HomeMy WebLinkAbout03693 ORD - 03/17/1954t
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CIM ISTI
On this the : Nday of March, 1954, the � City Council
of the City of Corpus Christi, Texas, convened in A." . J" , meeting,
with the following members of said Council present, t-/wit:
A. A. Lichtenstein, Mayor,
J. S. Naismith,
Ellroy King,
Commissioners
P. C. Callaway,
W. James Brace,
T. Ray Kring, City Secretary
Russell E. McClure, City Manager
I. M. Singer, City Attorney
with the following absent: (±-.,� , constituting a
quorum, at which time the fol)lowing among other business was transacted:
Mr. , "L presented for the consideration of
the Council an ordinance. The ordinance was read by the City Secretary. The
Mayor presented to the Council a communication in writing pertaining to said
proposed ordinance, as follows:
Corpus Christi, Texas
March ,-1954•
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas.
Gentlemen:
For the reasons set forth in the emergency clause of the
foregoing ordinance, a public emergency and imperative necessity exist for
the suspension of the Charter rule or requirement that no ordinance or
resolution shall be passed finally on the date it is introduced, and that such
ordinance or resolution shall be read at thrse meetings of the City Council.
I, therefore, hereby request that you suspend said Chaster rule or requirement
and pass this ordinance finally on the ds�e it is introduced, or at the present
meeting of the City Council.
Respectfully,
Isl A. A. Lichtenst °_in,
Mayor
City of Corpus Christi, Texas.
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M5
° J
Commissioner. made a motion that the
i
Charter provisions prohibiting ordinances from being passed finally on the
date introduced be suspended for the reasons stated in the written request of
the Mayor and stated in the emergency clause of the ordinance. The motion was
seconded by Commissioner The motion was carried by a
unanimous vote by the City Council, viz:
AYES: Commissioners Naismith, King, Callaway and Brace.
NAYES: None.
Commissioner .�,;L, ^,_�, made a motion that the
ordinance be passed finally. The motion was se onded by Commissioner
The motion was carried by the following vote:
AYES: Commissioners Naismith, King, Callaway and Brace.
Aye. This was done.
NAYES: None.
The Mayor requested that the records show that he voted
The Mayor announced that the ordinance had been passed.
The ordinance is as follows:
ORDINANCE NO. 30.0
AUTHORIZING THE ISSUANCE OF FIRST MORTGAGE WATERWORKS
REVENUE BONDS IN THE AMOUNT OF $7,000,000.00 FOR TIM
PURPOSE OF IMPROVING AND EXTENDING THE WATERWORKS
SYSTEM; PLEDGING THE NET REVENUES OF THE CITY'S WATER-
WORKS SYSTEM; AUTHORIZING THE EXECUTION AND DELIVERY
OF A DEED OF TRUST SUPPLEMENT TO THE DEED OF TRUST
SECURING CITY OF CORPUS CHRISTI FIRST MORTGAGE WATER-
WORKS REVENUE REFUNDING BONDS, SERIES 1953, SUCH SUPPLE-
MENTAL DEED OF TRUST PROVIDING TEE SECURITY FOR THE
BONDS AUTHORIZED BY THIS ORDINANCE; ORDAINING OTHER
MATTERS RELATING TO THE SUBJECT AND DECLARING AN
EMERGENCY.
WHEREAS, on November 5, 1953, the City Council of the
City of Corpus Christi, Texas, passed an ordinance calling an election to be
held within and throughout the City on the 24th day of November, 1953, on
propositions, including the following:
"PROPOSITION NO. 1
'Shall the City Council of the City of Corpus Christi,
Texas, be authorized to issue the bonds of said City in the
amount of $8,000,000.00, maturing serially in such installments
as may be fixed by the City Council, the maximum maturity beinj
not more than Thirty (30) years from their date, bearing inter-
est at a rate not to exceed Five (50) per cent per annum, for
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; and
the purpose of improving and extending the City's Waterworks
System, to be issued in accordance with and secured in the
manner provided in Article 1110a and Articles 1111 -1118, both
inclusive, of the Revised Civil Statutes of Texas, 1925, as
amended, and as permitted by the ordinances and Indenture
authorizing and securing the presently outstanding waterworks
revenue bonds, each bond to be conditioned that the holder
thereof shall never have the right to demand payment of said
obligations out of funds raised or to be raised by taxation,
secured by a pledge of the net revenues from the operation of
said system, a deed of trust lien on said system and the pledge
of a franchise to operate said system for a term of not exceed -
iing twenty years in event of sale after default as provided in
the power of sale contained in said Mortgage."
WHEREAS, Notice of said election was given in accordance
with law by posting for a period of not less than fifteen (15) days prior to
said election at the City Hall, and at each of the voting places specified in
said ordinance, and by publishing such notice in the official newspaper, being
a newspaper of general circulation published within the City of Corpus Christi
in the issues of said paper, viz: November 7, 1953 and November 14, 1953;
said publication having been made on the same day in each of two successive
weeks prior to the date of the election, and the date of the first publication
having been not less than fourteen (14) days prior to the date fixed for the
holding of said election; all of which facts are further evidenced by affi-
davits duly executed and on file with the City Secretary; and
WHEREAS, at said election which was duly held the resident,
qualified electors who own taxable property in said City, and who have duly
rendered the same for taxation voted in favor of said proposition, as is evi-
denced by an ordinance passed by the City Council on the 25th day of November,
1953, declaring the results of said election; and
WHEREAS, heretofore in accordance with the provisions of
the Constitution and laws of the State of Texas and the Charter of the City,
the City Council authorized the issuance of City of Corpus Christi, Texas,
First Mortgage Waterworks Revenue Refunding Bonds, Series 1953, (hereinafter
called the "Series 1953 Bonds "), in the principal amount of $3,831,000,00,
dated December 1, 1953, with interest payable June 11 1954) and thereafter
semi - annually on December 1 and June 1 of each year, maturing serially as more
fully set forth in the ordinance authorizing the issuance of said bonds; and
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WHEREAS, for the purpose of securing the payment of the
Series 1953 Bonds, and for the purpose of providing for the fixing in more de-
tail the rights of the holders thereof, and of the City and of the Trustee,
and for the purpose of making an effective deed of trust lien on the City's
Waterworks System and the lien of said bonds on the revenues of the waterworks
system, the ordinance authorizing the issuance of the Series 1953 Bonds
authorized the execution of a deed of trust (hereinafter called the "Deed of
Trust ") to be dated as of December 1, 1953, by and between the City and
Mercantile National Bank at Dallas, as Trustee, (hereinafter called the
"Trustee "); and
WHEREAS, Section 14 of the ordinance authorizing the
issuance of the Series 1953 Bonds contains the following provision:
; and
"14. Additional Waterworks System Revenue Bonds may
be issued to be secured by a pledge of the revenues and a lien
upon the properties of the Waterworks System and upon the
franchise of the System of equal dignity with the pledge and
liens securing the Waterworks Revenue Refunding Bonds, herein
authorized, provided that such Additional Waterworks Revenue
Bonds shall be issued for improvements or extensions or repairs
or replacements of and to the Waterworks System or for any one
or more or all of such purposes, subject to the limitations con-
tained in Article c[S of said Deed of Trust, hareinabove in
Section 11 made a part of this ordinance."
