Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-12-01
FIRST ISSUE OF
ROAD BONDS IS
FINALLY SOLD
SAN FRANCISCO FIRMS BID
ACCEPTED BY BOARD
BID CARRIES WITH 1T PREMIUM
OF. $50, 1880
Farmers and Merchants Bank and
Southern Trust Company Enter
Protest Against Action Taken
by Supervisors


A FTER a heated contest, in which
II every member of the board of SUI
"A perVisors and several agents of
bond purchasing houses was engaged,
the county body yesterday took what is
believed to be the final step in selling
the first issue of the $3,500,000 good
roads bonds. The successful bidder was
the firm of E. H. Rollins & Co of San
Francisco, whose bid for $1,050,0 000 with
a premium of $50, 37.50 was accepted.
Following the acceptance of the bid
a motion was passed allowing all bid
ders except the successful firm to take
down their checks for $4,000 and
smaller amounts.
In addition to purchasing the first in
stallment of the bonds Rollins & Sons,
through their agent, A. w. Bullard,
promised to furnish the engraved bonds
and pay for the certificatiOn.
strong effort was made by repre-
sentatives OF the Farmers and Mer-
chants bank and the Southern Trust
company to secure favorable action on
their bid for the entire issue of the
bonds, and before final action was
taken John P. Burke, vice president of
the trust company, filed q written pro-
test with the board.
Neither Mr.. Burke nor T. e. Newlin,
representing the Farmers and Mer-
chants bank, would state whether they
would take legal steps to prevent the
carrying out of the sale to Rollins &
Sons. Such action, according to Chief
Deputy District Attorney Hartley
Shaw, legal adviser for the board
would have no effect, as, he claimed
the board of supervisors acted entirely
within it's right when 1t adopted the
resolution two weeks ago amending
the advertisement of September 2S, and
called for bids in any amount.
Printing Still Undecided
Another meeting of the oard was
held in the afternoon at which Mr.
Shaw was instructed to draw up con-
tract in accordance with the board S
action earlier in the day. The ques-
tion of printing the bonds is still un-
decided. While Rollins 81 Sons say they
are willing to furnish the bonds for the
amount purchased by them, it would be
natural to suppose that when a secon6
sale is made bonds of different kint
viii he furnished. and this the board
OF Supervisors does not want. Mr.
Bullard suggested that the board au'
thorize his firm TO furnish all the
bonds at this time, the county to pay
for those not used by his firm, while
the agent for the american Bank Note
company wanted the board to advertise
for the entire issue. The board was
split on the proposition ana decision
was postponed to Thursday.
When the board of supervisors met al
10 o'clock the chamber was crowded
with bond buyers and interested citi.
zens.
t. e. NeWlin, vice president of the
Farmers and Merchants bank, was the
first to respond to the suggestion o.
Chairman Patterson that bond buyers
explain the merits of their respective
bids. Mr. NeWlin said he believed the
bid submitted by his bank and by the
Southern Trust company should be ac-
cepted, as it was the only bid in strict
conformity with the terms of the ad-
Vertisement of September %.
Mr.. Burke of the Southern Trust
company spoke on the same line. He
also claimed that until a week ago he
had not heard of the boards action III
amending the advertisement.
Reserves Right of Action
Mr.. Burke said he would not state
what action the trust company would
take if a smaller bid were favorably
acted upon, reserving statement OF
his course until after the sale was
made.
Mr.. Bullard, agent for Rollins &
Sons, said the only question to be de-
cided was whether the board would ac-
cept the bid for the entire issue or the
highest bid for a part of the bonds
If the latter action were taken, he
said, it meant success to his bid.
Chairman c. D., Daggett of the high
way commission favored the disposal
OF the entire issue, while A. e. Lode,
engineer of the commission, believed
the county could get along with $1,000,
coo the first year.
Supervisor Eldridge moved to accept
the Rollins bid. A substitute was
offered by Supervisor Alexander, who
wanted a e-advertisement.
IF we re-advertise for S1.050,000,
he said. 'it is natural to suppose we
will get a larger number of bids and
at a higher premium than the one
offered by Rollins & CO.
Captain Manning moved to accept
the bid of the Farmers and Merchants
bank. His motion was voted down.
three to two, Alexander WlthdfaWlnS
his motion temporarily.
When he offered it again it received
the same fate as M9nnings PROPOSE
ton, the same vote being cast.
Eldridge's motion to accept the Rol-
lins bid was then passed, Eldridge,
Patterson ana WILSON tNOtiliS III IiO
affirmative, and Alexander and Wilson
against.
Burke Reads Protest
Before this action was taken, how
ever, Mr.. Burke read a protest, which
was filed with the board. He recited
the fact that the Southern Trust com
pany and the Farmers and Merchants
bank had submitted the only bid in
accordance with the advertisement,
and stated that, in his belief, no other
method of selling the bonds had been
authorized by the, board The trust
company and the bank, he said, were
able and willing to accept the whole
issue and pay cash premium therefor
of $139.000
A number of representatives of other
bond houses urged a advertisement
for bids.
It is not believed that the printing
of the bonds can be done inside OF two
months, and pending that time 1t is
not improbable the treasury of the
county may be called upon to advance