Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-18
BIDDER FOR BONDS
APPEALS To COURT
Would Enjoin Secretary of the
Treasury.
CITATION TO SHOW CAUSE
Petitioner Alleges He Bid for Issue
to Amount of $3,0O0,0O0.
CHARGES VIOLATION OF LAW
No Allotment Made to Him.
Although He Claims He Conn
piled With Requirements.

piled With Requirements.
Justice Gould of the District
Supreme Court today cited
George B. Cortelyou, Secretary
OF the Treasury, to appear in
court Friday, January 3, 1908, to
show cause why he should not be
enJoined from turning over or de-
llverlng the balance of $2I,4so,ooo
OF the Panama canal bonds to GER
tain banks and persons to whom
he has announced allotments.
The citation authorized by Justics
Gould is based on a petition Of George
w. Austin of New York, who describes
himself as taxpayer and property owner
in the United States. and who declares
he made proposal to purchase bonds of
the advertised issue to the face value Of
S3,0OO.OOO. He AYERS he agreed to pay at
the rate Of $103.375 and accrued interest
per $780, and on notice of acceptance OF
his subscription stands ready to deposit
the amount with the assistant treasurer
of the United States at New York.
Mr.. Austin. by Attorneys Gittings q
Chamberlin of the local bar and Henry
NJ. Earle of New York, informed the
court he has been advised through the
public press that. in direct violation of
the statutes. and in absolute disregard OF
she me department's circular No. 90. of the
$2o 100000 of bonds allotted, onIy
$1,O00OO0 were allotted to natural per-
sons, who were individual bidders for
same, and who, in accordance with the
statutes and circular. were given an equal
opportunity to subscribe therefore; the re-
naming s24 .OO0, 900 were allotted to divers
national banks throughout the United
States, and only s., $50, 600 of which were
allotted to banks at a price higher than
that bid by him. -.
Declares He Was Ignored.
When he learned that his bid had been
ignored and no allotments made to him.
he says, he complained to the department,
and its response convinces him of the
Secretary's intention to disregard tho
statutes, and thereby commit a mall
feasance,'s for which, he says, he is ad-
vised and AYERS Mr.. Cortelyou Is mot a
man of suhicient means to answer to the
citizens of the United States" and to
him.
The complainant tells the court that
November 23 last he procured from the
assistant treasurer of the United States
at the city Of New York blank form
Of proposal for bids for the bonds. and
In good faith and with a full understand
ing OF his obligations and rights in the
premises and knowledge OF his full and
complete ability to comply with the terms
OF the circular made a proposal to pur-
chase the BONDS to the face value of
the rate of $1O8375 and accrued interest
per 500. and further agreed, upon due
notice Of the acceptance Of his subscrip-
tion to deposit the amount thereof with
tv>an
States at New York, and in strict Accord
ance with the terms Of the circular.
Advised by Press Of Allotment.
THE complainant says he was advised
through the public press the sth day OF
December 1907. that the defendant had
allotted all Of the bonds that he intended
to allot Che having advised the public by
notice in the public press that he WOULD
only only aiiot S25, 600 900, contrary to and in
direct violation of the acts Of Congress
nereinbefore referred to, and directly con-
trary to the terms of the public circular-
issued for proposed bids for the bonds
whereas II the defendant had complied
with the terms of said circular and the
said statutes, your complainant, SO far
as he Is advised. would have been entitled
to have been allotted the bonds bid for by
him, and at the price and upon the terms
set forth, all of which would have been
greatly to the material interest and BEN
eft of the United States, and the citizens
thereof, as we'll as to the benefit of, and
In accordance with the rights of, your
complainant
Result of Inquiry.
December II last, when first advised Of
the Secretary's action, Mr.. Austin says, he
made inquiry and received in response
reasons which plainly, he declares mani
fest the defendants intention to abso-
lutely violate the statutes and to disregard
said department circular No. 6S, contrary
to the interests Of the tax-paying citizens
Of the United States. and his interest in
particular. as well as the interests Of all
others who had bid at a higher
figure than those to whom the de-
fendant had allotted the bonds.
and particularly one George A. Roman.
of the city of New York and a citizen of
the United States, whom this complainant
knows bid in exact conformity with the
terms of the department circular for
81 ,OOOOO at 1925, s1,0O0,OO0 at 10350.
and whom your complainant is informed
and believes and therefore states is re-
sponsible party. perfectly able and willing
to meet all and every obligation in connec-
ton with said bid. but who has been, con-
trary to law and the interests of the
United States and the citizens thereof.
wholly ignored by the defendant.
Another Bid Ignored.
Your complainant is further informed
by the parties and verify believes said
information to be true. and therefore
states that said Romer made a further
bid for the purchase of an additional
81. .OO0. 900 of said bonds at the price OF
103.625. which bid was also ignored by
said defendant, in direct violation OF said
acts of Congress and department circular
No. IS, wherein and whereby the United
States and the citizens thereof, ire
spective of the rights of said bidder. had
been deprived Of and will be deprived and
defrauded of several hundreds OF thou
sands of dollars
To reporter for The Star. who called
this afternoon at the residence of Secre-
tary Cortelyou, 2111 Bancroft place north
west to solicit an interview on the matter
referred to- 1t was declared that Mr.. Cor
telyou. though resting easily. was too III
to see any one. and would be unable TO
receive any callers for several days. II Is
said the attack of grip from which the
Secretary is suffering has R been nhvsician. sss
m w q p Hazen, has ordered complsee