The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1913-03-13
ANOTHER SUIT THREATENED

Another suit by William Rahr, ST.,
against city officials is threatened
Mr.. Rahr in communication to the
city council states that $l55, 900 of the
$3.50, 600 of original water works fuul
per cent bonds, issued in 1911 were
sold below par contrary to statute ant
ordinance. He asks that the counci
demand the mayor, treasurer and clerk
to restore to the city treasury sun
equal to the difference between pal
and the sum realized On the bonds
The price below par is computed by
charging to the price received for the
bonds the amounts paid to banks fol
commissions in the temporary finan
cling of the waterworks purchase about
October /, 1911, and some other ex
penses of the purchase. The Difficult
ties at that time grew out OF the in
ability of the city to sell the "fours'
in one block at par. The communica
tion states that if the money is not re-
turned suit will be instituted to com.
pei restoration. The following is Mr.
Rahr's communication:
TO the Honorable Mayor and Board
of Aldermen of the City of Mani
towoc:
The undersigned, citizen and tax
payer of the City of Manitowoc, re.
spectfully represents:
l. That the City of Manitowoc, un-
der an ordinance adopted July II, 1911
authorized the issue and sale of Ger.
tain municipal bonds of said city call.
ed "Water Works Bonds, land thereby
provided that said bonds should not
be sold by the City of Manitowoc for
any sum less than their par value
with accrued interest.
2. That thereafter and in due course
the City of Manitowoc by its proper
officers, executed $230,000 worth ol
said water works bonds and proce eeded
TO sell part OF them.
3. That the undersigned is inform
ed that in the sale of said bonds the
city of Manitowoc paid, or promised to
pay, certain sums to the purchasers
of some of said bonds, by way of SC
called commissions and by way of So
called expense, and by way of interest
in excess of the rate prescribed by said
ordinance.
4. That by reason Of the commits
sions paid, or promised TO be paid,
upon such bond sales by way of com
missions, expense and excess interest
the City of Manitowoc realized less
than the par value of its bonds solo
togetler 18th accrued interest here
on.
8. That so far as payments OF COM
mission, expense and excess interest
have been actually made and not mere
ly promised, they have been made up
on orders signed by the mayor and
clerk of said City Of Manitowoc which
orders were honored and paid by the
treasurer of said city, and that all OF
the acts of the mayor, clerk and treas
urer in connection with such pay
ments made were unlawful and with
out authority and contrary to the or
dinance under which said bonds were
issued, contrary to the statutes of the
state of Wisconsin.
6. That the undersigned is inform
ed that the mayor and clerk intend
to sign further orders end present
the same to the treasurer for payment
and that the city treasurer intends to
honor and pay such further orders
SO presented, for the disbursements of
other funds of the city in the payment
OF illegal commissions, expenses and
excess interest on such sales of water
works bonds.
Z. That it is the duty Of the city
and its board of aldermen to require
the repayment to the city of Manito-
voc of all sums disbursed in connec-
tion with the sale of said water works
bonds, to the extent that such dis
bursements have reduced the amount
received by the city for said bonds
to sum less than the par thereof and
accured interest thereon; and that it
is the duty of the city and its board
Of aldermen to prevent any further
disbursements of its funds by way of
commissions, expense or excess inter-
est in connection with sales mado or
to be made of its said water works
bonds, to the extent that such furth-
er disbursements would reduce the
amount received by the city for said
bonds to sum less than the par
thereof and accrued interest thereon.
s. And the undersigned hereby re-
quests your honorable body to make
such demands upon the mayor, clerk
and treasurer Of the city of Manitowoc
and to take such legal action against
them, as may be necessary in the pre-
misses to assure to said city the receipt
from the sale of its water works bonds
of the full par value thereof with ac-
crued interest.
WILLIAM RAHR, SR
A CORRECTION