The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1884-05-08
of prior to considering the main bust


cuperate his health.
The street committee reported hav-
ing directed certain repairs requested
by Mrs. Smith, at the corner OF Hick-
DRY and Lavaca streets.
The report CT the city marshal was
received, showing, among other data,
1876 arrests made during the month OF
April, and fines assessed during the
month amounting to 81, 122I.55.
a special report was received Ia
Yoring the petition of the Capital
Compress company, asking the prlvl-
lege of erecting bridge over Shoal
creek. An ordinance. accordingly,
was reported and laid over for future
action.
A motion was made to suspend the
rules, so as to allow the finance COM
mittee to make verbal report, as a
written one had not been prepared.
1t was finally concluded, however,
that the committee make such
report as could conveniently
| be made IN writing relative to the
negotiations of city bonds.
Alderman Hancock then offered the
following:
The finonce committee report sub
stantially as follows: They have had
but one offer, that of Mr.. A. L. Wool
bridge, of this city, who proposes to
take % 600 of the city's bonds at SO
cents on the dollar, accrued interest
to go with the bonds. This is in eff
fact on an offer of only 9619 cents.
The committee and the mayor after
seriously considering the offer agreed
to report it to the council for their
consideration.
The report is signed by Aldermen
Hancock and Mas, of the committee.
Alderman Hancock explained that
Mr.. Woodbridge subsequently to his
offer, which was made under the i'm
preston, that the bonds were perft city
regular, had examined the bonds
and discovered two grave
defects in the issue of
the Latch of $1,000 bonds
and withdrew his offer till the bonds
were corrected There was also de-
feet in the $25, 900 issue, which, how
ever, was only apparent, and could be
easily remedied.
IThe defects in the bonds are under
stood to be that one set does not spe-
officially state in accordance with the
requirements of the ordinance author
izing their issue, the object for which
they were issued; and in the other
set that the bonds are not properly
designated. The defect in the former
instance, it was explained, had really
been remidied, by having the objects
for which they were issued added to
and engraved on the plate. Repor-
ter
Mr.. Hancock said the committee
had not assumed to act in the matter
further than to state the facts as
to the negotiations made in
in New York when some $4,000 of
the city bonds were hypothecated for
the loan to the city, and the offer
which had been made by Mr.. Wool
bridge as the only offer presented.
The committee were disposed to &C
cept the offer, but had preferred to
leave it to the wisdom of the council
without direct report to that effect.
Alderman Hill moved to receive
the report of the committee.
Mr.. Woodbridge spoke by permits
sion of the council, explaining his
position in the premise. He said he
was not over anxious to take the
bonds if other parties wanted them.
He had made the offer as matter of
pride which he felt in the reputation
of the city which was being besmirched
with discredit in. the market. He did
not desire the $4,000 bonds at all in
their present shape, as under the ordi-
nance they can't be sold under par.
He wished it further understood that
he had all confidence in the credit OF
the city and the bonds as an invest
ment were the bonds perfectly regu-
lar. He wanted further to be distinct
" understood that if the same offer he
had made or better one was made by
other parties his offer was to be con-
sidered withdrawn. So far as the
welfare of the city was concerned his
offer had been made in good faith,
but looking at the matter as an in
vestment the rate of interest was too
low to make it desirable. He would
even aid the committee, If desired, in
finding a bidder at his own or better
figures.
The facts are that the ordinance as
commended by Alderman Platt does
prescribe that the bonds were not to
be sold at less than par, and that the
ordinance passed with that express
understanding. Subsequently, how
ever, the council, as stated by Alder
man Mas, remedied this by resolu-
ton which was adopted some time
ago, authorizing the mayor and
could with them.
Alderman Hill wanted the action of
the council specifically on record
to show that it was TAX
en- in consequence of the bonds
having been predicated upon.
He thought the mayor had made a
mistake, perhaps, but as he had acted
in good faith as the representative in
the matter, he was in favor OF sustain
ing his action.
Alderman Brush argued that it was
not q question as to the credit of the
city which was involved, but merely
as to the character of the ordinances
Alderman Hancock said the trou BILE
was that the bonds had been pledged,
and the money had to be raised. He
/ did not think we were likely to
have a better offer, and Mr.. Wool
bridge would hold his offer open a
while.
MAYOR SAYLOR,
in explanation of his action in the
premises, said the city treasury was
empty, with an interest account due
in New York of over 5000, besides
the bonds due in st. Louis, which had
not been returned and which it was
impossible to sell at par. So he asked
Maj. Breckenridge to advance the
money for them, and the major tele-
graphed and had the debts in New
York and st. Louis paid, amounting
to about $4,000, and the bonds
were sent back cancelled.
He and Mr.. Newning had
tried to sell them at par in New York.
Major Breckenridge wanted his money
back, and though he (the mayor may
have stretched his authority some
what, it was becruse he did not be-
| lieve the city wanted to keep him
waiting for the money which had
been advanced under the circum-
stances of the city's necessities. He
thought it as well to owe Swenson in
| New York as the National bank, in
Austin, especially as he could get the
money north at six per cent. Lie had
been censured, but he did not see
how he could have done otner-
wise in justice to the parties.
Alderman Hill and others thought
better offer might be had.
The matter was further discussed
for a considerable time by Messrs
Hill, Hancock, Plat, Mas, Robert.
son, Robinson and Bremen, after
which the following, offered by Al
derman Hancock, was adopted:
Resolved, That the city council &C
cept the offer of A. p. Woodbridge of
SO cents on the dollar on $25, 600 bonds