The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1875-04-01
lie BoND oUTRAGE.
some ErrOrs Correeted.

THE BOND OUTRAGE.
some Errors Corrected.
The bankers RBe 20 Expisin..
A Terrible Financial Future for Austin
Inevitable.
Let the People Look 90 Their Interests
while the. Power ~ Len Them.
It will be recollected that in Sundays
issue we gave publication to facts concern
ing the late sale Of city bonds. In the
articles bearing upon this subject it was
stated that $4,000 in bonds had been sold
to Forster, Ludlow & Co. at seventy three
and one-half cents, and $1,000 to Mr.. Chad
wick at seventy-seyen cents. The state
ments were incorrect this far. Twenty thou
sand dollars were offered for sale, and Mr..
Chadwick bought two $500. bonds at seven
ty-seven cents. Forster, Ludlow & Co. were
sold SO, 900 for seventy-twO and half cents
instead Of seventy-three ard half cents,
as stated. Mr.. Chadwick paid for his bonds
in city warrants. The $40, 900 bought by
Forster Ludlow & Co. brought the city, at
seventy-two and half cents, $13, 775, or
S5225 less than the debt the city assumes in
consequence of the sale.
We declared, in our Sundays article,
that Forster, Ludlow & Co. were the inan-
cial agents for the city Of Austin, and
stated that they had been suspended tenn
porarily that they might have showing
with others in bidding for the bonds.
Mr.. Forster, of the above firm, called
upon us on Monday, and asked the publ
cation Of a statement from his house, which
is given below;
AUSTIN, March 90, 1875.
Editors Democratic StatesmGn-Allow us
to say few words in reply to your remarks
In your paper Of Sunday, regarding the sale
Of $50, 900 city bonds.
As soon as the advertisement of the Mayor
appeared in your and other papers, inviting
bids for said bonds, we ceased to be the
financial agents for the city for this partic-
ulRr transaction, but we retained our right
as bankers to make bid for the bonds
this right We used as we'll as Mr.. Chadwick.
Our bid was based upon our appreciation
Of the value of the bonds, which bid the
city authorities had right to reject, but
which Messrs. Bremond, BFueggeFhof,
Beardman and the other honorable alder
men saw fit TO accept. The money for the
bonds is ready to be paid over at once, but
the bonds are not ready for delivery. We
have, however, authorized the Mayor to
draw for $4,000, should he need it. That
we sold the bonds, is true-but whether we
sold them at sixty-five, seyenty-fve,
eighty-fve or ninety-fve is entirely our
business, although they were bought at
seventy-two and half cents. Your allu-
sions TO the county bonds are very proper,
and We are ready and prepared 20 make a
bid for part or the whole, $3.50, 900 Of
bonds. FoRsTER, LUDLOW s Co.
In the above communication 1t is asserted
that the banking house OF Forster, Ludlow
s Co. licensed to be the financial agents for
this particular transaction" This is just
what we stated in substance, and with due
Difference to members Of the firm, we
would have gone on believing, as we stated,
and as they state, had we not again care
fully read over the weekly financial re-
port, . published in the city organ, which
report is written up by Forster, Ludlow &
Co, as appears in the publication.
From this report, dated q German-Ameri-
can bank of Forster, Ludlow s Co., Austin,
Friday, March 90, 1876, . we clip the fol-
lowing:
On the twenty-liitho of this month the city
Of Austin, by her Mayor and finance COM
mittee, opened the bios for $50, 900 twenty
year city Of Austin bonds.
~ =. 50.
ton 10 save the city commissions, had the
bonds begn sold by the financial agents Of the
city, and also with the view Of giving ourown
citizens a chance to invest in this desirable
security, advertised for bids for the $50, 900
honda. But two bids were received; one
was from Mr.. Chadwick for $1,000 at seven
ty-seven cents, payable in city warrants,
and the other was from Forster, Ludlow s
Co, for the whole $50, 900 &c seventy-lve
cents, less two and one-half per cent. COM
mission. The mayor closed with the latter
parties for SIC, 600 CITY bonds at their offer,
and the money will go into the city treas
NY on delivery Of the bonds.
This statement IS from Mr.. Forster's own
pen, in which he says: "And the other was
from Forster. Ludlow s Co, for the whole
eco, 900 for seventy-6ve cents, less two and
one-half per cent. commission" As Mr..
Chadwick had offered scventy-seven cents
for $1,000, SO much was sold him, and Fors-
Ter, Ludlow & Co. became the purchasers
eat seventy-iive eeats, less two and one
half per cent. commission. Now, in the
name Of al reason, what was this dedne-
ton Of 1.-TWO and one-half per cent. CON-