New-York tribune., 1907-09-12

before he changed IL to Winter
Mr.. Butler showed good deal of deIicacy about
discussing the subject. but finally said:
1 would prefer to not discuss Mr.. Whites fam
iiy affairs. but will say that Mr.. Whites name
was Abraham Schwartz when he 4 young
man He changed his with the consent of
his father and the courts in Texas"
Where did he live in Texas?"
He born in Corscana, I think. and spent
his boyhood there. He in Boston when the
Federal government advertised the sale OF bonds
In 1925. and his venture then without financial
backing attracted good deal Of attention. He is
called Postage Stamp White. but in submitting
his bid in 1895 he die others did. no cash de
post being necessary"
Il called at the Controllers office at o'clock this
morning. said Mr. White last night. and waited
there some time TO Controller Metz remaining
until was Informed that the Controller would be
delayed for several hours In reaching his office
day desired to obtain information relative 10 the
allotments that would probably ne made AS the
bids were not all published Tuesday evening or
Wednesday morning il difficult determine
Just how the matter stood II necessary to
ascertain least approximately the of
bonds the Abraham White Bond Company would
be entitled under It's bid arrange definitely
the financing Of the bids. foreign finance bills
being arranged for good part of the
! was told at the Controllers office II would
take time determine the status OF the bids
and the respective awards
Then came the reports during the day Of the
conferences the subject of the bids of the bond
company and the rights of the bond company and
the security COMPANY Copies of the charters of
these companies gladly furnished. and II was
seen that they were very broad and the companies
properly organized under the laws Of the State of
New York. Heretofore the Abraham White Bond
Company and the Greater New York Security Com
pany had bid for both government and municipal
bonds. and had in every respect complied with the
requirements.
The draft for ssooooo was reported held UP pend
Ing the discussion and conferences regarding the
bids and the matter not disposed Of until quite
late in the day. when, just a few minutes before
5 o'clock. the sSoono draft vas presented and pay
r1ent was demanded in cash.
This was an unusual proceeding and entirely
out Of the ordinary custom. alotments had
been announced at that time. and naturally pay
rnent on draft not in order until the bond
company had been officially notified that II would
receive the bonds. There was probably not another
case Of this kind instance of this character,
so far demanding payment was concerned on
any other Of the aTa bids received The Abraham
White Bond Company stood ready 10 take care ~
the bonds in the usual way soon as notice would
be received Of the allotment
HINTS AT CABAL AGAINST HIM.
There were reports sent out to-day Of contem-
plated Injunction proceedings 10 prevent the Ahra
ham White Bond Company from securing the bonds
on their bids. and this information came out pub
ncly over the Wall Street news tckers. evidently
for the purpose or rendering the financing Of the
bids difficult possible. This announcement
was made through Wall Street news service:
Tt 10 understood that Abraham White. who
through the Abraham White Bond Company yes
terday afternoon submitted bid for i40oen.eo city
bonds has been visiting Wall Street bond houses
to-day endeavortng to dispose 81 part Of the IS
sue which he expects TO receive II will not ne
known until after o'clock whether or not ~"
certified check on the Greater New York Security
Company for $500 100 will be honored. In case tho
check Is honored and the award made some of the
-1a threatened bring in1uECf on
PROCEEDINGS to prevent the delivery of IN" bonds
to white on the ground that his bid was defective.
alleging that Greater New York Security Com
pany is recognized banking corporation
Controller Metz evidently animated by the
best Of motives. and earnestly desirous Of conserv-
ing the citys best interests. and At the same time
anording bidders protection but II is question
whether the proceeding to-day was legal OF not
and this Will probably have 10 be determined later
as the bond company seems 10 have been singled
out and made a target for attacks by powerful
financial interests in the Street.
IF payment had been demanded IN cash to-day
on the checks and drafts accompanying the other
bids probably no exception could he taken 10 the
action IN the case Of the bond company, but We
are quit. certain that the latter singled out ~
all the bidders and unusual proceedings were taken
IN this case To demand payment in cash OF such
large amount Just before the close Of banking
hours without any notifications Of the allotments
aa previously stated was an unusual proceeding.
We ar, informed that have certain legal
rights In the premises. but unlike the people op-
posed to US. not disposed TO entangle the
city in any legal complications nor take advantage
Of any technical legal position to enjoin the
other awards and prevent the city from getting the
money which is so urgently needed but our rights
can q determined later.
.If the usual notification had been sent 20 US the
money on the bids made by the Abraham White
POND Company would have been duly paid to the
citv Payment was refused on the Greater
New York Security Company draft. hut. on the
contrary the parties presenting II were told 'ha'
& was perfectly good, and were requested 10 Iea"e
the usual bank notice for the same. which they
refused 10 do demanding Immediate payment.
-rba certificate of incorporation of the Abraham
White Bond Company filed in this city on be-
cember 10. 1896 The objects Of the company are
10 issue on commission. subscribe for, take ac-
uure hold. sell. exchange and deal In STOCKS
grain cotton. provisions. etc and 10 issue on com
mission subscribe for. take and acquire bonds ana
other obligations OF any government authority or
any company. The company had a capital STOCK
of $4,000 The iacorporators were Abraham White
Henry B Wilson and Francis Y Butler
A number Of contractors TO whom the city owed
something like 5000 in June, who accepted SIX
tv-day notes visited the Controllers office yester-
day said they needed tho money II II YVES
forthcoming. II explained to them they "ouiu
receive the money the minute the money from tne
bond sale became available
Following the publi~. MS Of the facts concern
ing Tho hid Of the VII Bond Company. the law
firm Of Marx. Houghton & Byrne, of No. 20 Broad
way started TO execute judgment for $500 tney
had obtained against White by default six weeks
ago for rent. a suit by James r and Wlilanl D
Stewart owners of apartment house in RlVer-
side Drive They alleged that White owed them
for months
A member of the firm % Marx, HouGhton q
Byrne Mutual Lrfe Insurance Company
was bringing foreclosure proceedings against Wm'e
and his syndicate. which bought the late John A
horne a4 Eran