Los Angeles herald., 1908-07-09
coUNcILMEN r. w. pRoMeoLD
ABOVE, AND A. J. WALLACE
WHO cLASHED VIOLENTLY
OVER BOND SALE

ding the city to sell any more bonds
than the $5,000,00 involved within one
year of date of sale.
This proposal brought out long and
acrimonious discussion, In which Coun-
Gilman Dromgold openly accused
Councilman Wallace of receiving a
commission from Adams, Phillips &
Co. and J. G. Drake In the event the
proposal he was so vigorously cham
pioning was passed.
Wallace Indignantly denied the
charge and demanded Dromgold with
draw 1t. Mr.. Dromgold did so with
some reservations that left the matter
very much in the position in which he
had previously stated 1t.
While Wallace and Dromgold were
having their little set-to, Mr.. Mathews
again took the floor and stated money
was Immediately needed for the aque-
duct.
''There is about $400, 900 due -contrac-
tors, and some of them are getting
very anxious for their money" said
Mr.. Mathews. "In fact, some have
threatened to begin action by putting
sight drafts against the city through
the banks. and in that event these
drafts would so to protest without
money in the aqueduct fund where
with to meet them. This would have
very serious effect on the city's
credit. The amounts and the deliv-
cries mentioned In the proposal Of the
local bankers is not sufficient to carry
the work on the aqueduct for more than
q quarter of the way, and at the rate
Of the installments offered the work
cannot be completed in the four and a
half years the people have been prom
ised. / object to options on further
issues of the bonds and l repeat my
offer to sell the s2,040,000 inside of
twenty-four hours, without any strings
to it,
Here ]. H. Adams of Adams, Phillips
& Co. asked to be heard.
as that what you all want? Would
it make you happy to sell this $2'O4O,OOO
without any options Whatever"
Several of the councilmen stated it
would make them most happy.
Offers to Buy
"Then I make that offer right now.
We will buy these bonds at Az per
cent and say nothing about options"
]. W. Bullard, representative Of
Leach and Kountze, intimated he would
do the same and probably better.
w. j. Small sent to Los Angeles by
N. w. Harris & Co. Of New York, large
bankers in that city, asked that the
matter be laid over until today, to
give him a chance to bid on the bonds.
When these had been heard, Wallace
moved the bonds be awarded to Adams,
Phillips and the Los Angeles Trust
company on their last proposition to
take the 81, 040,0 900 without the option
contained in their first proposal.
In spite of the declarations Of the
of the New York bank
ers that they would come In with pro-
posals if given until today better than
that submitted by ]. H. Adams, Mr..
Wallace insisted on the passage of his
motion with all the eloquence at his
He advanced every argu-
ment he could think of In a long adj
dress. When one of his arguments at
ter another had been undermined by
and others, he still insisted
the bonds be awarded to the local buy
ers, basing his plea on moral grounds
alone. He believed 1t was not right
eous to permit the New York bankers
to take advantage Of the knowledge
gained by the open proposal of the local
bankers on which to base their bids,
after councilmen had told
Mr. Adams that what they wanted was
to sell the $2,040.000 without options on
future issues.
He was finally cut off from further
remarks by a motion to adjourn.
sharp bidding is expected when the
matter comes before the council today,
ana IL satisfactory terms are not made
II is probable the council will take the
action many of them think should have
been taken at first and advertise for
bids for the bonds.