New-York tribune., 1900-06-29
REPLY TO THE CONTROLLER.
OTHER PRESENTATION OF THE
BOND CASE

j. Edward Swanstrom, attorney for Mr.. Mack
made statement yesterday in reply to Controller
Coler's answer to Macks charges Mr. Swanstrom
says that the Controller has been frank in his
attitude toward the charges. The Controllers con-
tention that he had been vndicated by the courts
was set down as false, because Mr.. Coer in his
haste to make the bond issue award did not walt
Tor the courts 20 decide. Mr.. Swanstrom declares
the Controller wants to SHIFT the by pretend
ing that the charges of different nature from
those made. An instance OF this is given In an
other statement issued by the Controller. He calls
attention to the fact that he has just awarded
S1S50o Of bonds at 11054 for the whole issue there
being in addition two small bids Of 81 O0O each of
which was higher than the proportonate bid of
the successful bidder. The statement accuses the
Controller of intimating that if Mack's charges are
sound he would have been obliged to have awarded
5000 Of these bonds to the two small bidders and
then readvertised the considerable ex-
pense to the city. 1t is denied that Mack makes
such a charge The reply reasserts that Mack's
charge that in the bond sale made in July. 1898
the Controller threw down thirty-one respon-
sible bidders, who offered take not a small frac-
ton of the issue, but twothrds of the whole
of s26S 1892 36 at premium of $685. 24S as against
$n4219 for the amount of bonds offered by the
Controllers syndicate. difference of S22S OPS sum
sufficient. Mack points out. to build three pri-
mary schools.
The statement continues:
Controllers defence cannot help seeing its iimsy
syndicate becanse it BID for ali the Bonds Wbe 9ie
the thrty-one applicants bid for only two-thirds
or the issue. But in his advertisement of the bond
SAFE ne expressly invited bids for the whole or
part, and expressly reserved to himself the right
to determine what If any, part of said proposals
shall be accepted
Now. ordinary citizen might have supposed
that when these bids were opened the Controller
could have said to the members of the aforesaid
are thirtyone bidders for wo-thirds OF the issue
who offer S222O29 more than you do for the same
proportion of the issue-in fact, they offer pre-
premium foI the whola. l must, therefore in the
interests of the city, award twothirds OF the
70 tnen' put yon can nave the remaining one-third
If that course had been pursued the city would
n have ave m received a premium of approximately
the city of 100000 But if that course not pur-
sued the remaining bonds should have been read
have been far more to the advantage OF the city,
because with the confidence inspired by the sale OF
two-thirds at premium approXimatng lO8 the re-
naming one-third would have been competed for at
the same a greater premium thus enabling the
city to obtain still larger profit.
The Controller was apparently not satisfied with
sought advice of private counsel If every head
of department did the same thing the city's bust
troller also admits that the Indebtedness Of the
new city had nothing TO do with the issue OF the
when he was issuing statements to the effect
that the city overbonded?
The fact is that these bonds were issued for con-
tract obligations OF the old city OF New-York and
hence would have to be paid even If the city had
exceeded its constitutional limit OF Indebtedness.
This the Controller knew, and yet he persisted in
of Indebtedness without making exception of
these bonds so that intending investors would not
II the charges made by Mr.. Mack have other
effect than to abolish the iniquitous method of
rendered great and important service to the
community.