WHEREAS, prior to the delivery of the bonds authorized by
this ordinance said Deed of Trust has been duly executed by and between the
City and the Trustee; and
WHEREAS, all of the things required to have happened, to
have been done, and to exist under Section 2.05 of Article 21 of the Deed of
Trust as a condition precedent to the authorization and issuance of the Bonds,
have happened, been done, and do exist, including the following:
(1) This ordinance authorizing the Bonds prescribes the
date, prescribes the bank or banks at which the principal of and interest on
the Bonds are to be payable, interest rates, maturity dates, and other details
necessary to identify the Bonds, the purposes for which the proceeds are to be
used;
(2) A Supplement to the Deed of Trust as is authorized in
this Bond Ordinance properly identifying the Bonds shall be executed and the
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Bonds shall be authenticated by the Trustee before their issuance shall have
been completed; and
WHEREAS, as required, all of the certificates and other
showings evidencing existence of facts and performance of conditions required
under Section 2.05 of the Deed of Trust shall be filed prior tothe authenti-
cation of the Bonds by the Trustee; and
WHEREAS, in order to bring the Bonds authorized by this
ordinance under the terms of the Deed of Trust, and for other purposes herein-
after in this ordinance specified, it is proper that a Supplement to the Deed
of Trust be executed; and
WHEREAS, in order to make possible improvements and ex-
tensions to the City's Waterworks System it is deemed advisable that
$7,000,000.00 of said above described bonds for such purposes be authorized
and issued, reserving to the City the right to later issue the remaining
$1,000,000.00 of bonds voted for such purposes;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
1. That the findings and statements contained in the
preamble to this ordinance are true and correct.
2. That for the purpose of providing funds to improve and
extend the waterworks system of the City of Corpus Christi there shall be
issued First Mortgage Waterworks Revenue Bonds of the City of Corpus Christi,
Texas, in the amount of $7,000,000.00, under authority of the Constitution and
laws of the State of Texas and the Charter of said City, which bonds and the
interest thereon shall be payable from the revenues from said waterworks system
and secured by a deed of trust on said system and by a pledge of an operating
franchise in the event the properties comprising said waterworks system are
sold after default, all as more specifically hereinafter provided.
3. That said bonds shall be called "City of Corpus Christi
First Mortgage Waterworks Revenue Bonds, Series 195+ "(hereinafter sometimes.
called the "Bonds "), shall be dated February 1, 1951, shall be in the denomi-
nation of One Thousand ($1,000.00) Dollars each, and shall be numbered One (1)
to Seven Thousand (7,000), both inclusive.
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4. The Bonds shall be registerable as to principal at the
option of the holder on the books of the Registrar upon presentation of the
Bonds to such Registrar. The Trustee is hereby appointed Bond Registrar.
Such registration shall not only be noted on the books of such Registrar kept
for such purpose, but shall be noted by such Registrar on to Bonds so register-
ed, and after such registration no transfer of a Bond so registered shall be
valid unless made on the books of such Registrar by the registered holder or
his legal representative, thereunto duly authorized, and similarly noted on
the bonds. Bonds registered as to principal may be discharged from regis-
tration by being transferred to bearer after which they shall be transferable
by delivery, but may be again registered as to principal as before. Bonds not
so registered, or which have been so transferred to bearer, shall be in all
respects negotiable. The registration of Bonds as to principal shall not
restrain the negotiability by delivery of the coupons attached thereto.
5. (a) That the Bonds shall bear interest payable June
1, 1954, and thereafter semi - annually on December 1 and June 1, at the follow
ing rates:
Bonds Nos. 1 to 1085, both incl., 34% per annum;
Bonds Nos. 1086 to 7000, " 3% per annum.
(b) Each of the Bonds of this issue is to be subject to
redemption prior to maturity on June 1, 1964 and on any interest payment date
thereafter at a price of par and accrued interest to date fixed for redemption
plus a premium of 21% of the principal amount. Notice of intention to redeem
Bonds is to be published in a financial publication in the City of New York,
New York, and in the official newspaper of the City of Corpus Christi, at least
once, not less than thirty (30) days before the date fixed for redemption, and
thirty (30) days' notice in writing prior to the date fixed for redemption 1 s
to be given to the bank or banks of payment. If, by the date fixed for re-
demption, funds shall have been made available sufficient to pay any Bond so
called for redemption and accrued interest thereon plus the premium specified,
it shall not thereafter bear interest. In the event less then all of the Bonds
outstanding then eligible for prior redemption shall be thus called the Bonds
then proposed to be redeemed shall be called in their inverse numerical order.
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6. Both principal and interest shall be payable iri lawful
money of the United States of America at Mercantile National Bank at Dallas,
Dallas, Texas, or at the option of the holder at the Chemical Bank & Trust
Company, New York, New York, upon the presentation and surrender of proper
Bonds and coupons.
