The Jersey City news., 1901-12-12

EURST And LAST.
Dry Goods Bids as Viewed
By Merchant and
Lawyer.
GAS BOND VS.. BANK CHECK
The County's Loss Variously
Figured as ST. 900 and
1929.

1T mas Deen customary 70 uepoSil Liz
certified checks or the cash to guarantees
the bids with County Collector Hugh Du-
gan. This was to prevent any possibility
Of losing either the checks or the cash.
On Monday morning l met Mr.. Dugan and
said: Mr.. Dugan, want to make de
post withsyou.' He said, All right.
salad, VIII Hudson County Gas bond
for $, 900. llich can be sold in the open
market at q ny time for $1,025, be as salts
factory as $1,000 cash? He said, Ger
tainly, went to the Third National
Bank, and instead of getting $1,000 in cash
or check got one of my gas bonds
delivered this to Mr.. Dugan and got from
him a receipt for 81, 600 cash. HIS receipt
read, Received 81, 900 to guarantee bid
want to say right here thai l couldn't
withdraw that bond without the f'reehol-
ders consent, either that day or any other
because 1t was deposited to guarantee the
bid
ION the bottom of the bid / wrote. Have
deposited this day with County Collector
Hugh Dugan s., 600 to secure above bid.
cat six o'clock that evening they tele-
phoned me from the Freeholders office
that my bid had been rejected because a
certified check had not been enclosed.
answered that 1 had deposited $1,000 with
the County Collector and asked them to
report that fact to the Freeholders. They
said they would.
.gThe next day at noon I went to the
Freeholders' office and said: What's all
this talk of nformality in my bid?' They
said: The check should have been en-
closed l explained about depositing the
check with the County Collector and they
said it was al in the hands of the Com
mittee on Bids l went away then relying
on their statement and I heard nothing
more until l was informed that my bid
had been rejected and the contract
awarded.
Il believe that I could go to court and
get the award but there isn't enough
money in it at my prices to make it worth
while. But feel that in the interests of
the public I should interfere.
Now, l wouldn't say anything about 1t
if they had given the contract to a
reputable firm-understand, say most
emphatically, a reputable firm, or to the
next highest bidder to me. But they
didn't.
What makes their conduct so mex
cusable is that they gave the contract TO
Mr.. Ignatius Noonan, under the name OF
Prendergast, and to Mr.. Flannigan under
the name of Flanagan Compay, neither
of whom is in the dry goods business nor
connected with any dry goods f1rm. l
haven't had chance yet to Hgure prices
! but | am sure the difference between the
prizes 1 gave and those of Mr.. Noonan
and Mr.. Flanagan would more than
cover the 81, 600 which was to have been
, put up.
| Mr. John Griffin, counsellor to the Board
| of Freehoders, gave out today the fol-
! lowing authoritative statement in regard
| to sdr. Furst's charges
Mr.. Charles Furst criticized the Board
! of Freeholders for not entertaining his
bid for dry goods.
| In advertising for bids it was expressly
! stated that each bid should be accom-
! panied by cash or certified check to the
amountsof ten per cent. of the bid; if the
cash or certified check was deposited
with the County Collector, the receipt OF
/ the County Collector should accompany
| the bid.
| Experience has taught the Board o.
Freeholders that these are safe, and prac-
! tically the only safe rules for bidding.
AT one time instead of the bid being ac-
| companied by cash or eertified checK
the bidder was required to furnish an
/ agreement of surety that he would sgn
a bond if the contract was awarded to
1 the bidder, but sometimes the surety pro-
I posed was worthless the bidders woulo
refuse to sign the contract, and they were
/ in a position to snap their fingers at the
Board. To obviate this difficulty the plan
of having the bid accompanied with casn
! or certified check was adopted ano
J the virtue of this plan can readily Dt
seen when it is stated that one gentleman
4 whose bid was accompanied by certl-
fled check refused to execute the contract
and the Board thereupon bought the
/ goods at his expense, using his certifee
| check to make up the difference betweer
his bidding price and the price that tne
county had to pay for the same articles.
! The plan is simple, it works hardship
on no one, it absolutely protects thu
i county, and, in order that no one shou-t
be deceived, it was expressly stated II
8 the advertisement that bids not accom-
panied with a certified check or casf
1 would be treated as informal, meaning
l thereby that no contract would be award
ed to any bidder who did not furnish
4 with his bid the cash or check.
i Mr.. Furst is an old bidder, and I an
surprised that he should make such 6
mistake. When his bid was opened i
was not accompanied by either the certi
4 fed check cash or receipt of the Coun-
ty Collector; the clerk thereupon passed
! the bid as informal. But feeling thai
4 some mistake was made, and knowing
j Mr.. Furst to be a large merchant in Jer'
sey city, / called him up on the tele
phone. and he replied that at the foot o.
his bid was a statement that the money
had been deposited with the County Col
Iector Hon. Hugh Dugan. His bid was
/ then taken up and read, and az the 100
4 of it was written as follows: :-"One. thou
| sand dollars has been deposited witt
/ County Collector; hold receipt.
Acting upon the advice OF our counse
i the bid was then read, leaving the ques
ton to be determined whether or no
was not accompanied by the receipt OF tn
County Collector.
Had this money actually been deposited
with the County Collector We might no
have had much difficulty in solving th'
mattersS4n Mr.. Furst's favor; but. on IN
quiry, we ascertained that instead Of de
posting cash or a certified check with thu
County Collector ne had deposltea ga
4 bond.
Without going into details as to whethe
i ar not this bond was of such negotiable
4 character that If Mr.. Furst declined {:
Il execute the contract the bond itself coult
i be sold by the county and the proceeds
used to make good the difference btweel
4 General debility failure of the strength Z
4 do and the power to endureis cured by TIL
-. 1.tc c<oru - Ia