The San Francisco call., 1897-12-12
MUST PUT
Up A GILT
EDGE BOND
School Directors Cautious
About Leasing the
Lincoln Lots.
NEW BIDS MAY BE CALLED FOR.
Possible Explanation of John W.
McDonald's Charge of
There Being a Job"
lie FAILED TO PROVIDE SECURITY.
The Boards Attorney to Draw Up the
Lease Monday Under President
Barrin gton's Direction.

The Board of Education seems deter
mined to examine thoroughly into the
bids for the lease of the Lincoln School
property, and it may be that at the special
meeting TO be held next "Wednesday all bids
will be rejected and new bids called for.
The bond for 800, 900 of the San Francisco
Real Estate Investment Company, which
was the highest bidder, Will be sub jected
TO the most rigid scrutiny, and unless
every surety on the bond is gilt-edged the
lease will be given TO the next highest bid
der or else they will all be rejected.
Fire Commissioner John w. Mcdonald
was the second highest bidder, his figure
icing $500 a month and $35 900 to be ex-
pended IN mprovements. At Friday g
meeting of the Board of Education Mr..
Mcdonald mani. .esled considerable feel
ing at being outbid and boldly asserted
mat there was LOB" in the lease. He
was pres ed for an explanation, but all
he would say was that if he
had been the successful bidder and
had secured the lease he would not
hesitate TO tell what the Job was. More
tnan that ne would not say, but a posi- bic
explanation was given last night by a
gentleman who has closely watched the
matter from The start. Inis gentleman
said 1t Was merely a suspicion on his part
and that he had no definite knowledge of
ii. but it might be that Mr.. McDonald's s
charge was due TO tHe fact that although
MS Did was within few dollars of the top
figure it was no. accompanied by any bond
ior the faithful carry ing out Of his part of
the lease. 1t was possible tnat this failure
to provide q bond was not an oYersig ht
but that the bidder might have an agree
ment with the next highest bidder to the
sN.N f,,r L.
it would be rejected because OF the 1ailurc
10 provide a bond and the lease would go
to tue others.
The next bid was that OF D. Keefe,
whose figure was only $3.50 month, $500
less than McDonGld's. There may not
have been anv collusion be ween the two,
but the gentleman above referred to re-
earded tnis as the most logical explana-
tion OF McDonald's assertion.
President Darlington of the School
Board said last night that on Monday the
attorney OF the board, Alex Vogesang,
would draw up the lease, under the direc-
tiOn OF the president and secretary of the
board, and have it in readiness to submit
al Wednesdays meeting.
He said that unless the sureties on the
bond OF the San Francisco Real Estate
Investment Company were entirely re-
sponsible, the bid would be rejected and
the lease given 10 either the next highest
bidder, or new bids advertised for. MIR.
Darlington SAID he knew P. J. Martin,
the president of the company, anu that
he was man of wealth and high stand
ing in the business community.
AT present" said Mr.. Darlington, 1.-THE
Lincoln School property is bringing in
about $500 month. The BUILDINGS are
III bad condition, and If we get $4,000
month l would conside il good stroke OF
business. Atthe last session of the Legis-
lature the board had bill introduced per-
mitting it to lease the property IN Ques-
ton for a term of fifty years, bu the bill
failed to pass. Had it done so we could
have made a lease that would have been
much more prof able than any We can en-
ter into under the present law limiting
leases to ten years, for a lessee would have
been justified in putting up substantial
buildings that would have brought good
income.
Il heard Mr.. Mcdonald say something
about job at Yesterdays meeting, but
he did not explain, and l am unable TO
see where the job comes in. 1t has been
stated that the advertisement calling for
bids was full OF loopholes, but have been
informed that the board has the power to
enter into private lease without adver-
tising for bids at all; so L don't see what
difference Y makes whether the ADVERTISE