The San Francisco call., 1908-09-11
DEADLOCK OVER
AWARD OF BONDS
Board Divided Regarding Ac-
ceptabiIity of ROlIins-Harris
Bid for City Securities
Firm Makes Highest Offer, but
Violates One of Conditions
Laid Down in Call

cussion among the representatives OF
the chief bidders on the municipal bond
issue Of $3.2S0,0OO, and after an hours
secret conference, the public utilities
committee OF the board of supervisors
adjourned yesterday evening without
arriving at any settlement of the bond
issue award. The deadlock concerns
the acceptabflity OF the Rollins Harris
offer of s3,5l4,52o. This is higher than
any possible combination Of other BIDS
but violates one of the conditions laid
down by the city in its call
Mayor Taylor sat with the committee
at the hearing and in the conference.
It is understood that he favored the
city's standing strictly by the condi-
tions imposed on the bidders. Super
visor McLeran is believed 10 have also
maintained that the consideration OF
the Rollins Harris offer worked an in
Justice upon the bidders conforming to
the conditions. Chairman Giannini and
Supervisor Murphy maintained that
the boards duty was a simple one the
RWard to the highest responsible bid
der, despite Irregularities. Chairman
Jennings of the finance committee held
substantially the same view. Ban
croft and Payot deferred to the COM
mitteemen in charge Of the matter.
MAYORS VETO EXPECTED
The committee will meet today at
1890 o'clock in an endeavor to decide
its recommendation, which, in all prob
ability, will be final with the board at
its session next Monday. Should the
board award the bonds to the Rollins
Harris combination. Mayor Taylor's
possible veto would require IA votes
for & reversal
The merits of the questions were we'll
brought out during the three hours
hearing. A W. Bullard and W. ].
Schmal, for Rollins-Harris, maintained
that the board had absolute discretion;
that their offer was by $4,000 the best;
that If irregular, it was perfectly clear
and backed by their deposit and credit;
and that to reject it would be infict-
ing an injury upon themselves and the
public. James K. Lynch Of the First
national bank, in maintaining the same
view, interjected a discordant note
when he said: Disappointed bond bid
ders frequently show their disgruntled
feelings in attempts to block the natu-
raj award in the hope that perhaps at
renewed bidding they may profit by
the foresight of others and may be TAX
en- In for piece.
RESENTS LYNCH'S CHARGE
Sidney Ehrman Of the Wells Fargo
national bank resented what he char
acterized as Lynch's charge of bad
faith. With G. X. Weeks for the New
York houses-the National City bank,
Speyer and Halsey-Ehrman contended
that as a blanket bid was expressly
forbidden in the boards call for bids
and as blanket bid, if successful.
awarded a monopoly, the city had
no moral right to consider such an
offer. Attorney W. S. Goodfellow main
tanning this view held that the condi-
tions imposed by the city in the bid
ding were in the nature OF a tentative
@1,,+ -. ,F
material condition would be a breach Of
faith.
Brock, of the New York interests,
called attention to the fact that the
present award concerned only $3.2S0 900
of the total bond issue of 1920, 900.
and that the money advantage involved
was only a few thousand. He held
that the city should strictly abide by
its own conditions. To this Bullard
rejoined that turning down the highest
bidder would disturb the bond buying
centers more than any disregard of
technicalities
MAKES NO OBJECTION
For William H Crocker. who sub
mitted the second highest offer for all
the bonds. Attorney W. /. Brobeck said
his principal, while desirous of secur-
ing the bonds. would offer no objec-
tion to their award to Rollins Harris.
Croker, Brobeck said, was mainly in
terested in seeing the city's projects
go ahead.
Attorney General Webb made a
strong plea for the award of the $780,
600 hospital bonds to the state, the
board Of examiners bid of s29S, 500 be-
ing far in excess Of any other upon this
small issue.
The world wide interest taken in San
Francisco's bond sale was evidenced in
bo hos
the east but Europe. Several bids
listed as from a ',French-American
bank" were by the Banque Franco
Americana Of Paris. they having been
submitted by Henry Brunner, the local
representative, in accordance with the
following cabled instructions:
Submit following bid for our account San
Francisco per cent city bonds: 500, 600
IRE protection bonds. equally divided over all
maturtties for SOP 600: $3.50 600 boenitaI hopSs
The comnlefe serieS s5so 7oo. soc edo siooi
bonds, maturing 1887 and 1898. for $1O1, ,7G0,
With accrued interest added in each case.
The question of granting the Ocean
Shore railway company per-
NIT 10 build a viaduct along TWelft h
street, between Folsom and Harrison.
was considered by the supervisors
J. Downey Harvey of the road made
the application. No decision was
reached in the matter. The commit
teemen will inspect the site of the
: and at next Thursdays meeting grant
a hearing TO any citizens who may OBJ
3ect TO the proposal
You're not running the city, Mr.
Casey" said Frank Marston, when
the president Of the works board
stated that the city did not now have
the money to install a "noiseless''
pavement for Kearny street and that
in any case the amount of building
operation in prospect for the next
two years made a temporary basalt
pavement imperative. Marston as
serted the petition of property owners
representing $35, 100000 along the
tlloroughfare in question had been ig-
noreo- Casey took no notice of the
tone of Marston's speech, and the COM
mittee recommended that the blocks
of Kearny between Clay and .Califor-
MIA be laid with the basalt paving.
General Manager Black of the Unit
ed Railways appeared after the ad-
.journment in regard to the roads pc
tition for curve connections at Second
and Twelfth streets with the Market
street lines. The connections are de-
sired to make possible a diversion OF
traffic over Mission street upon occa-
sion. Black claimed the road had the
right TO install the curves without the
supervisors permission and simply
with the works boards assent. AS
the roads tracks on Second do not
cross Market 2 franchise grant will
however, be REQUISITE