BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1901-10-14

the loan. the Executive Council shall first
SCI upon such proceedings the seal Ct its
approval. Then it is, and only then, that
the city is in the condition to 60 before the
public with q definite proposition bearing
the sanction of the Executive Council, and
invite bids. ).
1t must be obvious to any person familiar
with such matters that any prospective
purchaser of bonds Of this class or character
would not for a moment think of entering
into relations with the city until such con
dition, as provided for by Section 8 OF the
Act. had been observed. This Section isl
prohibitive and mandatary and admits oil
no departure from its terms. According toI
the laws OF the United States no principle
is more deeply established than that which
rtoujles scrupulous observance and al
strict construction of the laws authorizing
tie issuing OF bonds, or the creation OF In
debteduess by Municipalities for large sums
of money.
1t mnst be admitted that there has been no
public advertisement for bids or propositions
for tie purchase OF these bonds; there has
not been even a request published in the
local newspapers in Porto Rico inviting
such proposals. 1t may lie true that some
officials of the city endeavored faith
fully and earnestly to secure bids trcm
parties knomn to bim or thempr within
reach, but this does not exuse the failure to
invite bids in those places and from those
persons whence bids are most likely to te
/ received. 1t is not to be expected that pur
chasers of SIX hundred thousand dollars
worth of bonds are apt to he found, to any
Igreat extent. in Porto Rice; nor should suck
purchasers be limited to such few individ
|uals as might come within the list of
lacquaintances of municipal Official.
There is an established market for this
lclass Of securities, and any proposition com
ling from a city duly authorized to invite
proposals will receive. as a rule, spirited
competition. The smallest municipality in
the United States before issuing bonds ad
veriises in those districts acbere competition
may be expected, and ample time and eppor
tunity is given oil persons interested to
. present their bids.
This is demanded, not only by positive
statutes, but by the plainest requirements Of
Justice to the interests of the tax payers. II
will not be sufficient excuse to say that
: these bonds had, at one time, been offered
persons now complaining of the procedure
in this case. Even if these bonds had been
offered by the City or its officials no bus;n
ess man of ordinary common sense, would
accept any proposition without knowing thai
; first The Executive Council had approved
of the s.purpose of the loan, the form Of the
bond, the rate Of interest, the several o:hel
requirements of the Bond Act, arr the action
of the city proceeding Hereunder"
To have tntered into any relations until
the Executive Council had acted would be
Objectionable for three reasons 1sf.-Be
cause it would be absolutely invalid. End
Because the bidder would be making pub
: lie his bid for subsequent bidders to take
advantage of. 3rd;--No contract could be
ltgalIy executed binding the City.
How can it be claimed seriously that
because the City of San Juan entered into a
contract through its attorneys with Messrs
6 Ferna'd s. Company, it could now be com
PEELED to specifically perform its contract,
shen, by the very provisions OF the Act herein
before cited, the City could not incur any
Indebtedness until the Executive Councial
had approved of the same
The Executive Council stands as guar
anty for impartialty, fairness and observ.
duC6 VI Jug idWs cIc bHiS ptOCcouluS ~
be approved, the public would be deprived
of the opportunity to bid on these bonds and
the tax payers who must pay the same
must suffer thereby.
The credit, not only of the municipalities,
but Of the Island would be impaired, and
the impression would 60 abroad into the
financial centers of the United States that
Porto Rico was not place for open and
public competition, but only for him who
may have pull, or some special means Of
securing his ends. These are not the means
of making Porto Rico safe and attractive
field 70. the Investment Of impartial capital
While tie tax x-payers OF the City are not
now before this honorable body complaining
of this matter in person. it is believed that
their interests are always present IN the
consciences of the members of this body,
and that they need no pail lawyer TO secure
their rights before this Council. They con.
fidently expect that the Executive Council
will order public letting OF these bonds and
thereby save a large amount of money.
There has already been made bid of IF
teen thousand dollars more than that made
by Farnald & Company. 1t is only fair 10
assume that public letting would result in
still creator economy and saving to the City
and its taxpayers.