Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-02-04
CENTRE MARKET
SALE OF BONDS
UNDER REVIEW
City Officials Testify Regard
ing Disposition of 100000
Issue to Boston Firm.

Testimony relative to the sale Of
100000 bonds Of the City of Newark
to tie firm of Adams & CO., of Bos-
ton. was taken before Nicholas w
Bindsell. acting as special master, in
the Essex building today. The bonds
were those for the new Centre Mar
ket buildings sold recently by the
city authorities
The hearing was based on a writ
OF certiorari obtained by John L.
Armitage and signed by Justice
Gummere of the Supreme Court. Mr..
Armitage made the application as a
/ citizen of the city
IL appears that the $700, 900 bonds
were awarded at a public sale by the
city on December Is. TO the firm of
! kean, TAYLOR & Co, of New York.
The price was to be 103.75. Kean,
\ Taylor & Co subsequently, refused
] to accept the bonds. The refusal, the
| New York concern said, was due to
an opinion given by its lawyers to
| the effect that the bonds might have
been issued under an act that might
4 be proven unconstitutional.
! Several days later a private sale of
! the bonds was consummated between
I
| Adams & Co. The price for the bonds
was 100.25. 1t is reported that Adams
& Co. was bidder at the first sale
| and that the Boston firm offered
1921 in conjunction with the firm of
, Curtis & Sanger. of New York. The
! difference between this bid and the
/ one at which the bonds were finally
sold made a difference of $1S,200 to
the city of Newark
4 ID
| the First ward, was the first witness
at the hearing this forenoon. He is
Ia member of the finance committee
of the common council.
/ Mr.. Bianchi said there was no meet
] ing of the committee since he be-
came a member this year. He said
| that he signed a common council
resolution awarding the Centre Mar
ket bonds to Adams & Co. He said
that Aldermen Reilly, Phillips and
/ Walsh signed the resolution at the
same time in the office of Comptroller
| Parmly at the city hall.
| The witness said that he did not
/ know there was higher bid for the
| bonds.
Comptroller Parmly then was called.
| He told how the firm of Kean, Taylor
| & Co. had declined TO accept the
bonds after they were named as the
successful bidders at the public sale.
4 The next day two men who claimed
4 to represent the Adams firm called at
! the City Hall and made a verbal
agreement to purchase the 100000
issue at 100.25.
Parmly testified that aft sr a con-
| sAltation with the city's legal de-
| pertinent ne awarded the bonds to
AtssIf1s AZ Cos Hsahes. in his jedg-
ment. for the, best interests Of the
city. He said that he considered that
| 1t would have been decidedly bad
financiering to award the bonds to
any one of the other bidders, who
| might be expected to take the same
/ action as Kean, Taylor & Co.
/ Several members of the financial
1 committee testified that there had
/ been several consultations between
4 the members. Asked whether they
| thought that any question of the le-
| gality of the bond issue should have
| been threshed out before the award
/ ing Of the bonds they replied that
/ they acted on advice given by the
| legal department in which they had
! full confidence.
| According to the testimony, the
resolution awarding the bonds to
Adams & Co. was drawn up by Rich
ard Finn, chief clerk to Comptroller
| Parmly, and chairman of the finance
committee. and presented to him to
the individual members of the finance
committee for their signatures. They
| signed it. they said, out OF a desire
1 to see work on the new market pro-
gress as quickly as possible and be-
| cause they considered the bid of
| Adams & Co. as advantageous as
any which the city could secure.
| Several of the aldermen testified
that they considered it best, in the
/ light of the legal question raised, to
sell the bonds to the first bidder who
offered more than the par value of
/ the bonds. Herbert L. Boggs, as
! counsel for the city, brought out
+ the fact that the resolution had been
! signed by members of both parties
and that it was not a Democratic
move