The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-06-03

In accordance with Mr.. O'Meara's
resolution, adopted by the city council,
Treasurer Duke has drawn on the New
York Life Insurance company for $780,
600. the drafts going through several
local banks for various amounts, but
the total amounting to the ever half
million dollars. Although this act was
in direct contravention to the terms OF
the contract, which was that the money
should be deposited in the New York
Security and Trust company. and
drawn by the city by checks on that in
stituuon, as needed for disbursement,
it is not thought by Grant & Co, the
local agents of the New York Life. that
the negotiation will be in any way i'm
perilled. No man knew better than
Mr.. O'AIeara, the author Of the resolu-
ton, that that resolution might upset
the whole thing, for Mr.. O'Meara was
member of the finance committee which
made the contract, and his course in
the council since the deal was closed
have shown that he would not die of
grief if the New York Life could Be
made to call the deal off MT.
O'Meara therefore as well as the mem
bers of the bond combine who still
finger in the city hoping against hope
that something unforeseen will yet
happen to throw the bonds in their
direction, will not be delighted 10 read
this morning that there is no doubt
that the New York Life will pay the
city's drafts for half a million promptly
? on presentation, and the remaining
three hundred and odd thousand on
July first according to contract, hence
the fine italian hand of the gentleman
from the Fifth precinct, pulled its
latest wire all to no purpose.
Mr.. Heber J. Grant eaid to Herald
representative last ev nilE at his office
that while the act of wing for the
whole amount at once was plain vio-
lation of the contract which had been
made between the mayor, the finance
committee and himself as representative
% the New York Life, still he did not
for a moment think that the company
would decline to pay the drafts or to
accept the bonds although it would
have an undoubted right TO DO SO.
In support of his view Mr.. Grant
showed the following letter Ehich he
had Just received from Treasurer
Gibbs:
New York, May %, 1894.
H J. Grant. Esq, Salt Lake City, Utah.
My Dear Sir-As wired you today, the
opinion of the attorney of this company
is favorable, in respect to the legality
of the issue of bonds recently purchased
from your city, through you and same
will be paid for on delivery, as re-
quested by you, by deposit of the
amount, to the credit of your city, in
New York Security and Trust COM
pany. Kindly ask the authorities to IA
Nor US, for the use of the Trust company,
with the signatures of the officers au-
thorized to sign checks.
l notice some rather uncalied for
suggestions in newspaper you, or
some other friend, was kind enough to
send us, which l regret because they
are entirely unmerited. I presume it is
not necessary to say to you that no one
represented US in this matter except
yourself, any newspaper suggestions to
the contrary Notwithstanding. Our po-
sition must have been clear to you,
from the outset, because, as you know,
we declined to enter into the scramble,
and, as you were advised in advance
of the date of the sale, we did not in
tend to compete for the bonds.
Several days after the sale, you were
authorized to make the purchase for
us, at a price which it seemed here
the bonds We're worth to this company,
ard 1t also seems to have been an eX-
cellent sale for the city. Out of this
simple situation. it seems rather I'M
necessary to impute either motives or
conditions which never existed. If the
money for these bonds, paid at once,
will promote the welfare Of your city,
4 this company will cheerfully waive its
deposit in New York Security and
Trust company. and, on receipt and ex-
animation of the bonds here, will send
the city our check for the entire
amount AS that must be returned to
New York for credit, it is difficult to
understand that the proposed arrange
ment is not quite as good for every
body.
You understand the kindly relations
which have existed between New
York Security and Trust company
and your city. for nearly two years
past, and the confidence this company
has in that institution. l am glad to
note that the city recognized your ser
vices, and assure you same are
thoroughly appreciated at this end
Very truly yours,