Los Angeles herald., 1908-09-17

| TO winch the SAFE WAS Hlaue dIS diSo
said to have contracted to resell them
at profit of $500,000 and it is claimed
the county will lose to that extent.
| W. HA Moylin and Hutton & Will
Jams are the attorneys for the plaintiffs
in the suit.
When, the advisory board met yester-
day morning there were but two alb
sentees, s. A. Hubbard, who is sick,
and j. o. Koephi, who asked to be ex-
cused from attendance at the delibera-
tions on account of his connection with
the Los Angeles Trust company and
desire not to influence the action OF the
board because of that fact.
| The subcommittee of three, consist
| ing of Mayor Thomas Farley of Pasa-
dena, p j. Beveridge of Hollywood
and George H. Stewart, president of
the chamber of commerce, offered the
report of its labors with the solid
three" of the board of supervisors, la
| bors which were without success.
While the committee expressed the be-
| lief that no fraud had been committed
by Supervisors Patterson, Eldridge
and Wilson, it however condemned the
action of those officials in disposing OF
the bonds in an irregular manner.
Report Submitted
The report, which is dated Septem-
| ber is. reads as follows:
| To the Members of the Good Roads Advis-
ory Committee-Gentlemen
Prior to the election of July 80. 1908. at
| which the board of supervisors of Los An
| geles county were authorized to issue bonds
In the amount of $3,500,000 for the purpose
! of county highway improvement, the said
board of supervisors appointed committee
| to act in an advisory capacity to said board
! upon ali matters OF contracts relating to the
| expenditure of the moneys to be used in
| highway improvement. and by resolution
A1--A - A.T~ :. k4<xz
upon such matters except after approval by
| said advisory committee. that committee
| consisting of Thomas Farley Pasadena: Sid
ney A. Butler, Los Angeles; +. W. Blanch-
| ard. Los Angeles; A. P. Fleming, Los An
| geles; p. 7. Beveridge, Hollywood; Harry
Barndollar. Long Beach: George D. Whit
| comb Glendora; T. ]. Walker. Newhall; G.
D. Manning, Lamanda Park, and e, G.
1 Bichowsky, Pomona. being the executive
committee of the Good Roads association,
and George H. Stewart. president Of the
chamber Of commerce: j. M. Schneider,
president OF the Merchants and Manufac-
turers association; J. o. Koepai, president
of the Municipal league; William Mulhol-
land, chief engineer for the Los Angeles city
aqueduct, and A. A. Hubbard
On September s, 1908, James H Adams
6 Co. and Los Angeles Trust company made
a proposal to the board Of supervisors
to purchase the issue of bonds for par and
q premium of one-fourth of per cent plul
accrued interest to date OF delivery. thu
. bonds to be paid for as delivered. and de
r 100000 on or before November 16, 1905
$f,o50,o00 before January 2, 1902
100000 on or before January 2. 1909.
$1,060. 900 on or before Januarys2 2, 1910.
The privilege. however, was reserved tt
call for delivery of any of such installment:
prior to such time specified. As part OF the
purchase price it was also proposed to
print. engrave and furnish the blank bonds
without expense TO the county.
On September 8. 1908 the board of super
visors, by motion, accepted the bid of James
O. NJ ARaf7 aerA eft
company. No written contract was, how
ever, executed and delivered to or between
the county and the board of supervisors.
/ Subsequent to its said action the board
referred the matter of the sale OF the bonds
to the advisory committee above named
for its approval: that committee appointed
the undersigned, your subcommittee, to IN
vestigate and report, and your committee
begs to advise IS follows:
In accepting the proposal of James II
Adams and company and Los Angeles Trust
company the board of supervisors. in the
opinion of your committee, did SO upon the
supposition in good faith that the proposal
received was good as could be had. and
we believe there was no fraud or unlawful
act in connection with the proposal and its
acceptance, it being entirely within the
law, are advised, for the supervisors
to sell. either at public or private sale
| However, we are convinced that 1t Is mad
visable for the county to ever make bond
sale of such magnitude without advertising
publicly for bidders. It is not necessarily
when competitive bids are publicly asked
Nevertheless, the public extension of oppor-
, tunity to all bidders certainly ought to as
sure as satisfactory bid as can be op'
tained and leaves no opportunity for PUBLIC
distrust for the integrity of the SALE what-
ever IL may be. The confidence of the peo'
pie at large is, we believe, sufficient con-
sideration in itself to warrant rescission
OF the former action of the board of super
visors, and that the countys good roads
bonds be sold to the highest bidder aftel
public advertising. and this we believe &c
be true, aside from the question whether oi
not the bid received Is as good one al
could ba had.
committee that the present bid is unsatis-
factory and should not be approved by youi
body The times provided for delivery oi
the bonds would bring money into tn'
county treasury at earlier dates than 1t vii
in all probability be needed, and thereby
the county would be compelled to pay large
| amounts in interest upon money wnicf
would be lying idle in its treasury II Is tt
be noticed also that the porposal allows tn'
bidders ito call for delivery Of any install
ment of the bonds prior to the times speci
/ fed" which is, as 1t appears to your sub
committee, inadvisable We therefore rec
ommend that your advisory committee re-
mort to the board OF supervisors and peti
4 tion It against the proposed sale to Jaine
/ iH Adams and company and Los Angeles
Trust company upon the terms stated u
their present bid. and request James II
Adams and company and Los Angeles Irus
l Company to withdraw their bid: that 1t b.
carefully determined by the board of super
visors and highway commission, when ant
4 In what amounts the moneys will be needed
and that the board advertise public sale o
the bonds. to be delivered at the time
when as determined, the money will b.
required for good roads construction.
Respectfully submitted,
THOMAS BARLEY.
|