Los Angeles herald., 1908-09-17
Trust Company Urged to Withdraw Bid and
Allow Issue to Be Submitted to All Buy
ers Without Favoritism Being Shown
FIGHT AGAINST DEAL CARRIED TO COURT
Solid Three Indicate They Will Stand Pat Chair
man Patterson Still Insists Purchase Was Legltl-
mate Act and Gives Impression That De-
mand Will Not Be Heeded-Says Money
Will Be Spenton Advice of Other Body


with twelve of the fourteen mem
bers of the advisory board present, a
meeting of that body was held in the
directors room of the Chamber OF
Commerce yesterday and resolutions
were unanimously adopted calling
upon the board of supervisors to re-
scind their action in disposing OF the
$3,50O, 900 good road bonds to J. II.
Adams e. Co. and the Los Angeles
Trust company.
Fearing that the supervisors might
disregard the action of the board ana
carry out the transaction by placing
their signature on the contract Tor tne
sale prepared by Hartley Shaw, chief
deputy district attorney and legal ad-
wiser of the board, two citizens later
in the day filed a. suit for injunction,
asking that the board be restrained
from proceeding further with the sale.
Thus the matter has been taken INTO
the courts and while no restraining
order was issued yesterday on account
of the late hour at which the suit was
filed 1t is not improbable such an oroer
will be made today.
The citizens who filed the suit are
Herbert White and F. G. Hentig, poLh
of whom. two days following the pri-
yate sale of the bonds, submitted 70
the board a request that it be vacated
Says Sale Was Illegal
The complaint is of considerable
length, and enters into details OF CIR
cumstances leading up to the sale o.
the bonds, which, 1t says, was Illegal
owing to the fact that the clerk OF the
board had not notified the state board
OF examiners and the state treasurer
OF the issuance, and that the BONDS
were ready to be sold, and that nc
notice whatever was given ABOUT tne
bonds to the state board and treasurer
as required by law.
Further, the complaint states tne
proceedings leading up to the sale were
carried on without the knowledge OF
the taxpayers and electors OF tine
county and the public at large.
That other firms and corporations
were ready, able and willing to pur-
chase the bonds at higher price tnan
was accepted by the supervisors. Is also
declared to be a fact by White ano
Hentig.
"It has been the CUSTOM" says the
comnlaint. "to offer bonds of like cnar-
acter, and, in fact, all public oonds
for sale to the general public ana t'
the highest bidder.
'The members of the board OF super
visors are charged with O. duty to ant
are given a position of trust by tn
taxpayers and Inhabitants of tn
county" says the complaint "and a
| such trustees they have violated ina
| trust and have not performed the Cd
| legations laid upon them in that the
have wholly failed and refused TO Cd
tain the highest possible price for tn
bonds"
Further, the plaintiffs claim to hav
knowledge and say the board wal
fully aware of the fact at the time TN
sale was effected, that, instead OF re
ceiving par and u of per cent, plul
accrued interest to date of delivery
there would have been offered. II tn'
bonds had been advertised in the reg
ular way, par and " of per cent, plus
accrued interest to date of delivery.
Accuse Supervisors
Following the criticism caused by
the sale. White and Hentig say tn'
supervisors turned the matter over U
the advisory board, but when theA
learned on Tuesday that repor'
would be drawn up condemning the
sale and advising that the bonds b'
sold by competitive bids, the super
visors withdrew from the submission
and declared they would proceed VIII
the contract entered into with the Lo'
Angeles Trust company and the firn
of J. H. Adams & Co.
It is also claimed by White and Hen
tig that N. w. Harris & Co, ana w. n
Stats e. Co. are ready to purchase tnf
bonds at the higher rate. The nrm