BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1901-10-15
Executive Council Rejects
The Proposal d F9rlaa { e
Public Auction AS Advocated
by the Boletin Recon-
mended.
Unanimous Vote.


The Executive Council at meeting held
this morning rejected The proposition made
to the Municipal Council Ct San Juan, by
Fernald and Compsny of Boston for the
floating of the loan ofS600,0 900 by this nun.
icipality. The Report OF the Committee
on Finance and Appropriations recon
mendiDg the reflection of lhe proposal, was
sigued by both the members now in Psrto
Rico, Messrs Barbosa and Garrison. The
Auditor wrote the opinion, and DIR. Barboss
joined In the Recommendations made
therein. Upon the presentation of the re-
port to the Executive Counc,l a vote was
taken, and every member voted to adopt the
report
The members o. the Finance Oommitte
recommended that the proposal made by
Fernald 81 Co, be rejected, mainly 70. the
reason that the law called for the floating
Of the loan at par and that the proposal IS
made by FeFnad and accepted by the City
Council did not comply with the law in that
repect. 1t is regretted that space at this
time prevents the publication of the entire
report, but we publish herein the most sal
lent paragraph of the Committees conclus.
ions in the matter:
In the opinion Of your committee the
plain, direct and positive requirement. of the
statute that s'ike bonds must be sold at not
less than their par valueD is controlling aud
cannot be evadad. Aud without any dis
cussion OF the roint which has been strongly
urged, that the section of the royal decree,
contained in the laws relating to the Civil
administration and Governments OF Porto
Rico, which requires all proposed loans on
the part Of municipalities to be advertised
at least thirty days, is stll! in force ard OF
binding effect; aoe believe that the fair and
reasonable intsndmeLt of the statute provid
log tnat 'sthe bonds must be sold at not less
than their par yalue," requires that The
usual and ordinary means employed ia
negotiating loans, by advertising, snail be
resoried 10, in order that the muoic,pality
shall realize from the sale OF the bonds at
least the full amount required by the Statute,
the par value OF the bones sold, aud all
above that rate which may be secured by
public competition.
We do not wish to be understood as indicat-
ing that the municipality in negotiating u
loan and issuing bonds may not pay for
the necessary actual expenses incident to
such negotiation aud iksae including reaso-
nable commissions, fom separate fund
under its control, in accordance with The
usual practice Of negotiating municipal or
other loans, under laws similar to the stature
OF Porto Rico, requiring that the bonds shall
not be sold for less than their par valus.v
The stand taken in this matter By the Ex
ecutive Council and the COMMITTEES on Fin.
ance is Of much more mportsnce to this
island than tie mere San Juan loan would
seem to Indicate. s.sS
ltassures open competition, square dealing
and absolute obedience to and compliance
scith the spirit and the letter Of the law.
The best proposition Jet made to tho City
e to take the bonds st par and charge SIS.
600 fcr counsel fees and blank bonds; but.
there are other firms anxious and Eager 70
enter the field and take the loan, There Is
every indidation and promise that the City
Of San Juan viii be able to h9at this loan
at par, as he law requires, aud there is
large probability that premium may be Of 1
fsred on It.
Toe Executive Council needs no recon-.
mendatious Tor having done ils dnfy.
Tue men constituting that body are Of too
sober temperament, end too we'll YeIsed in