Arizona republican., 1911-07-13
Outcome Of Much Local
Trouble and Anxiety
ORIGIN OF LEGAL "DEFECTs"
Personal Relations Between
Two Firms Which Gave
Successful Bidders Some
Advantages = Effect of
Recent Court Decisions.

Since the purchase of the sanitary
sewer bonds had been refused by some
of the largest bond buyers in the
United States. on the advice OF a
certain Chicago attorney named
Weber. as IT is understood here,
there has been considerable friendly
interest as to how the successful
bidder for them, Henry c. Ulen &
Co. could afford the purchase.
How is it that you could see your
way TO want the bonds?" was asked
of the president of the company.
Henry c. Ulen, who has been here
conducting the negotiations for his
company. yesterday, s"when others
did not want them?"
We'll. it is like this" said Mr.
Ulen, in substance, as he filled his
grip with his things at the Ford no.
tel yesterday afternoon, preparatory
To departing on the o'clock train
over the Arizona & Eastern for Los
Angeles-''its just like this: You
know it used to be held in a general
way. by the business world, the courts.
cities in a territory of the United
States. through the congress, were
free from taxation. Bids for them
were made on that basis. a higher
interest and premium being offered
for them than would have been Of
fered on the taxation basis. When
the decision of the courts was made,
directly on this point of taxability
and in favor of it, the bidders who
had hidden for them on the non taxa
ton basis found themselves stuck, as
ii We're. and began to hunt around
for a way out of the difficulty. very
naturally They found it in alleging
that their attorneys, on examination,
had found a flaw in the title, a de-
feet i'm the proceedings by which they
had been authorized, or whatever you
please in that line. and therefore they
could not take them. OF course. in a
business sense they could not. having
bid for them on a different basis"
How can you take them, then, any
better than anyone else?"
Well. we are not the only ones
that bid for them. You noticed that
there were three other bidders for
them. didn't you?"
Yes. but will you explain how you
were able to make a lower price than
they-what special or personal ad-
vantages have you for doing it?"
"Wen. you have it right. We have
some special advantages. have no
objections to telling you what they
are You know the American Light
& Water company of Chicago is one
of the oldest construction companies
i'm this line. 1t is fifteen years old.
At one time l was president of il,
but | am not now in any way con-
nected with it officially: I am sim
ply a selling agent have an agree
ment with them to take signed con-
tracts from me. At the same time
am president of the firm of Henry
C. Ulen & Co, bond buyers. a younger
firm, with headquarters also in Chi
cagO. While the two firms have no
official connection with each other,
yet the interests of each are COM
bined in me, personally. and I can
sometimes make better prices than
other bidders. I do not take every
thing in sight. however-sOme con-
tracts we do not care to bid on. But
we often get what we go after.
have no doubt of the legality of PhOe-
nix sewer bonds and l believe we
have everything fixed up to our mu-
tual satisfaction. l trust so. l have
tried to do my share toward il, and
l do not see but the people and of
ficials of Phoenix have We shall try
our best to put you in a good sewer
system"