Los Angeles herald., 1908-09-29
SOLD THREE
IN RAGE, LIMIT
BOND SELLING
SUPERVISORS PUT RESTRlC-
TON ON BIDDERS
SHOW RESENTMENT; IN HURRY
FOR MONEY
Alexander Valnly Pleads with Wilson,
Eldridge and Patterson to De-
lay, If Only for
Week

With every indication of resentment
at the criticism occasioned by the pri-
vate sale of the good roads bonds the
"solid three" of the board of super
visors yesterday rushed through res
olution providing for the advertising
OF bids for the bonds, with restrictions
that will in all probability bring forth
offers not at all commensurate with
their value or meet the views of tax
payers generally.
The session lasted three hours, but
1t took only small part of this time
to consider and act upon the resolu-
tion offered by Supervisor Eldridge.
This resolution provides for the ad-
vertising for bids, each bid to be ac-
companied by a certified check for
$50000 and to be opened November 2.
The first delivery of $350,000 must, ac-
cording to the resolution, be made De-
cember 2, and other deliveries as fol-
lows: $780, 900 March /, 1909; $1,000
November 1. 1909; 100000 July 1, 1910;
100000 January 1, 1911, and 100000
July 1, 1911.
Asks for Delay
Supervisor Alexander asked for de-
lay. "a weeks time should be given
to consider this proposition" he said.
"That is the rule In all important
cases."
1--WE have had delay enough" re-
sponded Wilson.
THAT is not So" retorted Alexander.
"This Is the first time the matter has
come before this board. The PROPOSE
tion may be a good one, but I believe
there is better one, and want time
in which to discover it. / believe we
should advertise for bids for the first
million only. and advertise later for
bids when the money Is needed. A
lower price will be offered for long
term than for short-term bonds, espe-
cially where the former are surround
ed with restrictions"
This view was coincided in by w. J.
Schmahl of NJ. w. Harris & Co., who
was asked to explain the position of
his company. While his firm, he said,
was ready to take the entire issue, a
sale as indicated by Alexander would
bring better price for the county.
During the past nine years." said
the bond man. "there has not been a
time. except three months0in the last
panic, when Los Angeles bonds have
not been worth par or better. What
chance are you taking If you offer
bonds as you need them?"
you know the papers objected to
what we did-remember the papers,
not the public" said Supervisor Ed
ridge eff we. don't sell the entire issue
now it's a gamble whether we get a
good price for the balance"
Eyes, and judging from the demand
for Los Angeles bonds and their gilt
edge character the gamble is all II
our favor" replied Alexander.
Manning Supports Him
Alexander was supported by Captain
Manning, but not even their opposi-
tion to call for bids both for the entire
issue and also for the sale of the first
million would be discussed, and the
motion to delay action a week was
voted down, the "solid three" against
the other two members of the board.
z. Jardine representing w. R. Stats
& Co., also stated his belief that If
the bonds were issued in the same
manner as provided for in the terms
of the private sale one-half to one
per cent would be paid and that a bet
ter price would be secured if a million
dollars worth were sold at this time
and another million later, and so on,
as needed.
Alexander again asked for time to
consider the matter, but was interrupt
ed by Chairman Patterson.
"I'll tell you this" said the chair
man with some heat, eff you want to
do business here you will have to do 1t
quickly. l won't be here next week
nor the week following unless I am
brought here by the sheriff. This thing
will have to be settled now. l believe
IT is a good proposition to sell all the
bonds now. Having a large amount
on hand would not be so expensive as
running out of money when we need
ed it,
"You say you won't be here next
week" remarked Alexander. "Do as
] did You called me from my vaca-
tion to attend these meetings; now
do the same yourself. All l say is,
give me time-a week--that I may get
the idea of the taxpayers and see what
they want"
Another Saving Ignored
The resolution, however was adopt
ed Notwithstanding AleXander's re-
quest, supported by Manning. The
resolution also provides, as in the case
of the private sale of September s, that
KountZ Brothers of New York carry
out the original plan of handling the
bonds. Alexander and Manning agar
protested that time should be giver
for consideration of this part Of the
resolution, contending that bids should
be received for this work, but withou
avail.
Schmahl again made a statemen
that if the company he represented wal
allowed TO handle the bonds the worl
would be done without cost to tn
county other than the price of ex
change. This, it is said, If accepted
would mean a saving to the county o
about $S000
The restrictions contained in the res
olution and objected to by AleXande
and Manning are those providing spe
cific dates on which the bonds shall
be delivered The lack of elasticity II
this connection compared with thu
terms contained In the rescinded bono
sale is expected to lessen the price tina
will be offered by intending purchasers
The printing of the bonds was also
discussed, but this matter also will bt
advertised and the work let to the
lowest responsible bidder.