Perth Amboy evening news., 1915-06-23

City treasurer James A. hnOueS,
on examination before James s.
Wight, supreme court commissioner
In the certiorari proceedings brought
to prevent the erection OF munich
pal light plant here, admitted on
cross-examination this afternoon
that the city would have been better
off IL it had accepted the bid of the
next highest bidder for the $3.50, 900
In light bonds and deposited the
money at three per cent, than under
the conditions which they awarded
the bond issue to Leach & Company
and Everitt & Company. In making
the award to these brokers 1t was
stipulated that the money should be
deposited in the Orange National
Bank year without interest.
Mr.. Rhodes testified to the sale of
the bonds and his delivering them to
the brokers in New York. He ad-
mitted on cross-examination that he
did not remember any previous de-
posit of $150,000 by the city made
in any bank without interest. Mr..
Stricken questioned the witness
closely as to the sale of the bonds
Rhodes described the details of the
transaction which took place when
the bonds were sold in the Office of
Everitt & Company He declared he
received check from A. B. Leach,
OF A, 3. Leach &c Company, and
signed by A. B. Leach; that he re-
ceived bank pass book on the
Orange National Bank made out to
the city of Perth Amboy, and en-
dorsed the check for the $150,000
SO that 1t could be credited to the
city of Perth Amboy in the Orange
bank. He actually had the check in
his possession about three minutes,
he said; did not actually have the
money in his possession, and did not
go to the Orange National bank to
deposit the check, instead turning it
over to Mr. Eyeritt, of the bond
brokers' firm, Mr.. Eyeritt being an
official of the Orange bank.
When Mr.. Stricken asked the city
official why the award was made to
the brokers in question when in his
opinion the city would have been
better off in awarding the issue to
the next highest bidders, Mr.. Rhodes
explained that the award was made
because the Everitt and Leach COM
panies were the highest bidders. He
explained that conditions developing
later caused the brokers to stipulate
the deposit of the money without
interest.
On being asked if he were free to
take the $150,000 to any bank he
wanted to deposit same, the city
treasurer declared that by the agree
ment reached the money had to be
deposited only in the Orange Nation
al Bank.
Borden D. Whiting objected siren
uously to this line of questioning.
He eontended that the actual details
of the delivery and sale of the bonds
was a transaction having no bear
Ing on the actions of the Board of
Aldermen. Mr.. Stricken then asked
the witness If what he did in refer
enee to the sale of the bonds was
with the full knowledge of the coun-
ELL. and he replied in the affirmative,
declaring he was instructed so to do
by that body.
City Clerk Wilbur LaRoe was on
the stand for about an hour, most
Of which time was taken up by the
attorneys in getting into the record
IN accounting of a certain letter re-
eeiVed by some one from the bond
brokers' and dated May 6, purporting
10 inform the Board of Aldermen
that the brokers could not accept
The bonds on the terms of their
original bid. It was brought out
That the letter was directed to the
Board of Aldermen and mayor, but
Mr.. LaRoe declared he had never
received same, and that it had never
come before the council at a regular
meeting. He declared he was not in
a position to say whether it came
before the body at committee
meeting. Mr.. LaRoe, however, tes-
tilted that he had seen a copy of the
letter in the city treasurer's office.
Mr.. Stricken desired it brought out
that the council had taken cogniz-
ance of the letter at committee
meeting, but Mr.. LaRoe declared he
did not have access to committe
meetings.
Owing to the demand for metals in
this country, the cost of municipal