Los Angeles herald., 1910-06-25
BIC FIRM OFFERS
TO BUY 100000
AQUEDUCT BONDS
New York Life Insurance Com
pany Seeks to Invest Half
Million Here
OFFICIALS HOLD MEETING
Refuse Information on Discussion
Held Behind Closed Doors.
City Attorney Confident
OFFICIALS HOLD MEETING

At meeting, no details of which
were divulged by those concerned,
Mayor Alexander, members of the city
council, the city attorney, members of
the board of public works and the
water commissioners, for three hours
and a half yesterday discussed q plan
whereby the bond syndicates handling
the aqueduct bonds may be amicably
induced to pay the $4,000 that the city
claims is due July 81 as the regular BIZ
monthly installment for bonds fur
nished but which the syndicates have
refused to pay on the ground that they
have purchased sufficient extra bonds
to free them from meeting another
payment until January, 1911. 1t is
hoped to keep the work on the aque-
duct in full swing by reaching some
sort of an agreement.
AS an evidence of the confidence that
eastern capital has in Los Angeles.
Marco II. Hellman, vice president of
the Merchants National bank, received
Il telegram from the New York Life In
surance company yesterday, offering
to take 100000 of the aqueduct bonds,
subject to the decision of the COM
pany's counsel as to their legality.
While 1t was rumored that this
proposition was discussed at the ex
ecutive session of city officials yester-
part of those present. They say the
offer was read but not discussed.
NO SUIT CONTEMPLATED
of the board of public works, when
questioned on the subject last night,
I'VE did hear the offer of the insurance
company, but no decision to accept
was reached. 1 am not at liberty to
give out our deliberations"
City Attorney Hewitt, when ques-
toned as to the possibility of a suit
being filed to compel the syndicates to
live up to their contracts, emphatically
denied that legal action was contem-
plated.
II want the public to understand
there is no suit contemplated by the
municipality. We hope that through
negotiations the syndicates may be in
duced to live up to the contract that
they made with u.s. The bi-monthly
installment of $4,000 is due the city,
and 1 consider that the city's conten-
tion is a valid one,'' he said.
What does the city intend to do re-
garding the offer of the insurance COM
pany?" was asked.
AT present am not at liberty to
say The offer certainly shows the
conndence that eastern capital has in
this city. In the face of the numerous
derogatory reports that are being cir
culated about the city-reports which,
1 am glad to say, are wholly without
foundation-one of the strongest insti-
tutions on this continent expresses a
willingness to buy our bonds. II shows
that our bonds are salable, and that all
talk to the contrary is groundless.''
COMPANY BIDS FOR BONDS
Marco H. Hellman brought about the
offer of the insurance company by
telegram sent to it on Wednesday, ask
ing that it make a bid on the aqueduct
bonds. Yesterday morning the answer
came authorizing Hellman to make a
bid for $500,000 worth of the bonds on
q basis to net the company Az per cent
per annum. Hellman was jubilant over
the promptness with which his adj
VanceS were met.
"I am sure the east regards US as
being on a substantial footing" said
Mr. Hellman, land any injurious re-
ing us are practically disproved by this
offer to buy our bonds. Such a con-
servative institution as the New York
Life Insurance company Is not in the
habit of buying bonds that are not
considered gilt edged
Those at the meeting in the aqueduct
boards rooms in the Central building
Yesterday were Mayor George Alexan-
der, City Attorney Leslie r. Hewitt,
Councilmen Betkouski, Gregory, Wash
burn and O'Brien. the members of the
board of public works, the water COM
missioners and W. B. Mathews, attor-
ney for the aqueduct.