Evening star. [volume] (Washington, D.C.) 1854-1972, 1872-03-12

charges against the Board of Public Works and
the new District government was resumed this
morning before the House Committee on the
District of Columbia.
Mr.. Phillips, counsel for the District govern.
ment, presented copies of a large number of
contracts to the memorialsts asked for by them.
George +. Baker, sworn:-Is Controller Of the
District of Columbia, nc, 900 in currency were
realized from the million and a half Of District
bonds sold; knew some of the Off GERS in the First
National Bank of New York; one OF them is a
son of witness.
BY Mr.. CoOmbs The water bonds were sold
in November last; when the bonds were first
issued they sold low, therefore they were held
back In order that better price might be real
By Mr.. Crane The cost of fitting up the
Morrison building was paid out of the general
fund, under an appropriation made by the legis-
lature; the water bonds bear interest at the rate
of per cent. and were sold in New York: the
amount was deposited i'm the First National
Bank OF New York, and is drawn out as the
realized from the million and half of District
bonds issued was deposited in the First National
Bank here, except that used to pay the loans
pre- yiousiy anticipated.
BY Mr.. Phillps.-The apartments in the old
City Hall were not suitable; there was no room
for many OF the Off GERS the old cor poraton in
debtedness 10 In charge of the missiouers of
the sinking fund; the water bonds were sold at
par, and the bank was allowed no commission for
negotiating them; notes signed by the Governor
we're for temporary loans OF 100000 and
MIR. Baker, in reply to a question of Mr..
Crebs, announced that he would furnish the
committee on Thursday next with the detailed
state ment OF the indebtedness and resources of
TIE District, in accordance with the request
made q few days since.
Judge Poland said the examination of wit
nesses should be conducted by one counsel, and
had been the practice.
George w. Linrilie. sworn:-Is the contractor
for
PAVING THIRD STREET,
from Indiana avenue TO New York avenue: re-
ceived that contract from Mr.. Faehtz; did not
bid on the work before it was awarded; agreed
10 pay Faehtz 80 cents yard, and assume his
nOebtedness; Faehtz was unable to fulfill the
contract on account OF not having means:
Faehtz had been stopped by the board because
ne had not done the work according to contract
and In proper manner, and Mr. Mulle.t the
Chief engineer, had notified HIM that portion
must be taken up and relaid, as the foundation
Was OF mud and sand, which would not do;
Faehtz then assigned the contract to witness,
who was to relay the pavement in accordance
Win instructions from the board, AMI the boar!
transferred the contract to witness; receives S3
per Sa an ior the work; would have bid to do it
the lumber SIX months ago; the street was not
torn up after December list
BY Mr.. Phillips:-Is engaged in the lumber
business, and can I'LL al order OF from 1908 to
$500 eco feet OF lumber; no member of the Dis
Iict government is interested with witness in
the contract; the pavement on Sd street had not
IL. l
prepared wood, however; the work was stopped
at the request of residents on Sd street; witness
would buy all the vacant ground on Capitol
Hill If he had the means; sold 80 900 feet OF
ground four weeks age for 20 cents per foot
paid 10 cents per foot for it eighteen months
ago; il had
INCREASED IN VALUE ON ACCOUNT OF THE
. IMPROVEMENTS;
had purchased other property and sold il at
much larger sum than he paid; the general ef-
feet OF the proposed improvements was good if
fA-6Q ffan ftnv,
houses which Washington needs it would be
impossible to supply the demand; small houses
should be built, instead of large ones at twenty
and twenty-five thousand dollars; mechanics
ana iaborlng men are in want OF and are pur-
chasing small houses, but they are no. being
built last enough for them.
THE IMPROVEMENT LOANS.
Cor Cooke receiled.-The four mil. ion loan
bonds IN the market were issued under the first
act; has no knowledge OF the loan being adyer.
Us used IN Europe as being guaranteed by the L.
>. government; the first four million loan was
not voted on by the people, but the second one
was submitted to the people and sustained nv
them; witness negotiated the loan with parties
In the United States; they disposed Of it in
into operation Washington city bonds were
quoted at 80 or IS, and there was no outside
market Tor them; saw an AssO lated Press tele-
gram in December last that the new District
bonds sold in Europe at 81 gold.
MI Green-exhibitiDg copy Of the Bankers
Magazine, giving the quotations of T. s. bonds
at home and abrOad-asked the question why
they were higher here, and what was the cause
of the difference?
Gov. Cooke answered that in the first place
there was difference in the currency, and the
the rates OF exchange.
Q-what will four shillings sixpence sterling
amount to In currency?
Al will make the calculation and tell YOU.
What will 225 pounds sterling amount to
Al will make the calculation for YOU.
MI. Eidridge.-I suppose, Governor, this is an
ExAMiNATioN UNDER CIVIL SERVICE REFORM,
to hnd out If you are competent to be Governor
Of this District. Laughter
MI; harmer.-Well, what bearing on the case
Governor Twill you please furnish the com
mittee, Governor, with a statement Showing
the value of 81 900 bond sold in Europe at 81
with 10 per cent added for exchange and 10
per cent gold premium added?
Al will, sir.
HOW THE BONDS WERE NEGOTIATED
Witness resumed:-SO faHas the District gov
eminent vas concerned, the loan was neg0tia-
ted with the First National Bank of New York:
sold the bonds to that bank at 9GS les, 2L com
mission paid to the bank, making the net pro-
ceeds realized from the bonds 81 cents: negOtia-
ted the bonds through the First National Bank
OF New York because the District had received
and from that bank when it could not get it
elsewhere; witness was making ARRANGEMENTS in
New York to negotiate the temporary loans at a
very satisfactory figure, when r,lmors came there
tnat there was disaffectiOn here with tue new
~, anu the partleS with whom
ne was negotiating refused to take the loan on
account OF those rumors; the First National
Bank OF New York then came to his assistance
sions.
Mr.. Harmer.-Could those bonds have been
placed upon the market at a better ADVANTAGE
than they were through the First National Bank
of New York?
A.-NO, sir. 1 don't believe a better necotia-
ton in any city bonds has been made within
the past five years.
By Mr.. ROOsevelt:-The First National hank
oil New York is not the agent Of the District
government or the First National Bank in
Washington; saw the European advertisement
after the loan was negotiated; witness negotiated
the bonds with the First National Bank of New
4 ork, and had nothing hatever to do with that
oank selling them abroad; the interest on the
bonds was equated as fast as the bonds we're de-
Ivered and the proceeds reali zed; the bends are
payable In New York, principal and interes.
BY General Chipman:-Witness had q fonver-
sati0n with Mr.. Riggs, and told him he thon oht
ne (witneee) could get IS for the bonds. III
Riggs replied that would be maQnificanf nrjca.
witness had been congratulated 6y banker and
property holders at the price reaii sed: II is th
universal practice to give bankers q commission'
as they take all the risks of the market: had re,'
celved information within the past week stating
that the bonds had
CONE DOWN PER CENT.
on account OF Mr.. Summers bill introduced in
the Senate. -"
Q.-Would not the house of Jay Cooke. Nc
Culioch X Co., in London, have been a better
M mt Hat Al.2I