, 1891-03-19
THE BIDS REJECTED.
FarsOn, Leach & Co. Withdraw
Their Offer.
A Tight Money Market Causes Low
Offers.
City Bonds May be Sold at Private
Sale.

SNAS
Mayor Brespahen called the adjourned
meeting OF the council to order yesterday
at 3 p. N. All the councilmen were pres
ent except Mr.. Ross, who is still confined
to bis home by sickness. The business Of
the meeting was to take some action in
regard to sale of bonds. The city sttor-
ney rendered an opinion that the bonds
could not be sold for less than their par
value. In his opinion the bonds would be
void If issued and sold for less than par.
The selling of the bonds and deducting
the commission would Re considered sell
ing the bonds for less than par. He
cited an instance in the state of Wash
ington about some Seattle bonds in which
the courts had decided that paying a
commission was selling the bonds for less
than par.
Two kilograms were received from Far
son, Leach Il Co, one telegram from Chi
cago and one from the New York house.
The matter looks rather strange as the
business has heretofore been carried on
with the New York house. Now a tele
gram comes from Chicago, where they
have a branch house. refusing to accept
the bonds and Withdrawing their bids.
City Clerk Dana teleRraphed to Farson,
Leach & Go. Tuesday morning asking
them to have some bank deposit a check
for them to secure their bid and they tele-
graphed back that they withdrew their
bid. The general opinion seemed to be
that their bid was a bluff as they bought
the last issue of county bonds and have
since then Tepudiated the purchase claim
ing that the bonds signed by the deputy
treasurer with authority were not valid.
Some discussion was INDUCED in 10 re-
gard to whether the ordinance under
which the bonds are to be issued would
permit the selling of the bonds at private
sale. The city attorneys opinion was
that the bonds could be sold at private
sale as the ordinance only states that the
bonds shall be sold for cash at the best
possible price. The question was upon
the rejection or acceptance of the bids
sent in Tor the bonds. The none mar
ket is light, the moneyed men of New
York are afraid of the London money
market and for th.t reason it was the
opinion Of the council that the matter hal
better be laid over Until things Looked
brighter.
The city has iron on the way for the
viaduct AID 1t will have 10 be uald for the
first of uext mouth There are also Eve
cars OF pipe On the way Tor the extension
of the water system aud the purchase
price will have to be paid by the teath Of
next month. 1t amount to 81, SEQ.
The council finally decided u let tie
mayor and the ~iuance committee decide
upon some way for paving the prospect
i've Indebtedness of the city for the via
duct ana the extension of the water sys-
sem.
Another objection to the bonds is the
place for paying the interest, which Is
New York.
The council under suspension of the
rules passed amendments to the ordi-
nance for issuing the bonds 50 hat the or
dinance reads that the interest shall be
paid at the city treasurer's Office or where
ever else the council shall decide.
A communication was read from the
Union Pacific in regard to the purchase
Of part of block 400 and all of block 4OS 70
be used by the city for the water system.
! The romnanv have haon 6yipr tba nr;,a