Los Angeles herald., 1908-10-15

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favors from them, and that said three
members were we'll known to act to-
gether on the board and had at that
time cause to be known publicly as the
solid three who controlled the board
by their action on matters OF pubic
concern"
Conspiracy Is Charged
Knowing all these facts. the plaintiffs
say, the solid three" James III. Adams
& Co. and w. p. Jeffries 'fraudulently
and in violation of the rights of the
county and the taxpayers thereof, en-
tered into an Illegal, corrupt ana fraud
ulent conspiracy together to procure
the sale OF the bonds to the trust COM
pany and Adams q Co., and their FUR
nishing to the w. p. Jeffries company,
without competition.
THAT In further pursuance OF said
fraudulent and corrupt conspiracy ano
unlawful scheme Patterson, Wilson and
Eldridge agreed upon the terms or the
sale of the bonds to said companies on
the understanding, as plaintiffs believe,
that said Jeffries, through his COM
pany, should have the printing or the
bonds, and by their votes forced such
agreement through
When the amended complaint, charg-
ing conspiracy and fraud, was filed fol-
lowing the private sale, the plaintins
say the purchasing companies became
alarmed at the exposures therein made
affecting their conduct in the transac-
tion and demanded that they be al
lowed to withdraw their bid. The
solid three demanded q withdrawal
, of the accusing document before agree
ing to q vacation of the sale, and this
was done, supposedly in good faith.
Bad Faith Alleged
But" say German and his asso-
ciates, ''the proceedings were not in
good faith, but were on the part of
Patterson, Wilson and Eldridge fraudu-
lently and illegally taken with the in
tention of subsequently offering the
bonds for sale as to favor the Los An
geles Trust company and James H.
Adams company and to let the print
ing to the w. p. Jeffries company. and
not with the honest purpose of comply
ing with their official duties as super
visors by letting the same to bids and
selling the bonds to the highest, and
the printing of the same to the low
est bidders"
In pursuance of this design, they say,
Patterson, Wilson and Eldridge, Sep
tember 2S, passed the resolution pro-
viding for the advertisements for bids
which would discourage prospective
purchasers.
In this connection the complaint
says: 1.-THE said solid three were fully
Informed and understood the effect of
imposing such terms in bidding for
said bonds, and that to offer them for
sale under such conditions would result
in great loss to the county. ard they
imposed such conditions for the fraudu
lent purpose of carrying out the ori-
ginal scheme of enabling said local
bond buyers to purchase said bonds
without competition for nonresident
dealers in such securities"
Local Buyers Favored
The provision that a certified check
of $4,000 should accompany the bids,
they say. would work to the advantage
of the local buyers, as the local trust
companies have bank connections Such
as would permit them to secure and
maintain such check without expense.
and nop-resident persons or corpora
tions desiring to bid for the bonds
would be compelled to pay large sums
to obtain and keep such a check, thus
giving the local dealers an unique and
Illegal advantage in the bidding.
"Such conditions" say the plaintiffs.
"were imposed for the fraudulent pur-
pose of giving such advantage to the
Los Angeles trust company ana James
H. Adams & Co., and to enable them
to purchase the bonds for sum
greater than they had contracted to
buy them for at private sale.''
Even after the resembling of the pri-
vate sale, the plaintiffs contended, the
trust company Adams & Co, the
''solid three" and Jeffries "confederated
to secure the contract for printing for
the Jeffries company" even If the bid
of that company was not the lowest,
and in order that the purchasers might
be relieved from liability.
In conslusion the complaint says:
"Unless restrained by this court the
said supervisors, Patterson, Wilson and
Eldridge, will cause said bonds to be
sold under the terms and conditions
provided for in the proceedings of
September 2S, at great loss to the
county, and the contract with the
Jeffries Company will be carried out.
and the sum of s25o0 paid to that COM
pany, and the county defrauded out of
not less than $1O25, the difference be-
tween the bid of said company and the
bid of the Security Bank Note COM
pany."
The plaintiffs ask that the board of
supervisors be enjoined from selling
the bonds under the conditions and
terms imposed and from carrying out
the contract with the Jeffries company.
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