Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-05-01
BONDS IN A PRETTY TANGLE
Second High Bidders Refuse to Take
the Big Issue.
COUNCIL IN SPECIAL SESSION
New Bids Are Asked and VIII De
Opened at Five O'clock wednes-
day Afternoon-suitsA Are
Liable to Follow.

City Compt.oll,r Cosgrove was in
structed by city council in special session
yesterday morning TO notify bond houses
bonds, refused by c. II. Venner & Co.
Of New York. would be accepted and
opened tomorrow afternoon st 5 o'clock.
This action followed a warm session in
al ich Frank Meyers. representing Mer-
i. Oldham Il Co. OF Boston, insisted that
AIS company proposition be accepted,
since Parkinson Burr. second high
bidders. had withdrawn their bid. The
bid OF Meyers client was S.0lL Venner
& Co. presented a bid og Ss0as. Ven
ner & Co. check for $500. placed as a
forfeit in case OF their failure to accept
the bonds. has been cashed and the
money is being held by the city,
Representative Phillips Of SpitZer-Ror-
lex q Co. had been notified that new
bids would be received and insisted that
those bids received by the comptroller
Monday afternoon be opened and the
bonus declared sold TO the highest bidder,
Mr.. Meyers objected to this as manifestly
unfair since his bid had been published
and could therefore be overbld by few
cents. He asked for a chance to present
a new bid. New bids had been received
from splitter Rorick & Co. R. l. Day
& Co. and Kountze Bros.
Bids Opened "wednesday.
All bids will be opened this aft
ternoon at Sis O'Clock. The city has
but $4,000 more bonds mature June
and must be taken up with money from
this $4,000 issue.
City Attorney John A. Rine told the
council the city would keep the 5000
check OF Venner & Co. but that suit
would probably be started by the New
York firm. Grounds for the suit will be
probably that City Comptroller cosgrove
did not place before the bidders the whole
truth. although the comptroller declares
there was nothing misleading In his
statement nor the advertising for bids.
venner & Co. maintain they were led
to believe the assessed valuation OF prop
erty in the city was sls4.0oo.ooo Co.'S
grove points to his statement. which is
That pfOptiNg city as
sessment purposes" is that amount
Adjustment OF the difficulty between
the city of Omaha and c. II. Venner &
Co. OF New York over the sale Of 500, 900
city bonds was discussed at the council
in committee OF the whole Monday
afternoon and settlement at a special
meeting called for the afternoon was pre-
vented by the absence OF NJ. F. Funk
houser.
Funkhouser Campaigning.
By law notice OF such special meeting.
must be served at the homes of council.
men. Mr.. Funkhouser was not at home
A deputy was authorized to find him
After searching for two hours. while tbs
council waited In idleness. the deputy
came back and reported:
He is out campaigning. / found trace
OF him at the McCaffrey saloon. Six
tenth street. between Dodge and Doug
las. He had come up there in an auto
mobile and, they told me. had Just left
He was with John A. Swanson"
City Comptroller Cosgrove says venner
& Co. have given no reasons for refusing
to take the issue, except that they under
stood the assessed valuation Of Omaha
property to be sl64.ls7.l2o. when that Is
the value Of property for assessment
purposes, and therefore the assessed
value is but one-fifth OF that. Frank A.
L uray. former treasurer. had placed this
after the statement assessed
but the statements issued by
Mr.. Cosgrove have designated II value
Of property for assessment purposes.
Wires The Bee.
c. ii. Venner q Co. wired the follow
in committee Of the whole Monday
ing to The Bee Monday afternoon:
The article In your issue Of Friday
last stating we gave no reason for re-
fusing to take 10000 Omaha city bonds
is incorrect and unjustly reflects on US.
Our letters and kilograms TO the city
April % and Is contain suf-
ficient and valid reasons which In justice
to us and the public you should pub
fish that the real facts may be known.
Assistant City Attorney Lambert has
taken with him in his visit to New York
all except one letter written by venner
6 Co.. according to Mr.. Cosgrove.
A telegram was received from Parkin-
son & Burr of New York. saying that
under the circumstances they did not
prefer to take the bonds" They were
second high bidders. offering 5000, as
against $500, bid by the other New
York comnany