Los Angeles herald., 1908-11-03
HARTLEY SHAW AND ELDRIDGE
TESTIFY AS TO BOND DEALS
Chief Deputy District Attorney Tells of Two Other
Secret Meetings Prior to the Momentous One on
Labor Day. When Action Was Taken

suits gave their testimony yesterday
before Judge Bordwell They were
Hartley Shaw. chief deputy district at
torney, and S. T. Bldridge. one Of the
''solid three whose votes carried the
sale and gave the printing Of the bonds
to the W. p. Jeffries company.
Mr.. Shaw apparently took upon him
self the responsibility for bringing
about the secret meeting at which the
proposition was finally decided, but all
through his testimony could be seen the
guiding hand of ]. B. Martin, represent
ing the two bond purchasers-the Los
Angeles Trust company and James H.
Adams & Co. j. C. Drake, president
OF the trust company, told of but one
secret meeting while on the witness
stand. Shaw and Eldridge told Of two
others held prior to the momentous one,
September z, Labor day.
Little by little the facts surrounding
the private sale, and other things con-
nected with it, are coming to the sur
face under the piercing questions or
former Judge John d. Works, repre-
senting Eugene German and others,
and Willard e. Lyons, attorney for
William Lindsay.
with the utmost frankness. Eldridge
assumed a frankness which he evident
ly labored hard to maintain, but which
threatened, time and again, to desert
him. Twisting about in the witness
chair ne endeavored to tell in his own
way what occurred at the secret meet
ings. His memory was at fault when
questioned about certain things. Re-
garding other matters he rambled off
into a discussion of the best kind of
plumbing, or a diatyibe against the
newspapers, and 1t was necessary to
recall him sharply to the question.
Although Eldridge maintains that he
still believes the sale WAS good one
from business standpoint, he showed
an evident desire yesterday to place as
much blame as possible upon the shoul-
ders of Supervisors Alexander and
MHnning, who throughout fought
against secrecy in the matter.
Admits Three Meetings
The first accurate knowledge that
more than one secret meeting was held
prior to September Z, the day when the
proposition was practically decided
upon, came to light when Deputy
Shaw said two other secret meetings
were held, one on August "a, the other
a week later. His excuse for privacy.
he said, was that there were constant
Interruptions in the general board room
and 1t was necessary to discuss the
matter without interference.
Even before the bond election was
held Mr.. Shaw said j. r. Martin called
on him and broached the subject of the
sale Later, he declared, he talked to
the members of the board at the sug-
gestion of Martin and discovered OPP
position to the private sale. He re-
ported to Martin that he did not be-
lieve a sale of this kind could be made.
The first secret meeting was held
August "a. Those present were Depu-
ty Shaw and Supervisors Manning, FL
bridge and Patterson. The question OF
q private sale was raised then for the
first time, but on the suggestion of I'll
bridge the meeting was continued one
week and the clerk was asked to noti-
fy all members of the board to be pres
ent. The meeting was held in response
to request by Deputy Shaw.
All Five Present
A week later all five members were
in attendance in the little side room"
Besides the supervisors, Shaw and
Martin were also in attendance, to-
gether with a number of representa-
tives of bond printing houses, includ-
ing w. p. Jeffries, Seward III. Force,
and others.
The matter of a private sale was
taken up, but was opposed by Man
ming and Alexander. Martin, the only
representative of bond purchasing
house, however, presented his PROPOSE
ton to buy the bonds, Offering one
fourth of | per cent for the first mil
lion, and one-half for the remainder.
He asked the members to call on other
bond houses and inquire If this was
not a good price, said Shaw, and they
promised to do so.
How was the Labor day meeting
arranged?" asked Mr.. Works.
invited
tin," said Mr.. Shaw. 81 was half an
hour late 1 remember there were
present Patterson, Wilson and Ell
bridge, Drake, Adams and Martin. We
were a couple of hours discussing the
sale, and the first thing that attracted
nv attention was that the offer was
not as good as the one made a week
before This was explained by Mr..
Adams, who said Martin had acted
without authority in Offering one-half
of / per cent for part of the bonds.
Eldridge said he did not know how 1t
could be explained to Manning and
Alexander, who were led to believe
that a better bid would be made"
The bugaboo of the city's experience
with the Owens river bonds was also
held up before the "solid three" at the
September meeting, as a reason why
they should close the deal at the offer
made on Labor day.
SHaW FTCpdTCu Dlu
Shaw also admitted that he prepared
the bid for Adams & Co. and the Los
Angeles Trust company at the offices
OF the former company and imme-
diately following the Labor day secret
meeting.
"Was anything said about not dis
closing what was done or the bid that
was offered?" asked Judge Works.
MARTIN, on August 81, told the mem
=. rn 10
others, to show that it was a good
one"
AS the bid to be compared with any
that might be offered by other houses
was larger than that agreed upon a
week later any statement favorable to
its acceptance would, of course, have
no weight.
Then Deputy Shaw told Of the meet
ing September s. when private sale
was ratif1ed by the 'solid three" He
spoke Of the opposition of Alexander
and Manning, and their efforts to have
the matter continued TO a later day.
Martin at that time, he said, told the
supervisors they must accept the bid
then or it would be withdrawn.
Whether Martin was fearful that de-
lay would mean the presentation or
higher bid was not explained, and
whether unable or unwilling to reject
his offer the "solid three" adopted
resolution accepting it.
w. P. Jeffries, said Shaw, also called
on him prior to the election in regard
to the printing of the bonds, but he