Los Angeles herald., 1891-01-14
The Courthouse Bonds Not
Yet Sold.
An Attempt Being Made to Rec
tify Expensive Mistakes.
How Will the Cost of the New Court
house Be Met?
Muddle Which the Lawyers Are Try
ing to Clear Up-The Facts in the
Matter-What Will Be Done?

Now that the new courthouse is about
finished. the matter of paying for it will
have to be considered. The public at
large will remember that some time last
spring the county of Los Angeles voted
to issue $500, 600 worth Of bonds for the
purpose of meeting the cost of the erec-
tion of the courthouse, but the fact is
not generally known that these bonds
have not been disposed Of, and it is ex-
tremely unlikely that they will be dis
posed of as the case now stands, owing
to certain errors, to put the case very
mildly. on the part Of the supervisors
in conducting the proceedings prelimin-
ary to their sale.
When the time arrived for opening
the bids for the securities and accepting
an offer for them, it was stated that the
German-American Savings society of
San Francisco had made the most ad-
vantageous offer, and that that institu-
ton would take the bonds. Since then
the supervisors have been remarkably
quiet about the matter, and have had to
exercise most wonderful versatility in
the art OF financiering to keep up their
payments, by swapping amounts from
one fund to another, until the money
needed was in an accessible account.
The German-American Savings and
Loan society was willing to take its pur-
chase, and pay for it, provided the su-
pervisors would give them clear title !;
but there is where the rub comes.
Through the laches OF those county Off
GERS, the bonds were found to be in a
muddle; a number of mistakes had been
made in the business preliminary to
their issuance, and the matter was put
into lawyers hands, to see if there was
any legal way OF correcting the blunders.
A HERALD reporter was detailed yes
terday to investigate the situation, al
though everybody connected with IT,
case refused to give any information, the
main facts were found to be that two
important and plain requirements OF the
law had been overlooked by the super
visors in conducting the business.
The first of these was the manner of
advertising for bids. The law specifies
the way in which this should be done,
the number OF times the advertise
ment should be inserted, and the
length = of the pesiod during
which the advertisement should run.
This procedure was violated in a most
important detail, the number of times
the advertisement appeared being less
than those required.
The law requires full month, or five
insertions, and they were only adver-
tised four weeks. sa.
again, LIlc law requires DilaC y Di0 rOr
such bonds, to be legal, should be made
for sum specified, besides the interest
which may have accrued at the time
the bid should be accepted.
The supervisors have employed Hon.
Stephen M. White to look after their
side of the business, and the German
American Savings society are repre-
sented by the firm of Chapman & Hen
bricks. The latter gentlemen refused
absolutely to give the reporter any in
formation about the case whatever,
stating that they had been requested to
keep the matter private. Mr.. White
was out Of the city, but his representa-
tivein his Office claimed to know nothing
of the matter. The supervisors who
were seen were also, very naturally, per-
haps, anxious that nothing should be
said about the matter.