Los Angeles herald., 1908-07-11

past two weeks was about to bear fruit
| in manner most accept BILE to his
| principals.
1t was apparent on the surface and
was limited at quietly by Mr.. Wallace
during the morning discussion the
rivals had got together over night and
were all in on the deal to take up the
Owens river securities.
Councilman Dromgold was the first
one to take decisive action. He moved
the contract of the New York syndicate
be ratified and was promptly seconded
by Councilman Lyon. The measure
was before the house, the first time 1t
had been properly presented since it
was made early Thursday afternoon.
Dromgold made few remarks in IA
vor of the measure, using editorials
printed in the three morning papers as
the basis for his remarks. He has been
the leader of the faction that wanted
to accept the proposal of the Leach &
Kountze syndicate, and he felt he
had finally accomplished the task he
had set himself. With the help of
President Pease he had stemmed a
strong tide of opposition and won
hands down.
There was a pardonable note of tri-
umph in his voice when he made his
closing argument.
Changes His Mind
Councilman Wallace, who has led
the opposition to the acceptance of the
contract, followed his opponent on the
floor and almost his first words showed
he had changed his mind quite recent
ly. Whether or not j. H. Adams of
]. H. Adams & Co., who took Mr.. Wal
lace aside for long and earnest con-
ference before the meeting of the coun-
ell, had had anything to do with the
changed attitude of Mr.. Wallace that
councilman did not state. 1t is believed
]. H. Adams e. Co. and the Los Angeles
Trust company are getting their share
of the bonds taken up by the New York
buyers, and the fact that these COM
panies which ne has been so ardently
supporting during the deadlocked ses-
sions of the council were getting a
part may have had something to do
with Mr.. Wallace seeing the New York
proposal in a different light.
Mr.. Wallace declared he had done
what he thought was for the best inter-
ests of the city in opposing the first
measure presented by the New York
bankers and the much better proposal
on which they were now acting was
justification for his opposition. He
took considerable credit to himself for
the advance in premium offered in the
second proposal and declared the de-
lay occasioned by his opposition had
brought about this advance. Mr.. Wal
lace failed to remember that he had
not advocated delay, but had advocated
the acceptance of proposal made by
J. H. Adams & Co. and the Los Angeles
Trust company.
Futile to Resist
In his remarks Mr.. Wallace declared
he saw it was futile to resist any
longer. The biggest bond buying
houses in New York, he said, were in
the combine that is taking I'D the
Owens river securities. At least four
he knew were in the syndicate besides
those whose names appeared on the
contract, making six of the biggest
bond buying firms in the country rem
resented. Not only are the eastern
bond buyers interested in these sectIr-
tiles, but the local firms who do BUSH
ness largely with eastern capital. were
implicated, he intimated.
AS the city needed money badly and
it was dangerous to delay longer. he
said he would vote for the measure.
although it was against his better
Judgment.
When the roll was called all voted
aye except Yopkin and Wrenn. When
Mr.. Yonkin found there were seven
votes for the measure he took the floor
and said he had voted against ratify-
ing the contract because he was on
posed to the rate of interest, and be-
lieved the bonds could be sold more
cheaply at some later time, but he
would withdraw his opposition, and
moved to make the vote unanimous.