New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-08-24
THE BOND BID LITIGATION.
JUSTICE COHEN HEARS ARGUMENTS AND
RESERVES DECISION

JUSTICE COHEN HEARS ARGUMENTS AND
RESERVES DECISION.
Arguments were heard by Justice Cohen in the
Supreme Court yesterday on the applications lor
iniunctlons to restrain Controller Ccler from oe
livering the city's bonds. amounting to nearly
s12 ooo go which he recently awarded 10 the
/ Produce Exchange Trust Company at lOiA YER
milve & Co and Kuhn. Loeb * Co. " no BID ls'o5
for the entire issue conditionally. and Aimmer-
man & Forshay. who bid over l07 for TWO Io's
amounting to 100000 made the applications LOT
iniunctons Assistant Corporation Counsel Con-
molly appeared for the Controller and for the city'
Delos McCurdy appeared for the Controller indi-
vidually The Produce Exchange Trust company
was represented by ex-Judge Edward Browne MI
Hughes and Mr.. De Witt. George W. Wickersh"i"
appeared for Vermilye co.
The argument was opened by Mr.. Wickersham
who gave a detailed history OF the complicated
proceedings from the time that the different DID,
ders sent I'm their tenders for the bonds lie the"
stated that there were. In his opinion only TWO
offers 20 be considered by the Controller those VI
the Produce Exchange Trust Company ana Oh
VermiIye & Co and Kuhn Loeb & Co. as these
were the only two bids for the slZ''""o o ~
TO be awarded
The whole question to be decided was the enect
OF the condition In the bid Of Vermilye x 90 anu
Kuhn Loeb & Co Counsel quoted authorities 10
show that these corporations were justineu III
making the reservation to which the Conuouer
objected. and that he should nave """'"0 ~
them the bond issue.
Mr. Wckersham read at length from o'ieis
quoting decisions from the courts OF po'h tii's
country and England All Of the decisions ne
commended were in favor OF the claims mace ny
Vermlye q Co and Kuhn. Loeb Il CO.
If We are right in our contentious sain MI
Wickersharn then the charter makes certain
conditions follow The Controller In this case au
vertised for bids for these bonds. The BIDS were
sent in as called for Now. what are the rights Oh
the persons who made bids for all OF the oolus s
The charter is very plain upon the point. oIts
was q legal bid. and We should have peeh a"nrueu
Section l2 OF the charter. which relates 10 JUST
such cases as this says that the Controller must
issue the bonds to the highest bidder Al.sr u,ar
may exercise is merely one Of arithmetic lie can
not his discretion as to whoin ne Dones ar4
must be made the highest bidder We CAIN
that We are the highest bidders and are therefore
Mr Hughes followed Mr wickersham and CON
tended that the Controller was Justified In reject
ing the vermilye bid on account Of The condition
. contained therein. and IN awarding the bonds 10
/ cor,plied with an the conditions laid down as 20
the sale Of the bonds without any reservation, lie
/ argued that the city not 10 be compelled 70
sell the bonds subject 20 the opinion of private
counsel for an n,er..rf RsrG Controller was with
in his rights in watdns The s99 5d ve Tns ~4 bs
Assistant Corporation Counsel Connoly opposed
the motions on behalf 81 the city and of he Con-
aprllcat,ons were made was unienabe. and that
| fhs remedy ~ Vermilye & co was not by inJunc,
ton but by an action for lofs sustained lie said
that II would b. "A serious matter. and most pr"ju-
dlcia 10 the interests OF the city II this issue Of
/ bonds was to be held up for considerable time
/ until the suit for the injunction was finally dis
/ posed OF.
& CO. presented argument In favor OF the
/ granting ~ the injunction on behalt OF Mt Read
/ In his action as a taxpayer. Read. he sal. while
| Interested in the issuance and delivery OF the
| bonds to Vermilye 4 Co. was perfectly withia MS
/ right taxpayer
/ Delos McCurdy Controller Coler's personal coun-
sci opposed the motions He declared that the
! plaintiffs had made any allegation that they
| had or would suffer any rreparable injury by the
/ action OF the Controller and that this omission
| was fatal TO their applications for injunctions.
! Justice Cohen then took the papers and reserved
] - drcislnn