7. Such Bonds shall mature serially as follows:
BONDS NUM13ERS
MATURITY DATES
AMOUNTS
1 to
250, both
incl.,, June 1,
1965,
$ 250;000.00
251 to
515, "
June 1,
1966,
2c5,000,00
516 to
795, "
" June 1,
1967,
280,000,00
796 to
1085, "
June 1,
1968,
290,00'x,.00
1086 to
1385, "
r June 1,
1969,
300,000,00
1386 to
1695, "
" June 1,
1970,
310,000.00
1696 to
2020, "
" June 1,
1971,
325,000,00
2021 to
2355, "
" June 1,
1972,
335,000.00
2356 to
2705, "
June 1,
1973;
350,000,00
2706 to
3065,
June 1,
1974,
36o,00mo
3066 to
3440,
June 1,
1975,
375,000.00
3441 to
3830,
June 1,
1976,
390,000.00
3631 to
4235,
June 1,
1977,
4o5,000.00
4236 to
4655,
June 1,
1978,
420,000.00
4656 to
5090,
June 1,
1979,
435,000.00
5091 to
5540,
June 1,
1980,
450,000.00
5541 to
6010,
" June 1,
1981,
470,000.00
boll to
6495,
June 1,
1982,
485,000.00
6496 to
7000,
June 1,
1983,
505,000.00
8. That each of such
Bonds shall be signed by the Mayor
of Corpus Christi,
shall be attested by the City Secretary,
shall have the
corporate seal of the City impressed thereon, and shall be authenticated
by
the Trustee
in the
manner provided in the
Deed of Trust after
compliance with
the requirements
set forth in Section 2.05 thereof, and in the manner prescrib-
ed in Supplement to
the Deed of Trust for
which provision is
hereinafter made
in this
ordinance.
Interest falling due on and prior to maturity shall be
represented by appropriate interest coupons tobe attached to
such Bonds, which
coupons
shall bear
the facsimile signatures of the Mayor and
the City Secretary,
and said
officials,
by the execution of such Bonds, shall adopt as and for their
own proper signatures
their respective facsimile
signatures
appearing on said
coupons,
9. That such Bonds, the coupons to be thereto attached and
the endorsements to appear thereon, shall be substantially in the form shown
in the Deed of Trust and in the Supplement thereto, hereinafter in this
ordinance authorized.
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10. That the Waterworks System of the City- of Corpus
Christi shall be operated by the City and the revenues thereof shall be applied
and the Bonds herein authorized shall be paid in the manner set out and provid-
ed in the Deed of Trust, and all of the provisions of said Deed of Trust shall
be effective and shall be applicable to the authorization, issuance and pay -
went of the Bonds and to the operation of such Waterworks System with like
force and effect as though all of said provisions were otherwise than in the
Deed of Trust separately set out in this ordinance.
11. To identify and bring the Bonds under the tnrm=_ of
the Deed of Trust, evidence the fact that the Bonds are secured by liens upon
the revenues, the properties constituting the Waterworks System, and on the
franchise to operate such properties in the event of sale after default, of
equal dignity with the liens securing the Series 1953 Bonds, and for the pur-
pose of fixing in further detail the rights of the holders of such Bonds, and
the rights and duties of the City and of the Trustee, a Supplement to the
Deed of Trust, hereinafter called the "Supplement" in substantially the follow-
ing form and language is hereby authorized to be executed and delivered on be-
half of the City of Corpus Christi:
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SUPPLEMENT TO DEED OF TRUST
THE STATE OF TEXAS .
COUNTY OF NUECES
THIS SUPPLEMENT TO DEED OF TRUST, (hereinafter called
"SUPPLEMENT ") dated as of February 1, 1954, by and between the City of Corpus
Christi, a municipal corporation duly organized and existing under and by
virtue of the laws of the State of Texas, situated in Nueces County, Texas,
(hereinafter sometimes called "CITY "), acting through its Mayor and City
Secretary, duly authorized by ordinance (hereinafter sometimes called the
"Series 1954 BOND ORDINANCE ") passed by the City Council on March 17, 1954,
PARTY OF THE FIRST PART, and MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS,
a national banking association duly organized and existing under and by virtue
of the Banking Laws of the United States (hereinafter sometimes called
"TRUSTEE "), PARTY OF THE SECOND PART:
WITNESSETH:
WHEREAS, heretofore as of December 1, 1953, the City and
the Trustee executed an instrument of trust, hereinafter sometimes called the
"Deed of Trust ", primarily for the purpose of securing $3,831,000.00 in prin-
cipal amount of "City of Corpus Christi First Mortgage Waterworks Revenue Re-
funding Bonds, Series 1953 ", in the denomination of $1,000.00 each, numbered
from One (1) to Three Thousand Eight Hundred Thirty One (3,831), both in-
clusive, and bearing interest at Three and one -half (3-2%) per cent as shown
in the Deed of Trust; and
WHEREAS, Section 2.05 of the Deed of Trust provides for
the issuance by the City of additional Bonds which when issued in accordance
with such provisions shall along with the Series 1953 Bonds be secured ratably
by a first lien on the properties, revenues, and franchise constituting the
trust estate, as more fully described in the Deed of Trust; and
WHEREAS, pursuant to an authorizing election the City
Council has passed an ordinance (hereinafter sometimes called "Series 1954
Bond Ordinance) of which this Supplement is a part, authorizing the issuance
of additional bonds in the principal amount of $7,000,000.00, for the purpose
of providing funds for improvements, extensions, repairs or replacements of
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and to the City's waterworks system (hereinafter sometimes called the "Series
1954 Bonds "); and
WHEREAS, the Series 1954 Bonds authorized by said Series
1954 Bond Ordinance when issued are to be secured by said Deed of Trust in
like manner and with like effect as if issued concurrently and contemporan-
eously with the Series 1953 Bonds; and
WHEREAS, said bonds are payable as to both principal and
interest in lawful money of the United States of America at the Mercantile
National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at
the Chemical Bank and Trust Company, New York, New York, and to mature
serially as follows:
BONDS NUMBERS MATURITY DATES AMOUNTS
1
to
250, both incl.,
June
1,
1965,
$250,000.00
251
to
515, "
June
1,
1966,
265,000-00
516
to
795,
June
1,
1967,
280,000.00
796
to
1085, "
June
1,
1948,
290,000.00
1086
to
1385,
June
1,
1969,
300,000,00
1386
to
1695, "
June
1,
1970,
310,000.00
1696
to
2020, "
June
1,
1971,
325,000.00
2021
to
2355, " "
June
1,
1972,
335,000.00
2356
to
2705, "
June
1,
1973,
350,000,00
2706
to
3065,
June
1,
1974,
36 0,000.00
3066
to
3440, "
.Tune
1,
1975,
3=1 5,000.00
3441
to
3830,
June
1,
1976,
390,000,00
3831
to
4235,
June
1,
1977,
405,000.00
4236
to
4655, "
June
1,
1978,
420,000,.00
4656
to
5090,
June
1,
1979,
435,000.00
5091
to
5540,
June
1,
1980,
450,000.00
5541
to
6010,
June
1,
1981,
470,000.00
6011
to
6495,
June
1,
1982,
485,000.00
6496
to
7000, "
June
1,
1983,
505,000.00
WHEREAS, the Bonds and the interest coupons and certificates
to appertain thereto, and the form for registration of the Bonds as to princi-
pal, the Comptroller's certificate, and the Trustee's certificate, to be en-
dorsed thereon, are to be in substantially the following forms, respectively,
with appropriate insertions, omissions and variations as in this Supplement
provided:
NO.
