The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-04-07
BOARD OF ALDERMEN.
The Bid OF Blair for tho Bonds Unani-
mously Accepted.

mously Accepted.
The board of aldermen last night passed
an ordinance approving the bid and con-
frming the sale of 81, 2S5, 900 municipal
bonds to Blair d Co., passed the salary Or
dinance appropriating $50, 297.s3 to pay
city salaries for the month of March, and
< in addition put through vast amount of
roatine work.
The following communication from
Comptroller Ferris was read:
There seems to DO some opposition to the
adoption of the recommendations made by the
auditing committee that the bid of Blair & Co.
for the purchase of the bonds authorized March
be accepted. That your honorable body may
be fully informed wish to briefly state some OF
the reasons which induced the committee to
make such recommendation. To more clearly
place the matter before you, wish to make
statement regarding the arrangements made
prior to the opening of the bids. In March
the mayor approved joint resolution authoriz-
ing the mayor, comptroller and joint finance
I committees to take the necessary steps for re-
n coiving proposals TOR the purchase OF
the various issues OF bonds. After sew
erd conferences with the mayor and
committees and some OF the leading
bankers issued Q circular calling for bids for
April 4. each bid to be accompanied by q certi-
fed check OF 5000, that amount being deemed
sufficient guarantee OF good faith, and not so
excessive az TO prohibit bona fde bidders from
par ticipating. After sending these circulars to
the local bankers and leading bond brokers Of
the East, another resolution, changing the date
Of sale and amount OF check, seems to have been
unlimited to the council and passed, but in
such mutilated condition as to utterly prevent
the arrival at any satisfactory conclusion a. to
what was intended
This last resolution I knew nothing about
until very few days before the 4th. the original
date for receiving bids. After conference with
the auditing committee and corporation coun-
eel II was decided that inasnuch as II was not
q legal necessity to advertise at all, and as it
was thoroughly understood that bids should be
orened on the 4th, we should proceed and con-
rider bids on that day. Ample notice had been
given, as was evidenced by the presence OF rep
resentativcs Of all the leading bond houses in
the country. Bids were opened, and have no
hesitaucy in saying that better bids were re-
y ceived than we had reason to expect The high
est ana best bid, that OF Blair 4 Co. and Brews-
/ ter, Cobb q Esterbrook, was. In the opinion OF
2 the auditing committee, bid fair and business
like and they recommended that 1t be accepted.
Mr.. Barroll, representing those houses. i'm
pressed us with the fact that they were anxious
TO obtain these bonds with as little delay pos
sble; that inside OF twenty days from the sign
ing of the contract the proceeds would be avail
able for the city. Certainly an inducement for
the delaying of the delivery of the bonds means
4 loss 10 the city OF 4 COnbluefdOle sum tnOutu-
ly, besides leaving the finances OF the city in
an unsettled condition. Your honorable body
should certainly not take hasty action on mat
tiers of such magnitude, but where delays arc
dangerous and extensive, such speedy action as
ts consistent with good business legislation
should be taken. The city. in accepting the bid
Of Blair & Co. and Brewster, Cobb & Esterbrook,
can be congratulated upon having as their
creditors firms representing combined
capital of at least s60,0ooo 900, and firms
\ that are sufficiently strong to hold
the securities of the city up TO the highest pos
sible notch and establish credit for the city
that can certainly only rebound to its advant-
age. The placing of our securities in the hands
Of those who eau protect them, who are not
compelled, on sccount OF a sudden stringency
in the money market, to throw them on q de-
chning market, maybe at loss, is an advantage
apparen, to all. I have reason to believe that
the presence here of representative OF those
houses was very material factor in the city s
receiving as high bids from other houses as they
did; that had they not have been in the market
for those bonds the price received would have
been less by some thousands OF dollars. The
fair and busneSs-lise bid, the financial
strength of the bidders, their desire to take the
entire issue and paw cash a. soon
as bonds can DO delivered. were the
reasons leading us to the recommendations.
The fact that there has been presented to your
honorable body proposition TO take the bonds
ct slight advance of the bid of Blair
Go, 10 not a sufficient reason for Its ac-
Acceptance. The lack of good faith OF these last
hdders is evident, as there was no obstacle to
y 'helr bidding high before the bids were
opened as they did since finding out how their
Competitors had bid, and the CITY had no moral
right TO reject a satisfactory bid received In
compliance with its advertised call for the pur-
poseo considering an offer subsequently made.
The reputation of the city for conducting its
business GU business principles is OF more I'M
portance than the saving OF a few thousand dol
lars At the loss of H.
The ordinance was then read. 1t proved
to be u lengthy but carefully guarded
document, authorizing the acceptance OF
Blair & Co.'S hid and confirming the sale
10 them of slS50o0 funding, S215,Oo
\ Judgment. $4,000 condemnation OF
award, $4,000 general, s205,ooo water,
and $3.50 90 sewer making total oil
N,265,000 bonds. Not word was
spoken, and although there were several
OF the Directing bidders in the lobby, and
though invited to speak. not word oil
objection was offered, and on third read
Ing the bill was passed by unanimous
vote
Ordinance No. ., appropriating $50, 81. =
out of the salary fund to pay March
municipal salaries. was passed.
Tine communication from Mayor Kon'
aid, nominating h. Z. Bennett as PARK
commissioner, 10 TIL the place OF Otto
hanke, was read. The board promptly
confirmed the nomination.
After the minutes of the meeting had
eeen read 3 recess vas taken to enable the