Los Angeles herald., 1908-09-19
|. A. TRUST co.
OFFERS TO CALL.
Off BOND SALE
BANKERS BOUND BY THEIR
EASTERN HOUSES
REVOCATION NOW UP TO BOARD
OF SUPERVISORS
Local Firm Expresses Willingness to
Withdraw from Deal, but Doubts
Agreement of others-Flght
in Courts Probable

IN HE Los Angeles Trust company
yesterday expressed willingness
4 to withdraw from the transaction
between itself, James II. Adams & Co
and the board of supervisors, when that
body, on October 8, disposed of by pri-
vate sale $3500,000 good road bonds
This is the first indication that any
party to the sale has receded from the
position taken immediately after 1t
was carried out and maintained to the
present time, notwithstanding the pub
lie sentiment aroused over the action
of the solid three"-Supervisors Pat
terson, Eldridge and Wilson.
But while acknowledging its own will
ingness to withdraw, the trust COM
pany says 1t is only one of the parties
to the transaction, and from the
nature of it's communication to F. w
Blanchard, secretary of the good raods
advisory committee, yesterday, 1t is
not believed the sale will be vacated
except after a legal battle and in the
event that the taxpayers are successful
Letter to Blanchard
The letter received by Mr.. Blanchard
yesterday is as follows:
los ANGELES. Sept. IS, 19Os.-Mr
F. w. Blanchard, secretary good roads
advisory committee, Los Angeles.
Dear Sir-We are in receipt of your
letter addressed to us, asking that we
withdraw our bid, made in conjunction
xryith To r.
good roads bond issue of $3,500,000, and
in reply desire to call your attention to
few facts:
First. That this company was in
vited to make an offer for these bonds
Second. That at the moment wher
the first criticism of the sale of the
bonds was made we invited your adj
visory committee to make the fullest
and most complete investigation of oul
connection with the entire transaction
.'Your committee having found, ani
publicly proclaimed, the fact that th'
offer made by us was honorable il
every respect we do not see how w
can-eornply with your wishes more thar
| to say that If any equitable and lega
| way can be found for us to Withdraw
| then we express our complete willing
ness to do so. We beg to remind you
however, that we are only one of th'
parties to this contract, which has beer
accepted by the board of supervisors
and we are not at liberty to withdraw
from 1t until we may be released by
them, or by the award being declared
Illegal. The bond houses in the east
for whom we are chiefly acting, have
employed Messrs. Dillon & Hubbard,
New York bond attorneys, as counsel.
This firm has advised our principals
that in their opinion the contract is
h hx,
them that they will hold us to strict
performance of said contract. Very re-
'Los ANGELES TRUST co.
by J. c. DRAKE, President"
Up to Supervisors
Apparently, it is now the place OF
to rescind the contract entered into SO
inadyisedly, but Judging from the ex-
preston of Chairman Patterson on
Thursday, this step will not be taken.
What explanation the majority of the
board will make regarding the state
ment by the trust company that the
latter was invited to make an offer for
the bonds is a matter of conjecture,
and again raises the query, why was
an invitation extended to one or two
firms and not to others?"
James R. Martin, who acted as agent
for the firm of James H. Adams & Co.
at the time of the sale. said yesterday:
1T am not prepared to say what posi-
tion we may take in the injunction suit
filed Thursday TO restrain the board OF
supervisors and others from proceeding
with the sale, and do not care to say
anything further than that the situa-
tion is unchanged"
None of the supervisors was at the
court house yesterday.