Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-11-07
SHOWS HIGHER
BIDS OFFERED
EXPERT SAYS OTHER BONDS
BRING MORE MONEY
ARGUMENT is BEGUN IN GOOD
ROADS BOND CASE
Attorney LawIer Admits Evidence Of
Fraud Might Exist in Check
on Local Bank Being
Required

Attorney Oscar LAWYER began the ar
gument in the good roads bond in
junction suits in Judge Bordwells
court yesterday, addressing the court
one hour.
Following his argument J. c. Drake,
president of the Los Angeles Trust
company, was placed on the witness
stand to state the value of Los Angeles
county and city bonds, as compared
with those of other municipalities and
counties in various parts Of the coun-
try.
He compared premiums secured at
bond sales in Philadelphia, st. Louis
and San Francisco with the price Of
fered for the Los Angeles good roads
bonds, showing higher bids were made
for the former securities. This, he ex-
planned, was due to the ease with
which they can be handled In the east
while, he stated, the debt of Los Ange-
les, being only about $3,000,000 short of
the limit allowed by law, affected coun-
ty securities adversely, and a. lower bid
should be expected.
In reference to the sale of the bonds,
Attorney Lawler in his argument con-
tended that the matter was within the
discretion of the board of supervisors,
and decisions by higher courts showed
this discretion should not be ques-
toned, even if the court would have
exercised discretion in another way.
This fact, he said, would not be ground
for an injunction. The general rule,
he claimed, is to prevent the judicial
authority from interfering with the
action of public bodies, il the latter
have acted in good faith.
Evidence of Fraud
The only evidence of fraud. he said,
is a check on a local bank WAS re-
Quired to be deposited, and this, he
said, is only a suspicion in the mind of
Philo J. BeYeridge, who knew nothing
about it,"
The presumption, he said, is that the
board acted fairly, and he quoted au-
thorities to show if the court should
restrain the board and direct 1t to act
otherwise, 1t would mean the taking
over, by the court, of the rights of the
supervisors, unless fraud we're shown.
IF the court tells the board of SUI
pervisors what 1t should do, then the
court becomes the board of superyis-
| ors," he added.
Speaking of the alleged influence ex-
ercised by w. p. Jeffries to bring about
the sale, Attorney Lawler said there
was no evidence to show Jeffries had
a word to say to the board of super
visors until after the sale was made.
AS to the contract with Jeffries for
printing the bonds, the attorney de-
clared the board is required to decide
which company is best equipped to do
the work.
what is there in the evidence to
allow the board of supervisors to
award this bid to the Jeffries compa-
ny when a bid lower by more than 500
was presented by the Securities Bank
Note company" asked Judge Bord-
| well.
Award Bid for Expedition
Expedition replied the attorney.
"Jeffries had part Of the work already
completed. Another thing, his samples
were superior to any of the others.
| Mr.. Alexander said the samples of the
Security company were equal. Who
was to determine that? Would not the
majority have been recalcitrant IL they
had acted IN opposition to their honest
| opinion?"
But" suggested the court, suppose
the Jeffries bid had been $4,000 and
had been accepted under the same con-
ditions would not the court have some
power in the matter?'
1.-THE difference between the bids
would have been so great in that case,
responded the attorney, 'it would in
dictate fraud and would be an evidence
of bad faith
Former Judge Works will begin his
argument in behalf of Eugene German
and other plaintiffs to restrain the
board of supervisors from proceeding
with the bond sale under present con-
ditions at $3.50 o'clock today.