The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-05-17
BOND SALE E. RATIFIED.
The Issue Goes to the New
York Life.
A SHATTERED COMBINE.
UNFAIR TACTICS OF THE MEMBERS
LAST NIGHT.
After Bearing the Securities For a
Week, They Suddenly Become
Bulls and Demand an Auction
SaIe-The Gravity Sewer Matter
Up For Consideration.

Up For Consideration.
At special meeting of the city coun-
Gil last night, the 800 bonds of the de-
nomination of $1,000 each, were sold
at par and accrued interest to the l4th
inst, to the New York Life Insurance
company, after which the session was
devoted to an exhaustive discussion OF
the question of resuming work upon
and completing the gravity sewer.
President Mccormick occupied the
chair, with all members present except
Councilman Hardy.
The reading the the minutes OF the
last meeting waived, the president an
nounced the reading of the call for the
special meeting and the following was
read from the mayor:
FROM THE MAYOR.
Salt Lake City, May 16.
To the President and City Council:
Gentlemen herewith send the dis
patches and letters on the matter of
the sale of the city bonds, and ask
you to take such action in the premises
as you may deem proper. If you are
satisfied with the offer through me ac-
cepted by direction of the finance COM
mittee, then 1 suggest that you pass
resolution ratifying this action and
confirming the sale-Respect sub
mitted, R. n. BASKIN,
Mayor.
The mayor having arrived by invita-
ton of the council, asked for the read
ing of the following correspondence
leading up to the contamination of the
deal so far as the Communications of
the committee and mayor could con-
summate it.
New York, May IA, 1894.
Heber j. Grant:
Will take issue at par and accrued
interest up to today, subject to legality,
delivered here; money to be deposited
with the New York Security and Trust
company, to the credit of your city,
and drawn as required for disburse-
ment,-Respectfully
EDWARD N. GIBBS,
Treasurer.
New York, May 10, 1894
Heber j. Grant:
Dissatisfied with committees delay.
Unless you secure conclusion at noon
today, withdraw from negotiations.
EDWARD N. GIBBS.
Treasurer.
New York, May 16, 1894.
Heber J. Grant
Understand our proposition 14th &C
cepted by city. Same hereby con-
firmed. Have papers forwarded i'm
mediately. Examinati ton will be
prompt.
EDWARD N. GIBBS,
Treasurer.
Salt Lake, May IS.
Edward N. Gibbs. Treasurer New York
Life Insurance Co., New York.
Your dispatch not delivered till after
noon. The city&lhas now accepted
proposition contained in your dispatch
of 14th. validity of bonds to be passed
upon by you within five days after re-
ceipt of papers. Answer.
HEBER j. GRANT.
Salt Lake, May Is.
Messrs. Heber J. Grant & Co., city
The city will accept the proposition
contained in Mr.. Gibbs dispatch of
the 18th inst, the validity of the bonds
/ to be passed upon within five days
after receipt of papers.
r. n. BASKIN, Mayor.
Salt Lake City, May Is
Hon. R. n. Baskin, City.
Herewith find telegram received at
noon today from Mr.. Gibbs, treasurer
of the New York Life Insurance COM
pany. The intervening time since re-
ceiving same has been spent in fruit
less attempt to find you.
HEBER ]. GRANT.
May 16, 1894.
Hon. R. N. Baskin.
Dear Mr. Baskin-In response to
your request, I will state that I tele-
graphed Mr.. Gibbs on the 18th that
was confident I could secure $500, 00C
city bonds at "par and accrued inter
est, 100000 to be delivered now, re-
mainder July 1. Wire definite author
itiy to make bid subject to legality"
Mr.. Gibbs reply to this was the tel
egram of the 14th, now in your posses
sion, and reading as follows: 'Will
take issue at par and accrued interest
up to today subject to legality, deliv-
cred here, money to be deposited with
the New York Security and Trust com
pany to the credit of your city and
drawn as required for disbursement"
HEBER J. GRANT.
Mr.. Clawson offered a motion thai
the action of the mayor be ratified.
Mr.. Remington asked if another bic
had not reached the table.
Mr.. Cohn supplied the affirmative
and stated that the recorder was in
possession of one.
Mr.. Young stated that the matter
had been delayed for days; that al
ready two sales had miscarried, and &
Irresponsible bid having been received
urged that the action of the mayor be-
ratified.
Nj. Remington moved to lay the re
port on the table.
The motion to lay on the table wa:
lost on the following roll call:
Ayes-Bache, Cheesman, Corum
tDaly, Mccormick, O'Meara and Rem
Iington-7.
Noes-Clawson, Cohn, Lynn. Morris
Newell, Watson and Young-7.
Mr.. O'Meara did not believe the cit,
was in a position to exclude any biz
and if the council by resorting to tn
tactics introduced by the combin
could save to the city $4,000, it wa
Its duty to do SO.
A LITTLE LATE.
Francis Mckay, representing tn
German American Investment compan.
of New York, was allowed the foo
and stated that while he had refrainet
from bidding in the first place he hat
now put in one in good faith an,
asked that it be taken into considera
ton.
Mr.. Grant, representing the Ney
York Life. stated that while they ha
not yet put up a check of $4,000, t
which Mr. O'Meara had referred, n
lone questioned the solvency, the goo
faith or the responsibility of the com
pany. the cash assets of which con
sisted of $100,000,000. nor had they bee,
LIZ to nIn IL,