UNITED STATES OF AMPRICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
FIRST MORTGAGE WAP??W02K9 R;VENUE BOND
SERIES 1954
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$11000.00
THE CITY OF CORPUS CHRISTI, a lawfully created and exist-
ing municipal corporation in NUECES COUNTY, TEXAS, out of revenues hereinafter
specified, and from no other source, FOR VALUE RECEIVED, hereby promises to
pay to bearer, or, if this Bond be registered as to principal, to the register-
ed holder thereof, on June 1, 19 , the principal sum of
ONE THOUSAND DOLLARS
($1,000.00), and, from said revenues to pay interest thereon from the date
hereof until the principal amount of this Bond shall have been paid at the
rate of (*%) per cent per annum, payable on June 1, 1954, and thereafter semi-
annually on December 1 and June 1. Both principal of and interest on this
Bond are payable in lawful money of the United States of America, at Mercantile
National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at
Chemical Bank & Trust Company, New York, New York. Interest maturing on and
prior to the scheduled maturity date of this Bond is payable only upon presen-
tation and surrender of the interest coupons hereto attached as they severally
become due.
THIS BOND is one of a duly authorized issue of Bonds of
like date and tenor, except as to serial number, interest rate and maturity,
in the amount of $7,000,000.00, (being part of an authorized issue of
$8,000,000.00), issued for the purpose of improving and extending the water-
works system of the City of Corpus Christi, Texas, as authorized at an election
held in said City on November 24, 1953, and pursuant to ordinance passed by the
City Council of the City of Corpus Christi, and secured by a Deed of Trust
dated as of December 1, 1953 and by Supplement to said Deed of Trust, dated as of
February 1, 1954, both collectively hereinafter sometimes referred to as the
Deed of Trust, by and between the CITY OF CORPUS CHRISTI and MERCANTILE
NATIONAL BANK AT DALLAS, DALLAS, TEXAS, (hereinafter referred to as the
"TRUSTEE "), as Trustee, an original counterpart of such Deed of Trust being on
file in the office of said Trustee in the city of Dallas, Texas, reference to
which ordinance and Deed of Trust is hereby made for a description of the funds
charged with and pledged to the payment of the interest on and the principal
of the Bonds, the nature and extent of the security thereof, and a statement
of the rights, duties, and obligations of the City and the Trustee and the
rights of the holders of the Bonds, to all the provisions of which Deed of
Trust the holder hereof by the acceptance of this Bond assents.
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THIS BOND shall not be deemed to constitute a debt of the
City of Corpus Christi or a pledge of its faith and credit, but shall be pay-
able as to principal and interest solely from the net revenues derived from
the operation of the Waterworks System, including all additions, extensions
and improvements thereto which may hereafter be made, hereinafter referred to
as the "System ", and the holder hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be raised by taxation.
This issue of Bonds is further secured by a lien upon the properties compris-
ing the System and, in the event of default and the sale of such properties
under provisions of said Deed of Trust, by a franchise to the purchaser to
operate such properties for a period of twenty years. The City of Corpus
Christi hereby covenants and agrees that it will fix and maintain rates and
charges for services to be rendered by the System sufficient to pay all
operating, maintenance, depreciation, replacement, betterment and interest
charges, and to provide an Interest and Sinking Fund sufficient to pay the
principal of and interest on the issues of Bonds of which this is one as such
principal and interest matures, all in accordance with Article 1113 of the
Revised Civil Statutes of Texas of 1925 as amended, sad to create and main-
tain the several funds as prescribed in the Deed of Trust.
Each of the Bonds of this issue is subject to redemption
prior to maturity on June 1, 1964 and on any interest payment date thereafter
at a price of par and accrued interest to date fixed for redemption, plus a
premium of 2.2-%0 of the principal. Notice of intention to redeem bonds is to
be published in a financial publication in the City of New York, New York, and
in the official newspaper of the City of Corpus Christi, at least once, not
less than thirty (30) days before the date fixed for redemption, and thirty
(30) days' notice in writing prior to the date fixed for redemption is to be
given to the banks of payment. If, by the date fixed for redemption, funds
shall have been made available sufficient to pay any bond so called for re-
demption and accrued interest thereon plus the premium specified, it shall not
thereafter bear interest. In the event less than all of the bonds outstanding
then eligible for prior redemption shall be thus called the bonds then proposed
to be redeemed shall be called in their inverse numerical order.
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THIS BOND is issued and the above mentioned Deed of Trust
was made and entered into under and pursuant to the Constitution and Laws of
the State of Texas.
