The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1921-01-27
HOLD CITY BONDS
AS GOOD AS GOLD
Chicago Expert on Bond
Issues Puts Sanction
on S250,OOO Issue.
BANK WILL TAKE THEM
Bonds May Go to First Nation
al Bank After Decisions of
Attorney Chapman.

The Kenosha city bridge bonds, is
sued sometime ago to provide funds
for the completion of the new bridge
over Main street, are as good as gold
and they will be taken by the First
National Bank, which was the highest
bidder for them at the sale held last
fall. This was the announcement
made in official circles this morning
and it came as promise of consider
able relief to the financial condition
of the city.
The announcement followed the. re-
port on the validity of the bonds made
by Attorney Chapman Of Chicago,
member of the firm of Chapman, Cut
Ter & Parker, of Chicago, on whose
opinion the sale of the bonds was
based. Mr. Chapman had some time
in the past questioned the validity of
the bonds in telephone opinion, but
in his new opinion holding that the
city has met all legal requirements in
the issuance of the bonds he holds
that the telephone message was given
without an examination into some of
the Wisconsin statutes under which
the bonds were issued by the common
council.
Slater Opinion Is Upheld.
The decision of the Chicago expert
is in complete accord with the opinion
of City Attorney John c. Slater, who
held at the time Of the issuance of
the bonds that the city had acted en-
tirely in keeping with the Wisconsin
statute. The First National Bank bid
on the bonds with the understanding
that the ultimate sale of them was to
be made by the Harris Trust company
of Chicago. The question of validity
was raised on account of the fact that
when the question of the bond issue
was submitted to the people it, was
stated that the bonds would bear an
interest rate of $50. When the bonds
were ready for sale, it was found to be
impossible to sell them at the $50 in
terest rate. The rate was increased
to $50 and the fnanciers who dabbled
in the bonds declared that this could
not be done. Attorney Chapman, holds
that there is nothing in the Wisconsin
law to prevent the city council making
the change in the interest rate and
that for this reason the bonds are
valid.
Bank to Get Bonds at Once.
eve have been advised that the
First National Bank will take these
securities just as soon as the city
delivers them," said Attorney Slater
this morning. "The decision of Mr..
Chapman is of interest and of value
to other Wisconsin cities as it clearly
outlines the rights of city councils in
regard to bonds under the Wisconsin
law. The holding is the same which
gave to the council when the ques-
tion of the validity of the bonds was
raised"
Officials declared that even with the
sale of the bonds, Kenosha would not
have an "overstuffed" city treasury.
1t was declared that the money re-
ceived from the sale of the bonds
would be applied directly to the pay
ment for the work on the bridge. Many
plans were held in allegiance by the
members Of the finance committee on
account of the failure of the bonds to
be sold. It is just possible that this
added amount of money will make pos
sible doing few things during the
coming year which the officials held
impossible before, but only a small
mount Of increase may be made to
any of the city appropriations,