Show MUST CITY WARRANTS Contractors Forced to Sell City Script at 5 Per Cent Reduction BIRCH SUfFERS BIG LOSS LAND COMMISSION ONLY MAR MARKET MARKET KET FOR PAPE That the best price that contractors can secure for city special Improvement war warrants warrants rants is 15 55 ii cents on the dollar was agaIn Illustrated yesterday when S Birch side sidewalk sidewalk walk contractor sold worth of warrants to the state board of land corn com commissioners missioners for The discount on the lot deprived Birch ot of ot of the money for which ho he contracted to do the work Some time ago Birch d tx be sell his warrants at the banks The NatIonal Bank of at the Republic arid and the Deseret National bank refused to handle them at any price although the former InstItution Institution Is the deposItory depositary for city funds and the tho latter for state funds The heads of at both concerns realized that while the warrants were practically safe they were not a desirable Investment at this thin time because of at the precarious financial condi condition lion tion ot of the city under the American reform rule Other banks offered to buy th the warrants at tram from 10 to 20 per percent percent cent dIscount The contractor then ap appealed appealed pealed to F S J Leonard chairman of 01 the board ot of pu Ua works worl l Leonard went to the state board of at land commissioners and declared that Birch would sell for OS 98 Had to to Accept Big Discount This offer after was refused and then Leon Leonard Leonard ard In behalf offered to sell at 97 91 This was also refused finally a compromise was reached and Birch and the board entered Into a contract by bythe bythe the terms of which Birch to sell to the board worth of 01 warrants at tG per cent of at their face value The installment taken up yesterday was the second under the contract The pre prevIous sale amounted to This Is one of the reasons why the successful bid ot of Birch on sidewalk ex ext extensions t tensions the contract for which was re no recently awarded was walS 23 per cent hIgher the bid for the same sarno wk made by him last March It moons means that be because because cause of the financIal status of at the pres present exit ent administration that property properly owners will have to pay 23 per cent more for theIr sidewalks Other contractors have had the same experience as Birch Kennedy has thou thousands thousands sands ot of dollars worth of warrants which he Is compelled to hold and so have Mo Moran ran and Percival Perchal The banks will not take them arid and the state board ot of land commissioners offer the only market at ata ata a S 6 per cent discount |