Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-12-12

ACTION TAKEN To
PREVENT ISSUING
Of PAVING BONDS


against the present paving program
was filed in the district court here
yesterday by ]. G. Albright. The ac-
ton was brought against Walter Con-
nell, chairman Of the city commission
and ex-officio mayor of Albuquerque;
J. NJ. Reynolds, ]. T. Mclaughlin
Thomas Hughes and f. r. Swope,
commissioners; the FL Paso Bitulithic
company, a corporation. and the city
Of Albuquerque. municipal corpora
ton.
on November 10, 1919, ordinance
No IS was passed by the Albuquerque
city commission. The ordinance provid-
ed for the issuance of paving bonds by
the city, to be exchanged for n like
amount of assignable certificates
which "have been or will, be issued"
to the contractor constructing street
and alley improvements in said city"
Among other things, the ordinance
provides for the form in which the
bonds and attached coupons shall be
| issued. A portion OF the clause per-
tanning thereto follows:
This bond is paya BILE solely out of
a special fund designated The Albu-
querque Paving Fund containing the
receipts derived by the city from spe-
cial assessments levied to pay for said
! improvements. And it is hereby certi-
| fled and recited that for the payment
of this bond the city of Albuquerque
assumes no obligation whatsoever, eX-
cept for the creation OF said paving
| fund. the collection and enforcement
of all special assessments levied to pay
for said improvements. and deposit in
said fund all receipts derived from said
special assessments, and the payment
Of this bond out OF such receipts in
the manner provided by the ordinance
under which this bond is issued"
Stripping the complaint of its legal
verbiage and getting down to every
day language, it is to the effect that
the city "bit off more than II could
chew" when II obligated itself to en-
force collection "of all special assess
ments levied to pay for said improve
ments"
H. B, Jamison, who is attorney for
the plaintiff was loath to discuss the
case yesterday but when pressed for
statement outlining the gist of the
complaint and some OF the contentious
% his client said:
The complaint filed by Mr. Al
bright alleges that the ordinance
city of Albuquerque, giving the Btu
lithic company certain bonds in ex-
change for paving certificates, is null
and void and of no effect, because said
ordinance and the bonds issued in pur-
suance thereof pledges the city to coll
lect and enforce all paving assess
ments whereas the city has no power
to pledge itself to collect and enforce
all paving assessments and because in
all probability paving assessments
cannot be collected and enforced
ut further alleges that upon a
100000 paving contract, such as the
Bitulithic company has, the bonds of
the city of Albuquerque which are
promised to be issued by this ordi-
nance will be worth approximately
$4,000 more than the paving certifi-
Gates which the Bitulthic company
will give in exchange for said bonds
and the Bitulithic company will give
no consideration whatever for said
$4,000; and that they well know that
great financial disadvantage of the
city Of Albuquerque and to their own
financial advantage.
THE complaint concludes with q
prayer for order to show cause why a
temporary Injunction should not be
issued restraining the city and its COM
missioners from issuing any of the
proposed bonds and why, on final
hearing, this Injunction should not be
made permanent"
City officials yesterday declined TO
comment on the legal aspects of the
case. except that Chairman Connell |
said the bonds in question have been
sold by the Ell Paso Bitulithic COM
pany to Sidlo, Simon, FEELS & Co, bond |
brokers of Denver, and that concern
Of this kind certainly would not make.
an investment of this magnitude with
out knowing that everything in con-
nection Herewith was all right. He |
said an attorney representing the /
company was here few weeks ago
and complimented the city on the ac-
curate and legal manner in which the /
paving proceedings had been con-
Quoted.
In regard to the $25, 900 which the
complaint alleges somebody is going to
make out of the sale of the bonds, Mr..
Connell said the city would save the
property owners in the paving zone
much more than this amount in in
terest payments. The city received
two offers for the bonds, he said, one
bearing per cent interest on deferred
payments, with the understanding that
the bond company act as collector and
the other bearing per cent on de-
ferred payments the city acting as col
lector. Inasmuch as the city could
handle the collections without incur
ring any additional expense, the latter
offer was accepted, which will mean
considerable of a saving to the prop
erty owners who are affected by
paving.
The city was given until December
20 to show cause why an injunction
should not be issued