THIS BOND may be registered as to principal only in accor-
dance with the provisions endorsed hereon.
EACH SUCCESSIVE holder of this bond during such time as
it is payable to bearer, and each successive holder of each of the coupons
hereto attached, is 66nclusively presumed to forego and renounce his equities
in favor of subsequent holders for value without notice, and to agree that
this bond while so paybble to bearer, and each or the coupons hereto attached,
may be negotiated by delivery by any person having possession hereof, howso-
ever such possession may have been acquired, and that any holder who shall have
taken this bond or any of the coupons from any person for value and without
notice, thereby has acquired absolute title thereto, free from any defenses
enforceable against any prior holder and free from all equities and claims of
ownership of any such prior holder. Neither the City of Corpus Christi nor
its officials nor the paying agent hereinabove named shall be affected by any
notice to the contrary.
TO THE EXTENT permitted by law and the aforesaid Deed of
Trust, modifications or alterations of the Deed of Trust and any Deed of Trust
supplemental thereto may be made, with the consent of the City Council of the
City of Corpus Christi and the holders of at least seventy -five per cent in
principal amount of the Bonds then outstanding, but such modification or
alteration is not permitted to affect the maturity, amount or rate of interest
of any such outstanding Bonds. The Deed of Trust provides for acceleration of
the maturities of all of the Bonds then outstanding in the event of a default.
The City reserves the right to issue additional parity
revenue bonds (including the remaining voted bonds in the amount of $1,000,000
not being issued at this time) to the extent and in the manner exp:esely per-
mitted by said Deed of Trust and the ordinance authorizing the issuance of City
of Corpus Christi First Mortgage Waterworks Revenue Refunding Bonds, Series
1953, in the amount of $3,531,000.001 and in the ordinance authorizing the
Bonds of which this is one. Such additional bonds shall be payable from the
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same source and secured by the some revenues, deed of trust, properties, and
pledged franchise,and shall be on a parity with this issue of bonds.
In the event the City later exercises the right to com-
bine the operations of its waterworks and sanitary sewer systems reserved to
it in Section 2.06 of said Deed of Trust, the said Revenue Refunding Bonds,
Series 1953 and the Bonds of this issue, together with any additional water-
works bonds subsequently issued and any revenue bonds theretofore or there-
after issued for sanitary sewer purposes, to the extent and in the manner per-
mitted by law at such time, will be payable from the revenues of the combined
systems, including all additions, extensions and improvements thereafter made
to said combined systems, and, if so authorized by law and prescribed by the
City, may be further secured by a mortgage on the sanitary sewer system.
IT IS HEREBY CERTIFIED AND RECITED that all acts and
things required by the Constitution and Laws of the State of Texas, and the
Charter of the City, to happen, exist and be performed precedent to and in
the issuance of this Bond and the passage of said ordinance and the execution
of the supplement to said Deed of Trust, have happened, exist and have been
performed as so required.
THIS BOND shall not be entitled to any benefit under said
Deed of Trust or the supplement thereto or become valid or obligatory for any
purpose until it shall have been authenticated by the execution by the Trustee
of the certificate hereon endorsed.
IN WITNESS WHEREOF, the CITY OF CORPUS C'.L4ISTI has caused
this Bond to be signed by its Mayor and attested by its City Secretary, and
the corporate seal of said City to be impressed hereon, and has caused the
coupons hereto attached to be executed with the facsimile signatures of said
officials all as of February 11 1954, the date of this bond.
Mayo;, City of Corpus Ca.isti, Texas.
ATTEST:
City Secretary, City of Corpus Christi, Texas.
(CITY SEAL)
*(Bonds Nos. 1 to 1085, both incl., 3—k% per annum;
Bonds Nos. lo86 to 7000, " 11 3% per annum.)
(FORM OF COUPONS)
NO. $
On the 1st day of , 19�, the City of
Corpus Christi, Texas, Nueces County, Texas, will pay to bearer at the
Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the
holder, at Chemical Bark & Trust Company, New York, New York, the sum of
($..) Dollars, in lawful money of
the United States of America (unless the Bond to which this coupon is attached
is previously called for redemption as therein provided and provision for the
redemption thereof made)* payable out of the revenues specified in the Bond to
which this coupon is attached, for the interest in that amount then due on its
First Mortgage Waterworks Revenue Bond, Series 1954, and numbered The
holder of this coupon shall never have the right to demand payment thereof out
of any funds raised or to be raised by taxation,
Mayor.
ATTEST,
City Secretary.
*(This parenthetical provision should be inserted only in coupons maturing
subsequent to June 1, 1964).
(TRUSTEE'S CERTIFICATE)
This Bond is one of the Bonds described in the within
mentioned Supplement to the Deed of Trust,
MERCANTILE NATIONAL BANK AT DALLAS
DALLAS, TEXAS
Trustee:.
BY
Authorized Office_.
(FORM OF COEPTROLLER'S CMTIFICATE)
OFFICE OF COMPTROLLER
REGISTRATION NO,
STATE OF TEXAS
I HRREBY CERTIFY that there is on file and of record in
my office a certificate of the Attorney General of the State of Texas, to the
effect that this Bond has been examined by him as required by law, and that
he finds that it has been issued in conformity with the Constitution and Laws
- 7 -
of the State of Texas, and that it is a valid and binding special obligation
of the City of Corpus Christi, Texas, payable from the revenues pledged to its
payment by and in the ordinance authorizing same, and said Bond has this day
been registered by me.
(SEAL)
WITNESS MY HAND and seal of office at Austin, Texas,
C mptrollar of Public accounts of the
State of Texas.
(NO WRITING TO BE MADE HFI?EON EXCEPT
BY THE BOND REGISTRAR OF THE CITY)
URTIF'ICA E OF REGISTRATION
It is hereby certified that, at the request of the holder
of the within bond, I have this day registered it as to principal in the name
of such holder as indicated in the registration blank below and on the books
kept by me for such purpose. The principal of this bond shall be payable only
to the registered holder hereof named in the below registration blank or his
legal representative, and this bond shall be transferable only on the books of
the Bond Registrar and by an appropriate notation in such registration blank.
