Daily capital journal. (Salem, Oregon) 1903-1919, 1913-04-02
CITY LOSES $1,000
BY STRANGE DELAY
Nothing Yet Heard From Sew
er Bonds and Transcript
Reported Still Here.
ONE PER CENT ON $3sO,OOO
This Is the Loss Provided Bonds Draw
Per Cent-Salem People Are
Tired of Waiting.
ONE PER CENT ON $3.50, 900


which to prepare transcript in an ord
mary lawsuit, and after submitting it
to the printer to receive it but few
hours afterwards in due legal form,
why has it been necessary for the city
attorney to spend four months on the
transcript Of the sewer bond issue, mo.
tions and resolutions, when the work
could have been accomplished in one or
two days, at the longest, and the tax
payers of Salem saved one per cent up
on every dollar that is required to pay
the contractors for the work performed
on the sewers in South and North Sa.
lem and on the Union street main there
by7"
This is a question that no ordinary
follower of Salem's public affairs can
solve without feeling that something
--somewhere-or somehow is wrong or
that an unnecessary stumbling block
has either fallen or been placed in the
path of the progress of the sewer bond
issue voted upon by the people at the
last election, which should have been
settled, the bonds issued and the money
already paid in by the assessed property
owners refunded long ago.
1854 Gone.
So far, there has been lost to the tax.
payers of Salem not less than the sum
OF 1854 due to the long delay in for
warding the bond issue transcript to
the Eastern legal men to approve or
disapprove and send back. The people
of Salem, at no small expense, voted to
issue bonds for the payment of the sew.
ers constructed in the city in the past
two years, or thereabouts. The entire
amount aggregated some $3SO,OO0 AT
ter several prominent and responsible
bonding companies SHE'D from q propo'
,sition to take up the bonds, it was then
concluded by the city council to send
the entire matter to the eastern bond
lawyers for approval, with the hopes
that by so doing they would be declared
valid and good beyond doubt, and will
bs eventually taken up by some bonding
company in the east.
The city attorney was then directed,
about the 2lst of December, last year,
tU draw up a transcript of the action
taken by the council and the people,
and submit same to the parties in Bos'
ton While these articles were being
perfected, the city Of Salem has been
paying approximately 9 per cent upon
the entire amount of the warrants is
sued and still outstanding for the pay
ment of the contractors who built the
sewers which has been four months
and the amount Of interest at this PEI
cent will be $75OO. Considering con
servatively that it will require at leas
another month before the eastern at
torneys can return the transcript to tn
officials, another expense will be adde'
to the amount already entailed by in
terest at the rate OF 0 per cent or $1,000
totaling in all, for interest alone, $3.50
which is to be paid by the city and tn
taxpayers at large.
Had the bonds been approved in a
expeditions manner the interest on tn
outstanding warrants would hav
amounted to only $79l5, in view of tn
fact that the bonds to be issued woul
carry an interest of but 8 per cent; Tn
city thus being deprived Of the one pc
cent upon the entire transaction fC
five months, of 1884