Omaha daily bee., 1911-12-10
AFFAIRS AT SOUTH OMAHA
Toledo Bond Firm Demands Fulfill
ment of Resoinded Contract.
CoAD AGREEMENT TRANSFERRED
city May FIND that IL Mast Live
IN to same or Have No Market
for PAPER Next Monday
Nipht,

Unless the city COUNCIL agrees 10 carry
out thd contract for the sale of all bonds
to be issued In the year 1912 with splitter,
Rorick and company, the assignees Of J.
r. Coad, the original bidder and pur-
chaser. Il is possible that there will be
no bid offered on a $4,000 issue Io be
sold next Monday night
This was learned yesterday evening
when J. w. Long. representative OF the
Spitzer. Rorick company OF Toledo called
upon CITY Treasurer John q. Gillln and
informed him that the original contract
was binding and valid, though it has
since been resclnded by the council and
il appears that I'm the event OF its en-
forcement, the city stands to lose some
thing in the nelghborhood Of Si2,0Oo.
Late last evening j. w. Long, who Is
registered at the Rome hotel in Omaha,
said he did not care to discuss the matter
at present He said he stopped over Sun
day In Omaha, but when pressed, admit
ted that he had been in South Omaha
and would be here next week when the
renewal bonds are offered for sale.
Apparently innocent on the face of IT,
an issue of bonds for the year 1912 was
offered for sale by the city Of South
Omaha. The bonds draw interest at the
rate Of 5k per cent J. f. Coad. vice
president OF the Packers National bank
bid on the issue ON a premium OF y OF
/ per cent This bid was made and &c
cepted by the city council at a time wher
the bond market had listed the issue al
1O6. The conclusion was that the city
stood to lose and someone TO gain Hi,50
on the deal
cd and
a popular clamor was such that the cit,
council FASTENED to convene specia
meeting at which the contract was re
scinded with the apparent concurrenc,
of Mr. Coad, who never appeared anxious
to press the contract.
COad Assigns Interest.
II now appears that Mr.. Coad imme
diately after the sale Of the bonds hat
assigned his interest to J. W. Lone
agent for the splitter, Rorick company o
Toledo, which, II is understood was II
a position to market the issue at ~ pc
cent, realizing Immediately a per cen
on the transaction, besides the differeno
between the premium paid and that OF
fered I'm the open bond market
A proposition was then made by IN
Toledo company to buy the renewal BOND
TO be sold next Monday night. The prop
osition further embodied an offer to be
come the depository of all improvemer
moneys which were to bear per Ger
interest while on deposit. This time tn
offer OF the bond company was ne
: snapped up, but the council after a cor
ference with local bankers determined
I take more time for the consideration
, the proposition. MIR. Longs arrival
-: the city brings the whole question
Issue.
Some. who are we'll informed, profe'
. to believe that the city may be forced
n live up to the original contract becau'
J. of a suspected agreement among boz
dealers by which certain territory
allotted to certain firms dealing
securities. This assumption amounts
: this. that unless the original contra
: awarded to j. F. Coad and afterwar,
!; by him to the Splitter, Rorick company
( executed the city may not be able
= find a market for the renewal bonds tn
e are to be sold next Monday night III
I proposed bid on these renewal bonds W
s be Az per cent. Splitter, Rorlck ht
2 slgnified their intention to bid. No 9th
> firm has so agreed. Unless therefore t!
} city will live up to its original contra
; assigned by Coad to the Spitzers 1t ms
J, happen that there will be no bidder at Il
meeting next Monday night
In the question Of the contract rescind'
by the council there will arise the pref
= technlcality whether the revocation Of Il
v contract assigned to the Splitter compaI
: by Coad was known to the bond compal
y before its acceptance of the same.
% II will further bring cGt whether
e not the insinuauon that there is BOZ
II trust operating in the country Is true.
e City's Hardware, Dill.
y Despite the fact that there are no ca
q penter shops maintained I'm or about Il
l. city hall Mayor r. }. Trainor- did I'll
!, a hammer yesterday with which to d
= mollsh a recent criticism anent the qua
tity of hardware used by the city Ell
: ployes within the last six months.
According TO the statement, TO whit
N the mayor and officials took exceptio
the hardware bills for the city of Sou
Omaha within the last ak mont
:, amounted to sG66.73. Accordingito a stat
n ment of expense drawn by the office
N the city clerk the exact sum spent {
u hardware amounts TO SGS2l7 The tin
N covered by this expense extends fro
N Tapuar,, until the present date, which