If the last transfer recorded on the books of the Bond Registrar and in the
below registration blank shall be to bearer, the principal of this bond shall
be payable to bearer and it shall be in all respects negotiable. In no case,
shall negotiability of the coupons attached hereto be affected by any regis-
tration as to principal.
NAME OF REGISTERED HOLDER DATE OF REGISTRATION SIGNATURE OF R7;GIS7RAR
('IrusteeT_
AND WHEREAS, the execution and delivery of this Supplement
have been duly authorized by the City Council of the City of Corpus Christi and
all acts and things required to be done precedent to and in the execution of
this Supplement and precedent to and in the execution of said Bonds, have been
done and performed in regular and due time, form, and manner as required by
the Constitution and Laws of the State of Texas, and the 1954 Bond Ordinance;
NOW THEREFORE, in order to secure the payment of principal
of and interest on the Bonds according to their tenor and effect, and the
terms of the Deed of Trust and this Supplement, and to secure the performance
of the covenants and obligations contained in the Deed of Trust and in this
Supplement, and in consideration of the acceptance by the Trustee of the trust
hereby created, and of the purchase and acceptance of said Bonds by the
holders thereof, and of One Dollor ($1.00) in hand paid by the Trustee to the
City upon the execution and delivery of this Supplement, the receipt whereof
is hereby acknowledged, the City has executed and delivered this Supplement
with the effect that all of the properties, revenues, rights and the franchise
heretofore granted, bargained, sold, conveyed, assigned, transferred, warranted,
mortgaged, pledged and set over to the Trustee under and by virtue of the
Deed of Trust, are hereby declared by the City to be for the use and benefit
of the Series 1954 Bonds in like manner and with like efficacy as for the use
and benefit of the Series 1953 Bonds, in such manner that said pledged revenues,
liens and franchise, are for the equal and proportionate benefit, security, and
protection of all Bonds of both series and the interest coupons appurtenant
thereto as well as for bonds and interest coupons hereafter to be issued under
and secured by the Deed of Trust, within the amounts and under the conditions
expressly prescribed by the Deed of Trust, without priority or distinction as
to lien or otherwise of any Bond over any other Bond, or over any other bond
properly issued under the Deed of Trust by reason of priority in issuance or
negotiation thereof, or by reason of the date or dates of maturity thereof, or
for any other reason whatsoever, so that each and all of said Bonds and bonds
heretofore issued or hereafter to be issued as aforesaid shall have the same
rights, lien and privileges under the Daed of Trust.
This Supplement further witnesseth, that the City has
agreed and covenanted, and does hereby agree and covenant with the Trust(3
and the respective holders from time to time of such Bonds and coupons, as
follow:
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ARTICLE I
FOAM, AUTBENTICATION, REGISTRATION AND ISSUANCE OF BONDS
Section 1.01. The Bonds and the coupons attached thereto
shall be in substantially the forms hereinbefore recited, and shall be issued
in the aggregate principal amount of Seven Million Dollars ($7,000,000.00).
all Bonds to be secured hereby shall be signed by the Mayor of the City, shall
be attested by the City Secretary, shall have the corporate seal of the City
impressed thereon, and when so signed and sealed, the Bonds shall be submitted
to the Attorney General of the State of Texasfor approval and to the State
Comptroller for registration. After the said Bonds have been approved by the
Attorney General and registered by the State Comptroller, they shall be deliver-
ed to the Trustee for authentication and delivery to the City as provided in
the ordinance authorizing the issuance of the Bonds and authorizing this
Supplement.
Section 1.02. In case any officer or officers who shall
have signed any of the Bonds shall cease to be such officer or officers of the
City after delivery of such Bonds to the Trustee, but before the Bonds so signed
shall have been actually authenticated and delivered to the purchaser thereof,
such Bonds may nevertheless be authenticated and delivered as though the person
or persons who signed and sealed such Bonds had not ceased to be such officer
or officers of the City.
Section 1.03. The coupons to be attached to the Bonds
shall be signed by the facsimile signatures of the Mayor andCity Secretary
in office at the time of the signing of the Bonds, and delivery of such Bonds
thereafter shall be valid for all purposes even though one or both of said
officials shall have ceased to hold office at the time of delivery. Prior to
the authentication of Bonds under this Dead of Trust all matured coupons
thereto attached shall be detached and cancelled and such cancelled coupons
shall be delivered to the City Secretary.
Section 1.04. Only such of the Bonds as shall have endors-
ed thereon the duly executed certificate of the Trustee substantially in the
form hereinabove set forth shall be entitled to any lien or benefit hereunder,
but such certificate of the Trustee upon any Bond shall be conclusive evidence
that such Bond has been duly authenticated. and delivered hereunder and that the
holder is entitled to the benefit of the trust hereby created.
- 10 -
Section 1.05. In case any Bond issued hereunder with the
coupons appertaining shall become mutilated or be lost, stolen or destroyed
prior to the payment thereof, a new Bond, including coupons, of like tenor and
date and bearing the same number may, at the discretion of the City and the
Trustee, to the extent permitted by law, be executed, certified and delivered
either in exchange for and upon cancellation of the mutilated Bond and its
coupons, or in substitution for the Bond or coupons lost, stolen or destroyed,
but such exchange or substitution shall be made only upon receipt of satis-
factory evidence of lose, theft, or destruction of such Bond and its coupons,
proof of ownership thereof, satisfactory indemnity to the Trustee and the City,
and payment of the cost of preparing such bond and coupons.
ARTICLE II
PROOF OF COMPLIANCE WITH PREREQUISITES TO ISSUANCE OF BONDS
Section 2.01. The City covenants that at the time or prior
to the time it will submit to the Trustee any of the bonds for authentication
it will furnish to the Trustee in the form prescribed by Section 2.05 of the
Deed of Trust evidence that all of the conditions precedent to the issuance of
"Additional Bonds" authorized under said Section have been met and that under
the Deed of Trust and the act of the Trustee in authenticating said Bonds
shall be conclusive of the authority of the City to issue the Bonds, and that
said requirements and conditions have been met.
