Los Angeles herald., 1908-09-11
HOLD ROAD
BONDS UP
QUESTION GOES BEFORE THE
ADVISORY BOARD
TREND OF FEELING SHOWN BY
CONFERENCE RESOLUTION
Indications Point to Severe Criticism
of Action of Board Majority by
Members of Business Mems
Committee

Feeling aroused over the action of
Supervisors Patterson, Eldridge and
Wilson on Tuesday in awarding the 49,
100000 good roads bonds to James H.
Adams & Co. and the Los Angeles
Trust company at a premium of one
quarter of per cent has had the effect
of placing the matter before the ad-
visory committee appointed by the
board on June 30 and is in way likely
to result in vacating the boards action
and in advertising for bids in the regu-
lar manner
A resolution to this effect was passed
by the board yesterday afternoon, fol-
lowing a conference lasting through
out the forenoon between the board
members and a number of the men who
had been selected to act in an advisory
capacity.
The passing of the resolution within
two hours after the conference indi-
Gates the nature of the discussion and,
while the proceedings were secret, it is
believed the action of the majority of
the board was made the subject of Sc
we're criticism. The resolution was Of
fered by Supervisor Eldridge immedi-
ately after the board convened at 2
o'clock, and is as follows:
Pass Resolutions
whereas, the board of supervisors,
having appointed an advisory commit
tee consisting of the following gentle-
men: Thomas Farley, S. A. Butler, F.
w. Blanchard, p. ]. Beyeridge, Harry
Barndollar. A. P. Fleming, c. D. Man
ming, 7. J. Walker George d. Walker,
the president of the Los Angeles cham
ber of commerce; president of the Los
Angeles Merchants and Manufacturers
association, presi lent of the Municipal
league, chairman of the Los Angeles
board of public works and Mr. William
Mulholland, to act in an advisory
capacity to both the supervisors and
the highway commission in the matter
OF letting contracts for road improve
r.ents and making appointments for
positions connected with said road i'm
provements, or in filling any vacancy
that may occur upon the Los Angeles
highway commission, the honorable
board of supervisors agreeing not to
make such appointments or let such
contracts unless the same shall first be
approved by the said advisory COM
mittee, and,
Whereas, bonds for $3,500,000 were
,ted at an election held July 80, 1908,
in the county of Los Angeles for road
improvements, and,
Whereas we believe it is only fair
that the selling of the said bonds be
also submitted to the advisory commit
tee, now, therefore be it
Resolved, That this board of super
visors refer the negotiations that have
already been entered into with Adams
& Co. and the Los Angeles Trust COM
pany to the above committee for its ap-
prevail
Higher Premium Offered
1t also developed yesterday that at
the secret meeting held more than a
reolr Df foI, h. ion lot
ting the bonds was discussed by the
full committee, higher premium than
that accepted by the board on Tues
day was offered by the representative
of James H. Adams & Co., one of the
firms to which the bonds were award
ed AT that time, it was stated by
Alexander yesterday, Adams
& Co. offered one-quarter of l per cent
on the rirst million of bonds and one
half of 1 per cent on the second issue.
The time of delivery was also different
and more advantageous to the county.
Even this offer was opposed by two
members of the board, who believed a
better deal could be carried through.
The business acumen upon which
Supervisors Eldridge, Patterson and
Wilson prided themselves on Tuesday
will, perhaps, receive a severe shock
when it is known that S3, 3,2S0 900 worth
VI DeAI L dllClSNO JULIUS, LUZ WHICH lH6
board of supervisors of that city opend
bids on the day following the sale in
Los Angeles were oYerbid fifteen times
by financiers throughout the country,
a total of over $52, 900, 900 being bid in
the aggregate ~ 101 intending pur-
chasers.
Reflects on Los Angeles
Among the bidders for the San Fran
cisco bonds are found the two firms to
which were let jointly the good roads
bonds this county, James II. Adams
q Co. and the Los Angeles Trust COM
pany, and their bids for the northern
bonds were at a much higher rate than
the offer made here, the first named
company Offering bonus of $217,000 for
the entire issue of $2,2S0,000, While the
trust company offered $500 more than
its competitor.
This apparent reflection upon the val
ue of Los Angeles county bonds in the
financial marts of the country is eX-
pected to further the sentiment already
created against the action of the local
board and show beyond doubt that
was made when that body dis
posed of gilt-edge securities at private
sale and without an opportunity being
given for competition. The ethical con-
tention of certain supervisors that they
believed a pool might be formed will
also be exploded when the experience
of the San Francisco board is consid-
cred.
The advisory board will meet this
morning to again consider the action of
the board and the result of it's de-
will be placed before the
board of supervisors at special meet
ing to be held tomorrow.
OSS