The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-05-16

Unless the delay OF the mayor ana
the finance committee in deciding up
on the acceptance of the bid of the
New York Life Insurance company. of
New York, has caused the officials of
that great corporation to change their
minds regarding the purchase of more
Utah securities, the 100000 municipal,
general improvement bond issue will
this morning be sold, the paper going TO
the New York Life, upon its bid of
par and interest.
The same secresy which has been
maintained by the mayor and members
of the finance committee toward the
representatives of the press for the
past week was in force again yesterday
and the reporters placed their depend
ence in the bond buyers, who have
decided knack in discovering the work
ings of the committee. 1t is hardly TO
he supposed that the members of the
committee give the news away but IN
some manner those willy men OF bonds
do get onto the facts in the matter ana
within an hour after the adjournment
of the committee can make pretty Sood
guesses as to the business transacted
during the session. 1t was learned tnat
on account of the decision of the COM
day night without action the ofnclaIs
of the New York Life came to the con-
clusion that their bid was being used
as a club in the hands of the committee
for the chastisement of the other BOND
people, and wired to the effect that I'M
less some decided action was taken dur
ing the early part of the day the bid
would be withdrawn. The mayor ana
the finance committee held rather
impromptu meeting during the after
noon and for the third time considered
the bid of the New York Life.
The statement is made that there was
some question as to the interest clause
in the bid, and again nothing was ac-
complished by the committee, another
adjournment being taken to Z o'clock
last evening. At this hour, the mem
bers of the committee and the mayor
were on hand and went into execu-
tive session. Just what was the decls-
ion arrived at, the mayor and mem
bers of the committee refused to oil
vulge to the newspaper men, and,
when approached upon the subject, Ii.
G. Whitney, manager of Heber j.
Grant & company, the local representa-
tives of the New York Life, stated that
he had nothing to say except that the
| indications were that the negotiatizZs
would reach a successful issue this
morning, unless the delay had occa-
stoned a change of mind with the Off
Gals of the company. More than this
the gentleman declined to state. By
grapevine, however, came the intelli-
gence that the committee had accepted
the bid of Mr.. Whitney's house, pro-
vided there be no unnecessary delay
| in the examination Of the papers by the
attorneys of the company. Some Of the
bondmen say the time is limited to
| five days from the receipt of the pa
pers, 100000 of the money to be paid
at once and the remaining 100000 be-
| fore July 1st. No certified check was
required, the mayor and the members
| of the committee being satisfied with
the standing Of the bidder. An answer
of acceptance of the provisions of the
contract, or its rejection, is expected
| this morning. Should the answer be in
the negative, the city will have lost
an opportunity which may not be again
! presented for some time to come. The
deal could have been closed on Monday
night
The manner in which the New York
Life Insurance company became inter.
ested in this issue of bonds is full of
! interest. AS soon as the president had
attached his signature to the act allow
ing this city to increase its bonded in
debtedness, Messrs. Grant & Company
placed themselves in communicat ton
with the New York Life and asked
whether or not that company desired
to enter the competition for the issue.
The answer came back that the COM
pany was already the holder of several
blocks of Utah securities and did not
at that time desire to load up with ad-
ditional paper of this territory. Sew
eral days ago, however, when the press
! dispatches announced that the negotia-
tons looking to the sale of the bonds
had been declared off, on account of
the bearish spirits possessed by the
bond buyers, Grant & Company re-
ceived a second dispatch on the sub
ject from the company asking whether
a bid of par would be considered by
the committee. After consulting with
the mayor Mr.. Grant wired back that
such a bid would more than likely
take the bonds and as a result the
company telegraphed a bid Of par and
interest. This offer the mayor and
committee have been considering since
Monday morning On account of the
splendid record of the company a GER
/ titled check was not demanded. This
! is the company which led off with a
subscription of S3,OOO,OOO towards the
recent $50 100000 government bond is
sue Of per cent, colds.