Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1915-08-20
MAY AVOID SPECIAL
ELECTION ON BONDS
CREATED BY SIT.
PREME COURT DECISION is
STUDIED BY OFFICIALS.

SlNDlED BIZ OFFICIALS.
That it very likely will not be nec-
essary to call another special election
to authorize bond issue, if the city
administration decides to proceed
again with its plan for the municipal
ownership of the local waterworks,
is the growing belief among city Off
cials, after consideration of the de-
cision handed down by the supreme
court Tuesday declaring the previous
issue illegal.
The officials incline to the opinion
that the ordinance passed after the
special election two years ago, limit
ing the issue to 100000, may either
be amended to permit of an issue of
100000 if necessary to cover all ex-
penses, or be repealed and a new or
dinance passed, on the theory that
what the people voted on in the orig
inal special election was not the spe-
cific amount Of the bond issue but the
ratification of the municipal owner
ship plan.
1t is generally taken for, granted
that the city administration will re-
sumo the proceedings, though when
seen Thursday Mayor Mottman de-
clined to make any statement as to
his policy with reference to the sit
uation, saying there were a number
of questions that had to be deter
mined. Chief among these is whether
the city can find a market for the
issue now that the supreme court has
ruled that it cannot pay the $4,000
commission it had agreed to pay
when the original sale was effected.
Attorneys for the city and the bond
buyers, John e. Price & Co., are
studying the decision to determine
what course the city may pursue.
$3.50 in Warrants Issued.
Meanwhile, the validity of total
of $s,370.5e in city warrants, $5,-
547.S3 against the general fund Of
the city and $1,S22.73 against the inn
provement districts in the southern
part Of the city. where new water
mains have been laid, has been called
into question as the result of the de-
cision. City Attorney Bigelow holds
to the view that they are legal and
City Treasurer Julia Waldrip says
they will be paid in the regular order,
unless some taxpayer should succeed
in enjoining the payment Of the war
rants. All we're issued in connection
with the municipal water department.
OF this total of more than $1,000,
approximately $4,1S2.69 was paid out
as the cost Of the condemnation pro-
ceedings against the water works,
while the balance is for labor and
material involved in laying the new
water mains in the paving districts In
the southern part of the city. Neither
of the local banks will cash the war
rants, the Olympia National having
followed that policy for the last few
months and the Capital National from
the outset, the latter, according to
President c. J. Lord, having had the
firm belief from the start that the
warrants were illegal. belief which
Mr.. Lord says has been confirmed by
the supreme court decision.
Another question raised by the de-
cision is whether the condemnation
already had still hold. In
case the city proceeds with the plan
of acquiring the waterworks. some
attorneys having expressed the opin-
ion that the bond issue having been
declared illegal, all the proceedings
in connection with it are likewise
illegal. II that theory is substan-
i;ated, the result will be that another
suit will be necessary.
Decision Handed Down Tuesday.
The decision, a distinct surprise
and a hard blow to the city admins
tration which, after three years
fight, seemed to have things prac-
tically in shape to take over the local
was given by the su-
preme court Tuesday in the friendly
suit brought by George H. Uhler.
local real estate man and taxpayer,
on behalf of John E. Price & Co., Sc
attic bond buyers, who had agreed to
take the issue, to test the validity OF
the bonds.
When the suit was brought in the
local superior court. the city entered
a demurrer and it was sustained Dy
Judge D. F. Wright and the case was
then taken to the supreme court for
final adjudication. The decision was
the unanimous verdict Of the judges
composing the department to wnicn