Los Angeles herald., 1908-09-26
BIDS WILL BE CALLED FOR ON
ENTIRE ISSUE
TRUST COMPANIES WITHDRAWAL
ACCEPTED
Supervisors Again Split on obeying
Advisory Board, "soIid Three"
Rejecting Proposal to Ad-
vertise for Thirty Days


o'clock yesterday, and nothing now re-
mains but to advertise for bids in the
regular way.
AS expected, the stumbling block In
the path of amity proved to be the
amended complaint filed on Wednesday
charging conspiracy and fraud in the
bond sale, and not until John d.
Works, representing the good roads
advisory board, agreed to go before
Judge Bordwell and request the strik-
ing of this complaint from the files and
secured an order to this effect would
the representatives of the banking in
terests consent to go before the super
visorial body and ask leave to with
draw their bid.
The way to settlement Of the
troublesome question was paved at 10
o'clock in the morning, when Judge
Hutton granted a motion of Attorney
Works to modify the restraining order
preventing the carrying out of the sale
by making an order allowing the pur-
chasers to ask the supervisors to per-
NIT withdrawal of the bid.
Supervisors Present
Informed beforehand Of the action
likely to be taken, the five members of
the board of supervisors were In court
in readiness to gather in special session
ana acceue TO tne rSqueSt VI tHe pdhh-
ing interests.
But the amended complaint, contain
ing charges of criminal conduct, could
not be overlooked, and although the
supervisors waited until noon no word
came from the purchasers indicating
the next step to be taken. 1t was not
until 4.30 o'clock that Attorney Henry
O'Melveny, representing the bond pur-
chasers, appeared at the board room
and stated that, unless the amended
complaint was stricken from the files
the bankers would refuse to take the
desired action.
In response to a telephone message
Attorney Works hurried to the court
house, and, accompanied by Mr..
O'Melveny and District Attorney
Fredericks, appeared before Judge
Bordwell, who ordered the offending
paper taken from the records.
Five minutes later the supervisors
were in session in response to a special
call signed by each member OF the
body.
The call stated the purpose of the
meeting to be the consideration of a
communication from the Los Angeles
Trust company and James II. Adams
& Co. The letter was read by Secre-
tary McPherron as follows:
Honorable Board of Supervisors, Los
| Angeles: MISUNDERSTANDING to the
proposal of the undersigned to pur-
chase the Los Angeles county high,
way improvement bonds in the amount
| of $3,500,000, said proposal being datec
September 8, 1908, and which proposal
was accepted by your honorable body,
we beg to inform you that eminent
counsel have advised us that we are
legally entitled to delivery or these
bonds upon payment therefor IN ac-
cordance with said bid.
Nevertheless, in Difference to public
opinion, which has declared itself as
opposed to the private sale of public
securities, not to delay in any way the
contemplated improvements, and to re-
lieye you from all embarrassment, we
have endeavored to place ourselves in a
position where these results could be
accomplished, If any equitable and
legal way could be found to do so.
"Having obtained release from our
eastern connections of the performance
of the contract we are today in posi-
tion to take up the matter with your
honorable body with view of with
drawing our bid, conditioned upon the
return of the deposit made in connec-
tion Herewith.
"We, therefore, are willing to release
you from the acceptance of our bid
upon the foregoing conditions, with
building of the good roads in Los An
geles county. Yours respectfully,
LOS ANGELES TRUST CO.,
"By ]. c. DRAKE, President.
JAMES H. ADAMS & CO.,
"By JAMES H. ADAMS. President"
Permission. to Withdraw
A resolution, prepared by Attorney
O'Melveny, was then read and adopted.
The rpSOlIltiOn ID fOllOWSs
Whereas, James II. Adams & Co.
and the Los Angeles Trust company
have requested that they be permitted
to withdraw the proposal to purchase
county highway bonds, which proposal
was filed with this board September 8,
1908, and was on said date by said
board accepted, with the understanding
that a formal contract embracing the
terms of the proposal and acceptance
thereof should be drawn and executed
by all of the parties, and,
Whereas, 1t is deemed expedient
that the making of said contract should
not be further proceeded with, but that
James II. Adams g. Co. and the Los
Angeles Trust company should be al
lowed to withdraw their bids, and that
the same and the acceptance thereof
should be Cancelled,
"Now, therefore, 1t is hereby ordered
that James H. Adams & Co. and the
Los Angeles Trust company be and
they are hereby permitted to withdraw
their bids, and the said bids and the
order of acceptance thereof by this
board adopted September s, 1908, be and
the same are hereby Cancelled, rescinded
and annulled, and no further proceed
ings shall be had Hereunder or pur-
suant, and James H. Adams & Co. and
the Los Angeles Trust company are
hereby permitted to withdraw, and it is
hereby ordered that there shall be de-
livered to them the certified check for
$50 900 submitted with their proposal
and referred to therein, and,
"It is hereby further ordered that
James H. Adams and company and the
Los Angeles Trust company and each
of them be and they are hereby forever
released and discharged from any and
all obligations and liability of every
kind and nature whatsoever on account
of the said proposal or any acceptance
thereof or in any manner arising out
of the same"
EIdrldge Moves Adoption
Supervisor Eldridge, one of the solid
three" moved the adoption of the res
olution, and this was seconded by
George Alexander, who throughout has
strenuously or-osed the private sale.
Each member of the board voted in
favor of the resolution on roll call.
Supervisor Eldridge's motion to adj
journ was interrupted by Alexander,
who, with Captain Manning. has OPP
,,oead aocrerv In connection with the