Show CITY WARRANTS WARRANT JOLTED AGAIN Frank Knox Finds Special Im Improvement Improvement provement Kind Undesirable Undesirable able Securities SO 50 SA SAYS Y A CONTRACTOR CANT GET FACE VALUE AT AJ ANY LO LOCAL AL BANK That special warrants of the city of Salt Lake are not do de investments for local banks was proved yesterday by Frank johnson of the contracting finn of johnson Bea om of Mont Even the National Bunk Danl of the Republic which is the money is afraid of them according to his statement He carrie came hel to bid on sidewalk work Bids were to be opened last evening but for some teason the date was vas postponed until Jul t IS 18 and he was not hot notified hill in iii the city he took to visit bankers and inquire at what he could dispose of the which would be issued to him himIn In iii for the work lie he be successful in his bid According to his story he visited Frank Knox hend of the National Bank 1 of the He and asked him what hiat th the ill would give for city special improvement warrants He Hesy I Iwa wa sy informed by bv Mr rr Knox that the bank did not desire to handle that kind of securities Asked the reason Mr lr Knox d declared that the flue warrants ran for a lon long time lime that interest was only 6 er cent and amid that the in cob col collecting them and amil securing pu ment from the tIt made them undesirable for banks to handle I 1 asked him said Mr r Johnson concerning the financial concH condi condition tion In general and lie declined to give a direct answer In fact all his hiB an were were eVAsive I Other Bankers Tell Same Story Mr Ir Johnson alo abo visited other local banks and at each place received the same is city warrants will not be accepted d at their face value or anywhere near it The experience of S Birch sidewalk contractor who was only able to dis dispose pose POM of hi his warrants to the state board of land commissioners after consenting to a 2 5 per cent discount on time the face value is only another fact which goes to show that under the present ire re reform form administration the credit of Salt Lake ha sunk to the lowest point in inthe inthe the history As a consequence of the policy and methods of the reform administration tion contractors are now prepared to bid to 20 per cent above the regular prices for all city work This Is made necessary by the fact that special dat cial improvement warrants must be besold besold sold at a heavy discount to secure money morey that the valIdity of many of these warrants is liable to be brought Into question by virtue of the thc certain excess In the dEbt limit of time the city before the taxes come in next Novem November November ber and Lecause contractors are weary of the trouble and delay in even securing securing ing the issuance of warrants Taxpayers Lose I It is generally generall conceded that the contingent fund will be heavily heally overdrawn on November 1 As a result all warrants issued above the actual revenue of the contingent fund will be illegal according to a constitutional provision and the contractors who hold these warrants wIll have to whistle for their mone money If any taxpayer er desire to start a contest As a result of the financial chaos into which the cIt city has been thrown b by the reformers the taxpayers will have to stand the difference between the actual value f the work to be done and the amount which the contractors contractor will n bid S |