Graham guardian., 1914-10-02
HIGH SCHOOL BONDS
New Election May Be Nee
essary for Construction
of Building

public may be informed concerning
necessary delay in getting down
to work upon our High School build
ing, perhaps statement from the
board of trustees is advisable. Our
architect has completed the plans
and will be here the last of this
week to go over them with the board.
We have purchased the Hampton
tract, have IA deed for the property
IN the name OF the school district
and the building will be built near
the southeast corner.
We cannot let the contract, nor
start the building as yet for the rea-
son that the bonds have been turned
down by the Denver attorneys for
the house that purchased them. For
this, we have no particular apology
or excuse to make. We took every
precaution possible to avoid such a
contingency. Knowing that bona
attorneys are very cautious and
technical, |, personally, encouraged
the board of supervisors to sell these
bonds at private sale before The is
sue was voted, in order that the
bond house might furnish the pro-
cedure. have it approved by their
attorneys before adoption, and we
would then, as we believed. he on
the safe side. This was done. The
board of supervisors entered into a
contract to sell the bonds at par
with secured interest, all procedure,
Autographed bonds and ballots to be
furnished by the bond house Sweet,
Causey, Foster & Co., of Denver,
Colo.
This house took the procedure
that has been used for the past two
years in Maricopa and Yavapai
counties, copied it verbatim, SUB
mitted it to their attorneys, had it
approved by them, and then for
warded it to us. We followed this
procedure to the letter.
The attorneys who approved this
procedure last April disapprove it in
September. They base their disap-
proval upon Chapter 2 of Title 81,
of the Revised Statutes, 1918, mani
festly intended only to apply to cases
where the aggregate Indebtedness
is to be increased to more than 4
per cent of the taxable property.
The procedure in our case, as it was
in Maricopa and Yavapai counties,
was taken from Chapter 8 of Title
II, the School Act. An examination
of Chapter 2 of Title So, in view of
a recent decision of the Supreme
Court may possibly make the pro-
cedure questionable, and these at,
torneys now advise that both acts
be followed, holding such to be the
only safe procedure.
have corresponded with both Mr..
Lyman and Mr.. O'Sullivan, county
attorneys of Maricopa and Yavapai
counties, and they both believe that
this adverse opinion is rendered
solely for the reason that bond houses
are seeking every available oppor-
tunity to avoid filling their bond
contracts on account of the financial
stringency caused by the European
war. Mr.. Lyman says that many
issues of bonds voted under the pro-
cedure have been floated, sold, ap-
proved by able attorneys and the
money paid in Maricopa county.
One of these issues was for $4,000.
Mr.. O'Sullivan says that one issue
of $95, 900 in Yavapai county was
approved under this procedure.
Other objections urged against the
legality Of these bonds at the time
of our election never at any time
had any weight with attorneys who
examined the procedure.
There are two possible remedies
for our present condition. One is
to hold another election. The other
is to persuade the Legislature to pass
a Curative Act early in the session
next January. 1t seems that since
the question has arisen, Curative
Act should be passed, and We believe
now that if the Legislature will pass
such an Act, that Sweet, Causey,
Foster & Company will be forced to
comply with their contract. They
deposited their certified check for
81 500 90 in the Bank of Stafford for
the purpose of holding the deal for
these bonds when the money market
was good. Now, when the money
market is bad, they ought to be
willing to stand by the contract if |
we make the bonds such that no set
of attorneys can honestly refuse to
approve them.
We shall determine within the
next few days whether or not an
other election IS advisable. If new
elec ctionsh all become necessary, we
hope the people of Stafford school
district will realize the necessity for
the new building more than ever. |
We have nearly forty pupils in our
High School. We are teaching four
grade rooms outside the main build
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