Omaha daily bee., 1899-11-05
BROADWELL AS BUSINESS MAN
South Omaha Taxpayers Will Pay the Cost
for Years to Come,
SHkVsS WARRANTS, MANIPULATES BONDS
Sells city Bonds without Dids TO
Favored Brokers Mt Ridiculousiy
Low Premiums and High
Interest Rates.

Frank Broadwell, the fusion candidate for
dietrct court clerk. is making his campaign
before the public as business man OF eX-
ceptional qualifications This is his che stock
in trade and he is working it for all 1t is
worth. He may be all right e, far as his
private business affairs are concerned, but
as treasurer of South Omaha, according TO
the records, he has shown profound disre-
gard for the interests OF the taxpayers In
fact ho has been mixed up in questionable
transactions that in other cities would
have demanded instant investigation.
The business Of city warrant shaving in
South Omaha has grown TO Immense propor-
tions since Broadwell became treasurer o.
the Magic City and no employe or creditor Of
the municipality but who has been compelled
TO treat with Broadwell's friends In getting
his warrants cashed. 1t has become so no
torious, this business of warrant shaving,
by the clique which Brcadwell permits to
fatten off the city that an investigation has
several times been serisusly considered. And
1t is no secret that Broadwel himself has
had slice OF the pie openly, in some cases,
buying the warrants himself.
Shaving the City's Creditors.
Approximately 5000 Ct nth Omaha city
| warrants are now outstanding upon which
the taxpayers pay per cent interest. Hold
ers of these warrants are compelled to walt
! from one year to fifteen months to get their
| money or discount them with Broadwell's
warrant shavers. Although warrante have
/ lately been forced up to par by republican
| prosperity in most instances the pound Of
) flesh has been exacted from little and big
| alike and the select coterie grows rich
| through the assistance Of Business Man.
| Broadwell.
But playing in with warrant shavers while
no doubt profitable to those engaged in the
business can only be operated on a small
scale and Is not marker to what has been
done in manipulating the bond issues of
South Omaha. Since his incumbency Of the
treasurer's office 1t has been an unheard- of
thing with one exception, to invite bids for
proposed bond issues. The taxpayers have
been saddled with mortgages disposed of at
private sale to preferred purchasers with
out publication or competition. In every
other city in the country when bonds are
sold bids are invited and the highest respon-
slble bid accepted by which the taxpayers
secure the advantage of liberal premiums
warranted by the state of the, money mar
ket. Broadwells business administrator,
however, had disposed OF hundreds of thou
by private contract at premiums that are a
mere bagatelle, although the bonds bear
high rates of interest.
Flagrant Bond Mnnipulntions.
The most fragrant example of this system,
illustrating how it operates upon the tax
payers, may be found by examining the last
Two bond issues foated under Broadwell's s
treasurershp. On July l. 1899, he sold So
600 reflOdinu
interest, at a premium of 1915. This sale
was an exception to the general rule, be-
cause several bids were entertained and the
premium is doubtless larger than would
otherwise have been secured, although by
no means what the bonds should have
brought.
Three months later, however, October /,
1899, another batch of bonds were disposed
OF without bids. These bonds bore 6 per
cent interest, rate l per cent higher than
the others, yet the premium secured was
only $3.50 on an issue OF $22 300 If they had
been floated on the same basis as the July
issue the premium would have been several
times that amount.
All these bonds were negotiated through
personal friends of Mr.. Broadwell represent
ing eastern bond syndicates, that disposed
of them at much higher rates.
seven Per Cent Bonds Almost n Gift
The district paving bonds OF South Omaha,
which bear Z per cent interest, have been
disposed of under this same system in vari-
Gus amounts at premiums almost too rdicu- =
lous to mention. One issue of October l,
1897, of $4,000, brought premium of S1vJ.50
Two other issues of October /, 1897
bearing per cent interest aggregating
$4,000, were disposed of without premium
$12 900 of bonds issued November l. 1898
bearing per cent interest brought $50 pre-
MUM and another per cent issue of $685.
000 under the same date, brought premium
OF s175. District grading bonds of District
"a in the sum of $3.50 were disposed of Octo-
ber /, 1898, bearing per cent interest a
a premium of only So, and another batch Of
these bonds OF $21, ,00o issued a month later
brought premium of only S105.
1t is needless to say that the purchaser
of most of these bonds are largely the SAM
identical persons, the sales being mad
through two or three local agents of eastern
brokers, although in the case CT the distric
grading bonds some Of the contractors hav
taken them in part payment on their con
tracts. In the interval the taxpayers O
South Omaha will be defraying the expens
OF this business administration for the mex
twenty years.