Evening journal., 1899-09-28
THE CITY MAY SUE.
Will Stand No More Trihing
From White & Co.
JOINT MEETING LAST NIGHT

COMMISSIONERS ON THE MAT
TER OF BONDS-RESOLUTION
ADOPTED TO BE PRESENTED TO
COUNCIL TONIGHT.
"The expense of a suit would not be
great. and the city should vindicate its
fair name" said City Solicitor Conrad
last night at a joint meeting Of the
Finance Committee of Council and the
Sinking Fund Commissioners on the
matter OF the city bonds.
Worn out and disgusted with the ac-
tion of c. H. White & Co., Of New
York, regarding their purchase of the
$4,000 worth of Wilmington city
bonds, the two above-named bodies met
last night and took definite action re-
garding the matter The meeting.
which was held in the mayors office,
was presided over by Chairman Kane,
Of the Finance Committee, while John
s. Rossell. OF the Sinking Fund Com
mission, acted as secretary. City So
licitor Conrad and City Treasurer Ha-
mann were also present.
OUTLINED THE SITUATION.
Mr. Conrad briefly outlined the stu
alton as it stands at present between
the city and White & Co., and stated
that yesterday he had received a COM
munication from the New York firm
stating that its agent would be in Phil
adslphia to-day and that he possibly"
might come to Wilmington.
Accompanying the letter was an
opinion of its attorney, which was to
the effect that in his opinion the issue
Of bonds was Illegal, inasmuch as it
made the bonded debt of the city larger
than provided for by law.
Mr.. Conrad further stated that the
claim was without foundation, as it
was based on the law passed in 1874,
b.. which had been revised in 1883 so
as p cover the point Both he and Mr..
l-osse.. agreed that it was merely a sub
terfuge on the part of White & Co. to
repudiate their purchase. He closed
his remarks with the statement quoted
above
MR.. ROSSELL SPEAKS.
Mr.. Rossell then gave a review Of the
action of the Sinking Fund Commits
sioners in the matter. In part he said:
THE Sinking Fund Commissioners. in
conjunction with the Finance Commit
tee, have caused to be issued bonds to
the amount of $4,000 in the name of
c. H. White & Co. These bonds were
placed on deposit in the Union Ma
tional Bank, OF this city, and the offi-
cials Of the institution notified the pur-
chasers of the fact, but have received
no reply from them. The position in
which the city is placed by the action
Of the brokers is such that it must
either force the purchasers to accept
them at the figure named, or humiliate
itself by abandoning the issue.
'In case the latter course is pursued
It'll s a question if the next highest bid
der would take the bonds in the pres
ent high condition of the money mar
ket, and even il the lowest bidder ac-
cepted them, they would be put upon
the market as discredited securities. II
we reject the contract I would not
suggest putting the bonds on the mar
ket soon. am emphatically in favor
OF proceeding against White & Co."
RESOLUTION ADOPTED.
It was finally decided to embody the
matter in a resolution to Council re
questing that body to instruct the city
solicitor to institute legal proceedings
againstthe brokers at once if he deemed
it advisable. The resolution will b,
brought before Council at its meeting
tonight Mayor Fahey will be re
quested to sign the resolution.
When asked where the suit would b,
brought Mr.. Conrad stated that he wai
not quite sure whether it could b,
uiOubhl III blln JuAloulCNlOn VI llt 0lI
cult Court, or whether it would hav,
to be entered at New York.
Mr. Conrad also stated in reply to
question that another mode of proceed
ure would be to sell the bonds to th
next lowest bidder and charge the diff
ference to White & Co. This. however
he did not think would be an advisabl
plan.
THE STATE OF AFFAIRS.
That the Finance Committee o
Council and the Sinking Fund Commis
sionrs have taken the proper stand 4
the matter Of the purchase of cit
bonds by White & Co., of New Yorl
cannot be doubted for a moment
those who are familiar with the trans
action
The Sinking Fund Commission wa
created by an act OF the Legislator
passed at Dover. February 9, 1856