The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-07-29

| The school board last night rescindec
It's action in awarding the s25O,00O bono
issue to Dick Bros, of New York city
and re-awarded the bonds to Newbergel
Bros. G. Henderson. of Philadelphia.
The latter concerns original bid was
higher than that of Dick Bros, but the
latter secured the issue by promising
to Immediately advance 100000 to the
board. Their Mr. Alexander represented
them at the former meeting and made
the offer.
Last night Alfred Newberger. of the
Newberger Bros. & Henderson firm was
present at the meeting, and made the
board his former offer, supplemented
by check for 100000, to be advanced
the district, without interest until Aug.
Is, when the bonds are to be delivered
A good deal of debate followed his
speech. 1t resulted in the adoption OF
motion resembling the boards former
action. Mr.. Jayne moved that bids be
readvertsed for but his motion was
lost and Mr.. Welsh then moved that
the present highest bidders offer be
accepted, which was adopted.
Mr.. Alexander and Attorney l. II
Burns, representing Dick Bros, both
protested against this. Attorney Burns
declared that any such action would
not only be unfair, but also direct
breach of contract, likely to involve the
city in litigation. Mr.. Dietrich, repre-
senting Kleybolte & Co., third best bid
ders, also protested against any action
being taken until his firm could place
another bid.
The first action taken last night in the
toy ha I
co.'s of the finance committee made his
report. Since the meeting Of two
weeks ago, it seems that Dick Bros
have been in communication with the
local authorities, and have asked that
various technicalities be amended in
the original terms of the bonds. These
We're made and read last night. They
specify that the city shall levy for the
year 1908, and every year thereafter
three-tenths of mill on all taxable
property in the school district, to realize
sum equivalent to the principal and
interest of the bonds, and if this levy
is not sufficient, the rate shall be in.
creased to a sufficient amount.
MIR. REEDY'S OPINION.
Mr.. Francois read an opinion from
Reedy on the matter, in which the de.
sired changes We're suggested AS the
oringinal wording Of the resolution only
provided for the levy of one year, and
did not specify the amount this hhd
to be amended, and was one of the
points raised by the company.
On the request of Mr.. Jennings, a
recent letter from Dick Bros. was read
1t stated that the terms of the reso-
luton would be favorable, if the
changes suggested by the solicitor were
made, and was accompanied by check
for S1O0,1SO.S2, tine odd sum being the
interest from July II to July 2S. They
asked that temporary bonds be granted
them in return.
Said Mr.. Jennings: "Their actions
since the last meeting have practically
amounted to a refusal of the bonds
as provided for in the resolution we
originally passed. 1 move that the fl.
nance committee be instructed to pre-.
pare resolution which will fully com.
ply with all the requirements of law
and do away with all the firms objec-
tions. AS we understand it, Dick Bros
Il Co. will not take the bonds, accord.
ing to the old resolution. Well, we
want to clean up matters and make q
fresh start"
After some debate, the motion was
passed, and the committee presented
the resolution, given above. Mr.. Hand
had declared he believed the proper ac-
tion to take would be to nullify the
boards action in awarding the bonds
to Dick Bros. & Co.
After the adoption of the commit
tees report, Mr.. Jennings moved that
the board reconsider it's action of the
last meeting in awarding the bonds
and the motion was carried, after a
good deal of debate. Mr.. Jayne argued
long and earnestly that the award had
been made in perfectly regular and
legal manner. mo reason has been
given for reconsideration" he argued
1.-The company has presented its check
not only for the principal amount, but
for interest, and has fully complied
with it's side of the argument. We
need that money, and need it quick.
He moved that representatives OF the
companies be allowed the privilege OF
the floor.
JENNINGS CONQUERED.
Mr.. Jennings echoed Mr. Jayne's SEN
timen.s about needing the funds and
remarked, If there was any other
means of raising the necessary money
| would never vote for this resolution
as l believe the companies are all maxi
ing improper requests, when they ask
us to make three-tenth of a mill as
sessment on S65,O00,0OO valuation
However, l don't believe the board Is
bound in this matter by any previous
action, seeing that the conr.- has
virtually refused to take the bonds In
their original form"
Attorney Burns then was allowed the
privilege of the floor and informed the
board, with considerable Yigor, that
they We're legally bound by contract tC
sell the bonds to Dick Bros. you cam
not abrogate a contract" said he
Moreover, the company never refused
those bonds. They simply asked you
to finish what you started out to dc
and make the bonds legal,
You aren't treating us fairly er
you try to wipe out a contract mac ! ~
selling us bonds not fully legalized, In
| order that you can sell the legal bonds
to another bidder. We insist we have
a contract, and contracts must be kept
Come to US like men, ii you wish to
and we will be glad to talk the matter
over with you. But you cannot do any
thing of this sort II YOU wipe out al