Council and Not Treasurer
Should Have Deposited Bond
Issue Proceeds, he Says
COUNCIL SENDS COPY
TO STREET DEPARTMENT

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City Council met last night. having
adjourned from last Friday night. TO
receive the opinion Of City Solicitor
John W. Brady. on the legality of City
Treasurer Ross action in distributing
and depositing the S395,000 received
from the sale of bonds in the manner
he did OF this sum $250,00O was de-
posted by the city treasurer to the
credit of the Street and Sewer Depart
ment with a separate check for the
premium due that department, as in
terpreted by the treasurer
Mr.. Brady's opinion was that the
money should have been deposited 10
the credit of the Mayor and Council
and distributed by Council instead of
by City Treasurer Ross.
The Democratic members held a
conference with City Solicitor Brady
and Assistant City Solicitor Chaytor
in the Mayors Office previous TO the
Council meeting When the meeting
convened Mr. McGovern presented
Mr.. Brady's opinion. Il was accepted
and referred to the finance and law
committees and a copy was directed
TO be sent TO the Street and Sewer
Department The meeting then ad-
journed until Wednesday night
City Solicitor Brady's opinion is as
follows:
Wilmington. Del, June 10, 1911.
To the President and Members of
Councils
Gentlemen Referring to your re-
quest for an opinion concerning the
status of the premium, realized from
the recent sale of Wilmington City
Bonds. deposited by the City Treas
urer to the credit of the Street and
Sewer Department, we desire to sub
init the following:
The Act, (being Chapter $50, Vol
ume "a Laws of Delaware), entitled,
An Act to authorize The Mayor and
Council of Wilmington to borrow
money for the curbing, guttering, grad
ing, widening, paving and improving
of streets, and avenues and the build
ing of sewers and conduits, in the
city of Wilmington, Delaware. author
ICES The Mayor and Council of VIII
mington TO issue bonds of said city in
payment for certain curbing, gutter
ing. grading widening paving and inn
proving of the streets, avenues, lanes
or alleys, and the building of sewers
and conduits I'm the city of Whining
ton. The said Act, in making DISPOSE
ton of the money arising from bond
issue. provides. The money so borrow
ed to be paid into the city treasury,
and upon receipt of the same by City
Treasurer, he shall deliver the amount
OF the same TO the board of directors
of the Street and Sewer Department of
the said city of Wilmington.
The disposition of said premium
hingea upon the construction 20 be
placed upon the above quoted words,
In the case of another bond issue en-
titled. The Act entitled An Act to au-
tkorize The Mayor and Council OF Will
mington TO borrow eight hundred
thousand dollars for the purpose of
paying off any floating Indebtedness
and current liability in connection
with the water works system of tie
city of Wilmington, and for defraying
the cost of acquiring real estate and
water rights; and for the completion,
construction, erection and equipment
Of new reservoirs, filter plants, pump
ing stations, pumping engines, pipes,
mains and other appurtenan ses necfs-
sary for the completion and operation
of the reservoir and filtration plants in
water supply system OF the city Of
Wilmington, (being Chapter 179, Vol
ume "a Laws Of Delaware), in maxi
ing disposition of the proceeds realized
from the sale Of water bonds, provides,
The money received from the sale Of
said bonds shall be deposited by the
City Treasurer to the credit of the
Board of Water Commissioners in a
separate account
We have, therefore, two different
expressions Of the same Legislature,
as TO the disposition of the proceeds
arising from the sale of different
bonds authorized by the same Legis-
lature. Undoubtedly, in the latter
Act,
The money received from the sale
of. said bonds would include any pre-
mium from such sale. the words here
used being much broader than the
words employed In the Street and
Sewer Act under which the bonds in
question we're issued.
The statute authorizing the sale Of
the Street and Sewer bonds provides,
the Council of said city of Wilmington
shall fix the amount TO be borrowed
The Council subsequently, by ordi-
nance, authorized the issuance and
sale of said Street and Sewer bonds,
deciding that two hundred and fifty
thousand dollars were sufficient to the
needs Of that department at that time,
and authorized said amount TO be bor-
rowed The word borrowed" being
used in two different places I'm the
same act, and the Council fixing the
amount 10 be borrowed at two hun
dred and fifty thousand dollars. leaves
no ground for any other contention
than that the amount the Street and
Sewer Department was 20 receive
from said sale was two hundred anC
fifty thousand dollars only.
Throughout Chapter $50. Volume "a
the language used, would by reason
able construction, confine the amoun
which the Street and Sewer Depart
ment would obtain from the sale o
Bonds, to the amount which was Dor
vowed thereon, viz. Two hundred
and fifty thousand dollars, and woult
cRclude, by construction, any othel
money than the amount borrowed
that is the amount for which the citl
incurred indebtedness. The amoun
so borrowed could not exceed two
hundred and fifty thousand dollars
because bonds of the city of Whining
ton for that purpose we're issued tS
that amount only. and under thl
terms Of this statute the bonds were
10 be paid under the terms Of the
Sinking Fund Act, and under the lat
ter Act, provision is made for a deb
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