ARTICLE III
COVENANTS AS TO CONDITION OF FUNDS
Section 3.01. The City covenants that it is not delinquent
but that it is current in the performance of all of its obligations assumed
under Article V of the Deed of Trust as to the establishment of the several
funds therein provided and as to the payments required to be made by the City
into said several funds.
ARTICLE IV
APPLICATION OF REVENUES
REMITTANCE OF FUNDS TO BANKS OF PAYMENT
Section 4.01. All of the provisions of Article V of the
Deed of Trust are hereby confirmed as being applicable to the Bonds.
- 11 -
Section 4.02. In the event that the Bonds and coupons are
made payable at any bank other than or in addition to the Trustee, it shall
be the duty of the Trustee at least 10 days prior to any interest paymant date,
to make remittance to such bank or banks out of moneys in its possession avail-
able for the purpose an amount sufficient to pay such installment of interest
or such installment of interest and principal as the case may be.
AR"_'ICLF V.
POSSEGSION OF YCRTGAGFD PROPERTY
Section 5.01. The rights reserved to the City and the
duties assumed by the City under Article VII of the Deed of Trust, so long as
any of the Series 1953 Bonds are outstanding,shall remain effective likewise
so long as any of the Series 1954 Bonds are outstanding.
ARTICI2 VI
DEFAULTS AND REMFDIE'S
Section 6.01. All of the provisions contained in Article
VIII of the Deed of Trust (which is captioned "Defaults and Remedies ") shall
be interpreted as applicable not only to the Series 1953 Bonds, but with like
effect as applicable to the Series 1954 Bonds. In determining whether the
holders of minimum percentage of Bonds shall have consented to or requested
any action under said Article the Bonds of both Series shall be considered.
ARTICLE VII
GEIMAL PPOVISIONS
Section 7.01. All of the provisions of Article XII of the
Deed of Trust (captioned "General Provisions ") shall be interpreted as appli-
cable not only to the Series 1953 Bonds, but with like effect as applicable to
the Series 1954 Bonds.
ARTICLE V_ill
RENDERT_NG ALL PROVISIOPIS OF D =D OF TRUST
APPI,IC?T3 =•E m0 Sy�'R 'S 1954 BONDS UNI.FSS
CL�ARLS'
Section 8.01, Unless the context of a given section of
the Deed of Trust shows cigar =y that it must be inapplicable to the Series
1954 Bonds, or unless the inclusion of such section as so applicable would
- 1p -
nullify or render unworkable one or more sections contained in the Supplement,
each section of the Deed of Trust is hereby declared to be applicable to the
Series 1954 Bonds.
ARTICLE IX
DEFEASANCE
Section 9.01. The provisions of Article XIII of the Deed
of Trust prescribing the terms and conditions under which title to the pledged
properties and rights shall revert to the City shall be interpreted to mean
all of the Series 1953 Bonds and all of the Series 1954 Bonds.
IN WITNESS WHEREOF, the City of Corpus Christi, Texas,
acting through and being duly authorized thereunto by its governing body, the
City Council, has caused this Supplement to the Deed of Trust in duplicate
originals to be signed in its name by its Mayor, and its corporate seal to
be hereunto affixed, and to be attested by its City Secretary and said
Mercantile National Bank of Dallas, to evidence its acceptance of the trusts
hereby created, has caused its corporate name and seal to be hereunto affixed,
and this Supplement to the Deed of Trust to be signed by Clarence E. Sample,
its Trust Officer, and to be countersigned and said seal to be attested by its
Cashier or Assistant Cashier, all as of the day and year first above written.
CITY OF CORPUS CHRISTI, TEXAS
BY
Mayor.
ATTEST:
City Secretary.
(CITY SEAL)
ATTEST:
Its Assistant Cashier.
(BANIC SEAL)
MERCANTILE NATIONAL BANK AT DALLAS
DALLAS, TEXAS, TRUSTEF
BY
Its Trust Of£ic:r.
- 13 -
TAE STATE OF TEXAS
COUNTY OF NUECES
BZFORE ME, THE UNDY—RSIGNED AUTHORITY, in and for Nueces
County, Texas, on this day personally appeared A. A. Lichtenstein, Mayor, and
T. Ray Kring, City Secretary, of the City of Corpus Christi,
Texas, known to me to be the persons whose nsmas are subscribed to the fore-
going inst•.•umert and known to me to be, respectively, the Mayor and City
Secretary of the City of Corpus Christi, a municipal corporation, and each
acknowledged to me that he executed the same for the purposes and considera-
tion therein expressed and in the capacity therein stated, as the act and
deed of said City of Corpus Christi, Texas.
GIVEN UNDZR PTY HAND AND SEAT, OF OFFICE, this the
day of March, 1954,
(SEAL)
Notary Pub'_ic in info for Nueces County,
Texaa.
-1h-
- 14 -
THE STATE OF TEXAS
COUNTY OF DALLAS
BEFORE ME, THE UNDERSIGNED AUTHORITY, in and for Dallas
County, Texas, on this day personally appeared CLARENCE E. SAMPLE, Trust
Officer, and , Assistant Cashier, respectively of MERCANTILE
NATIONAL BANK AT DALLAS, known to me to be the persons whose names are sub -
scribsd to the foregoing instrument and known to me to be, respectively, the
Trust Officer and Assistant Cashier of MERCANTILE NATIONAL BANK AT DALLAS, a
corporation, and each acknowledged to me that he executed the same for the
purposes and consideration therein expressed and in the capacity therein
stated as the act and deed of said MERCANTILE NATIONAL BANK AT DALLAS.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the
day of March, 1954.
(SEAL)
Notary Public in and for Dallas County,
Texas,
- 15 -
THE STATE OF TEXAS
COUNTY OF SAN PATRICIO
I, , County Clerk of San Patricio
County, Texas, do hereby certify that the foregoing instrument of writing dated
on the First.day of Febri]ary, 1954, with its certificates of authentication,
was filed for record in my office on the day of , A. D.,
1954; at o'clock, . M., and duly recorded this day of
1954, at o'clock, . M., in the Deed of Trust
Records of said County, in Volume , on pages
I do further certify that an executed and acknowledged
copy of said instrument was filed in my office on the day of ,
1954, at o'clock, . M., as a chattel mortgage.
