The Hood River glacier. (Hood River, Or.) 1889-1933, 1910-05-12
CITY DECLARES
BOND DEAL OFF
NUVEEN DELAYS CAUSE SUSPICION
Signs of Understanding by Bond Buyers
With Construction Firm and Possibility
With Local Company.

AT an adjourned meeting of the city
council held Tuesday night, City
Recorder Langille was instructed to
notify John Nuveen & CO., Chicago
bankers, who had been awarded
the municipal water bonds, that nego-
tiations between that firm and the
city were to be considered at an end,
because the long delays and many
excuses for not closing the bond deal
offered by the eastern bankers were
not considered as legitimate by the
council.
A letter was received Tuesday from
Nuveen & Co., which was the first
communication which the city has been
able to get from the Chicago concern
in several weeks, with the exception
of couple of kilograms. In the
letter received this Week, the eastern
bankers raised several objections to
closing the bond deal, which in view
of other knowledge which the council
has recently gained about the Chicago
concern, the city fathers to believe
that-the further delays were not being
for the city's best interests, and that
the Nuveen people did not intend to-
take the bonds at all.
The City has had no absolute as
surance that the Nuyeen bankers
would be able to ultimately swing the
bond deal and reports have been had
from other towns in Oregon where
the same company has been. awarded
the bonds and not taken them finally, 4
The constant appearance and reap
pearance of representatives of the
American Light & Power Co., Of
Kansas City, who have been trying
to persuade the city officials to give
them the contract for building the. new
water system and to turn the bonds
over to them as payment for the work,
has led the city ocffiials to believe that
some understanding might exist be.
tween the Chicago and Kansas City
concerns, the bankers playing a delay
game to give the contractors the, work
on their own terms. Similar circum-
stances have existed in other Oregon
owns. At LaGrande, Nuveen & Co.,
failed to buy the bonds and the con-
tract for the water system was given
to the Kansas City firm, and it is
understood that the work was not
satisfactory in the eastern Oregon
town. The agents of the American
Light & Power Co. cited this instance
of their doing the work in urging that
Nuveen would not close for the bonds.
At Medford the same sort of a.
situation existed, but the work was,
not given to- the Missouri firm and it.
is understood that Npveen is now
causing.delay at Cottage Grove, where
a condition such as is in effect here,
exists. t.,>- rt .s Nu,
In the correspondence which 4 the
city officials have had with.
Nuveen &. Co., the latter has mem
toned the Efact that on several oe-
casions they had received letters from
H. F. Davidson, president. of the local
water company, threatening htiga- 4
tion should the Chicago men buy the.
bonds, 1t has been limited that there
may have been an understanding be-
tween the Chicago bankers and persons
interested in the, local company for
the bonds to be held up until the com
pany could arrange its affairs and sell
their plant to the city.
The city will Immediately take
steps to re-advertise, for the sale of
bonds and it is probable that an ordin-
ance will come before the council Mon
day night providing for a new sale of
bonds. '"aa .iaf.s 3.
The council Tuesday night decided
that new ordinance was not necessary
for a sane July Fourth, but that. the.
ordinance which prohibits the use of
explosives and fireworks in the city
limits should be enforced to the letter,