Los Angeles herald., 1908-07-10
RIVAL BIDDERS
FOR BOND ISSUE
BOOST PRICES
COUNCIL LIKELY TO COM
PLETE SALE TODAY
BETTER QUOTATION MADE By
EASTERN FIRMS
Prevailing Opinion Is That the Offer
Should Be Accepted and Funds
for Aqueduet Work
Assured

The market for Owens river bonds
again went up yesterday until at
o'clock they were worth premium
OF one-rourth of per cent and ac-
crued interest, instead of one-eighth
of 1 per cent, the closing quotation
Wednesday night.
]. W. Bullard, representative of the
A. B. Leach and Kountze Brothers
syndicate, which submitted the first
proposal, was the last bidder yester-
day. But his bid was not accepted
and action was again delayed until 10
o'clock this morning, when the council
will reconvene and either accept or
reject this proposition.
Not only did Mr.. Billiard advance
the premium to be paid on the S2,040,000
worth Of bonds for immediate purchase
but contracted to take $2,040,000, de-
livery to begin February j, 1902
No Acrimonious Remarks
There were no acrimonious person
alities INDUCED in yesterday. Probably
because the antis had been driven
speechless by this offer of the New
York bankers. When this last proposal
was read Councilman Wallace had not
a word to say. He turned in his chair
and deliberated deeply, while Council
man Dromgold, leader of the pros. took
advantage OF the occasion to remind
Mr.. Wallace that the sale OF S4,OSO,O0O
worth of the bonds practically disposed
OF the chief objection Mr.. Wallace had
made to the original proposal.
Mr.. Wallace had contended In the
executive sessions that II the bond
buyers would show disposition to
take up S5,O00,00O or $6,000.000 of the
bonds instead of only the amount the
city was required to sell Immediately
he would withdraw his objections. Mr..
Wallace, later, mildly contended ne
wanted the buvers to contract for about
one-third of the entire issue, or $,-
600, 600, and he. would Withdraw all
further objections.
When the council met yesterday it
was to consider proposals from COM
peting bond Buyers. One sealed bid
was on the desk of the minute clerk
and although 1t had been previously
understood the bidding was TO have
been open and competitive on the floor,
the fact that one of the competitors
had brought in sealed proposal made
it necessary the council should order
all bids submitted in sealed envelopes.
For this purpose long recets was de-
clared and the rather strained situa-
ton was not at all relieved when the
council later learned the first sealed
proposal that made the long delay and
shut off the possible advantage of open
bidding was only foolish missive from
some fictitious firm, signed r. E. Morse
& Co., offering to take the entire issue
of bonds at $1.0O down and $1.O0 per
week.
Three Bids Received
Three real bids were received, how
ever. One was from j. II. Adams &
Co. and the Los Angeles Trust COM
pany. acting together to pay par and
500 premium for $2,040, 900, provided no
other bonds of the same issue were
sold before March /, 1909. N. w. Har-
ris & Co. offered par and accrued in
terest for $2,040,00o of the bonds pro-
vided no other Owens river bonds were
sold before June /, 1909. Leach &
Kountze submitted the same bid that
has caused all the trouble.
When all the bids had been consid-
cred and the city attorneys opinion
asked 1t was found the only regular bid
and the only one which the council
could consider fro,n a legal standpoint
was the bid of Leach & Kountze. City
Attorney Hewitt ruled the city could
not legally bind itself not to sell any
more bonds until any given time.
When this point was made clear
Councilman Dromgold moved to reject
all bids and advertise for new ones.
His motion did not receive a second,
and for as much as five minutes not a
single councilman had anything to say,
which is cons'dered remarkable for
them.
Then Mr.. Wallace remembered some
thing. w. 3. Mathews, aqueduct at
torney, just previous to adjournment
. Wednesday, had stated II given until
noon yesterday he would present bid
for $2,040,000 without any strings on 1t
as to options. 1t was this proposition
Mr.. Wallace so suddenly recalled He
reminded Mr.. Ma.hSt.s of his promise,
and Mr.. Mathews replied the proposal
To- -fe. o. - . r.. 4.
had in mind when he made his state
ment.
Immediately afte, adjournment on
Wednesday Mr.. Mathews had reached
N w. Harris on the telegraph wire,
and Mr.. Harris replied he would make
such proposal, but that w; ]. Small,
their representative then on the ground,
would present 1t. In hn aside Mr..
Mathews declared If the council would
only talk long enough he would have
the same proposal from N. w. Harris
without the question of time for future
sales involved.
Wallace objects
But this did not please Mr.. Wallace
at all The proposal of j. II. Adams
& Co., which the day previous he had
so urgently and eloquently supported,
was declared Illegal by the city attor-
ney because of the time clause, and as
consequence he was not in the best
OF humor
He declared he expected Mr.. Mathews
would bring in a proposal entirely
separate II bm that submitted by any
of the bon,l buyers who had appeared
before the council. He said several
other things and relieved himself to
some extent.
When Mr.. Wallace had quite finished
what he had to say about Mr. Mathews
j. w. Bullard asked the council to go
into executive session with him and he
would make a proposal and try to reach
some CONCLUSION with the council.
Dromgold w-es In favor of the executive
session. but Wallace, who has been the
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