WITNESS MY OFFICIAL HAND and seal of office this the
day of , 1954.
(SEAL)
County Clerk, San Patricio County, Texas.
- 16 -
THE STATE OF TEXAS
COUNTY OF JIM WELLS
I, , County Clerk of Jim Wells
County, Texas, do hereby certify that theforegoing instrument of writing dated
on the First day, of ,February, 1954, with its certificates of authentication,
was filed for record in my office on the day of , A. D.,
1954, at o'clock, M., and duly recorded this day of
, 1954, at _ o'clock, . M., in the Deed of Trust
Records of said County in Volume , on pages
I do further certify that an executed and acknowledged
copy of said instrument was filed in my office on the day of ,
1954, at o'clock, . M., as a chattel mortgage.
WITNESS MY OFFICIAL HAND AND SEAL OF OFFICE this the
day of , 1954.
(SEAL)
County Clerk, Jim Wells County, Texas.
_lq_
THE STATE OF TEXAS
COUNTY OF LIVE OAR
I, , County Clerk of Live Oak County,
Texas, do hereby certify that the foregoing instrument of writing dated on the
1st day of Fabru ®y;. 1954, with its certificates of authentication, was filed
for record in my office on the day of , A. D., 1954, at
o'clock, , M., and duly recorded this _ day of ,
1954, at o'clock, M., in the Deed of Trust Records of said County,
in Volume , on pages
I do further certify that an executed and acknowledged
copy of said instrument was filed in my office on the day of
,
1954, at o'clock, . M., as a chattel mortgage.
WITNESS MY OFFICIAL HAND and seal of office this the
day of , 1954,
(SEAL)
County Clerk, Live Oak County, Texas.
-lg -
THE STATE OF TEXAS
COUNTY OF NUECES
I, , County Clerk of Nueces County,
Texas, do hereby certify that the foregoing instrument of writing dated on the
let day of February, 1954, with its certificates of authentication was filed
for record in my office on the day of , A. D., 1954,
at o'clock, M.,and duly recorded this ;day of'' ,
1954, at o'clock. -. in the Deed of Trust Records of said County
in Volume , on pages
I do further certify that an executed and acknowledged
copy of said instrument was filed in my office on the day of ,
1954, at o'clock, . M., as a chattel mortgage.
WITNESS MY OFFICIAL NAND and seal of office this the
day of , 1954.
(SEAL)
County Clerk, Nueces County, Texas.
-1 -9-
12. The Supplement and all of the provisions thereof
ere hereby made a part of this ordinance.
13. The Series 1953 Bond Ordinance granted to the pur-
chaser or purchasers of the City's Waterworks properties at a sale to be made
inthe event of the default of the City's obligation to pay principal of and
interest on the Series 1953 Bonds, a franchise to operate said waterworks
properties for a period of twenty (20) years. As is provided in the Dead of
Trust such franchise protects also by a parity of lien and rights the Bonds
authorized by this ordinance.
14. (a) After said Bonds shall have been executed they
shall be submitted to the Attorney General for his approval, and after such
approval they shall be registered by the Comptroller of Public Accounts;
(b) Upon the request of the City the Trustee shall
authenticate all or any of the Bonds and shall deliver the authenticated Bonds
to the City upon proper receipt.
15. Additional 14aterworks System Revenue Bonds may be
issued to be secured by a pledge of the revenues and a lien upon the properties
of the Waterworks System and upon the franchise of the System �as authorized
in the Series 1953 Bond Ordinance) of equal dignity with the pledge and liens
securing the First Mortgage Waterworks Revenue Refunding Bonds, Series 1953,
provided that such additional Waterworks Revenue Bends shall be issued for
improvements or extensions or repairs or replacements of and to the Waterworks
System or for any one or more or all of such purposes, subject to the limi-
tations contained in Article II of such Deed of Trust, and by Article II of
the Supplement, which Deed of Trust and Supplement are respectively made parts
of the Series 1953 and Series 195E Bond Ordinances.
18. All ordinances, resolutions and orders or parts
thereof in conflict herewith are, to the extent of such conflict, hereby
repealed.
19. The fact that the contemplated use of the proceeds of
the waterworks revenue bonds are necessary for the orderly development and
growth of the City of Corpus Christi, Texas, creates a public emergency and an
imperative public necessity requiring the suspension of the Charter Rule
providing that no ordinance or resolution shall be passed finally on the date
it is introduced, and that such ordinance or resolution shall be read at three
several meetings of the City Council and the Mayor having declared that such
public emergency and imperative necessity exist, and having requested that
said Charter Rule be suspended and that this ordinance take effect and be in
full force and effect from and after its passage, it is accordingly so ordain-
ed.
i
PASSED AND APPROVED Me 1 %a:C 1 54.
e Mayor.
ATTEST:
City S cretarry
(CITY SEAL)
The foregoing Ordinance, Supplement to the Deed of Trust,
and form of bond and coupon therein contained have been approved as to form
and correctness this 1 day of March, 1954.
City Attorney.
- 10 -
/CORPUS CHRISTI, TEXAS
95
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS
GENTLEMEN:
FOR THE REA -SONS SET FORTH IN THE EMERGENCY CLAUSE OF
THE FOREGOING -O-RDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY
EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO
ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS
INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT
THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE, HEREBY REQUEST
THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS
ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT
MEETING OF THE CITY COUNCIL.
RESPECTFULLV�f. -s A�
MAYOR
CITY OF,,kRPUS CHRISTI, TEXAS
l
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
A. A. LICHTENSTEIN t d1
ELLROY KING c`ACr
P. C. CALLAWAY
.JAMES S. NAISMITH
W. JAMES BRACE
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
A. A. LICHTENSTEIN
ELLROY KING
P. C. CALLAWAY
.LAMES S. NAISMITH t
W. JAMES BRACE ('