Omaha daily bee., 1915-04-25
AFFAIRS AT SOUTH OMAHA
Issue of $S4S, 900 Bonds Surprises
City Officials Even at It's
Size.
PARK BOARD HAS ITS TROUBLES

fhhh bUhhD HAS ITO lhVUbLEo
Possibly the greatest financial transac-
ton that was ever puiiec orr ny the city
administration Of South Omaha was
effected this week when the bond issue
OF S3sS0o0 was contracted Tor with J. w.
Long. agent for Spit1er, Rorick & Co.
/ OF Toledo. The deal was involved and
there appears 20 have been a general air
OF misunderstanding, not to say misap-
/ prehension as to amounts and interest
J involved. when Long made his offer OF
purchase to the city council Monday
night the offer comprehcnded an issue
OF refunding bonds amounting to $1,000
for which tho city was to pay per cent
interest instead OF 5h per cent interest.
As II turned out tho. bond company got
an issue Of SSES0c0 for twenty years with
out any redemption clause and Mt the
rate Of per cent payable somi-annually.
The whole deal is calculated to mtan at
least Ssl. 900 profit to the bond company
allowing nothing for expense money or
possible commissions.
| lawful HiE one"
| The deal was closed Wednesday even
ling and for the most part concluded In
the absence OF Mayor Tom Hector who
left the city hall after committee meet
ing in the city hall He returned after
the meeting had convened and stated
that the resolution of purchase had been
framed and determined upon without any
discussion on his part. when l re-
turned from the country Wednesday
evening l found that there was nothing
to do but sit tight" said the mayor yes
terday. II make no doubt that the
transaction IL good one said the
mayor yesterday, but It lie an awful big
one for South Omaha"
Agent Long for the bond company Ia
said to have done most of his work with
tho council and IL understood TO have
stated that he would have been able to
swing the deal even without the mayor $
Assistance.
Treasurer Martin said he had been
, given to understand that the issue
, would only involve $4,000 with the
, privilege OF redeeming $4,000 at the time
of issuance. The contract OF purchase
makes mention of no agreement to per
, nit the redemption OF $4,000 at time of
issuance but Il Is understood to have
heen made viva voce a part of the con-
, tract.
what bonds Included.
Tho refunding bonds comprise $4,000 Of
sewer bonds refunded in 1895 at 8 pei
' cent; Sl0.OOO OF viaduct bonds refunded
in 1895 at per cent The additions
h 500. 900 were grading and paving b]bs,
City Clerk Wheeler said yesterday tina
Il had not been the practice TO advertise
tho sale of bonds and that the law die
not require II to be done, as he recalle'
the matter. A. H. Murdoch. former cit!
attorney, stated that II was his impres
sion that the sale Of bonds had 70 be ad
vertised under the law.
James ]. Fitzgerald, real estate an
general insurance and bond agent, state
that there was at present a good marke
, for Omaha 4s and avs.
q "of course the money market is cas-
/. now" said Mayor Hector. and 1 sup
!. pose there will be quite a profit in III
. !, handling of these bonds"
Agent Long 10 quoted TO the effect this
y he had discussed some OF the features 9
the purchase with tho Omaha officlal
= II being proposed to reissue the bond
under the Omaha title as soon as Oh
: two cities have been consolidated Thi
reissuaneo will only affect the title an
Q will In no wise lessen the interest or th
|
= pay the interest.
II was said yesterday that there wa
possibility Of suit to enjoin the cor
summation OF the contract signe
Wednesday.
Park Board Politics.
p When the fret OF May comes round III
South Omaha Park board, which ha
% been furnishing diversion for come tim,
will baya fNvn additionaI geata m he file
- or refilled. The terms Of President Ere
y Hefflinger and Member r. c. Caldwe
- VIII rur ou' m that dat"
Recently the mayor. Willingly or ur
u Willingly, appointed two members VIII
:. are likely to spill the beans. Ben sar
u ger is one and John Wall the other Sar
ger is noisy and a fighter. Wall Is quie
but steady purposed. Both men al
looked upon as citizens who will not a
-. low any member or members of the boar
\ tell them what to do.
a A special meeting called for Thursda
Is night, proved a failure for lack OF
D quorum and possibly because the chanS
10 TO get the extra $4,000 bond issue wei
h glimmering when the $4,000 was so
TO Wednesday. 1t II possible OF course thi
~ the new $4,000 OF bonds will be issu,
Is August 1 and that the board will q
g. its $4,000 then, but hardly Mt the pri'
offered.
ie Mayor Hector was present at the boal
" meeting and informally discussed affai
m OF tho board and also annexation. Al
r. nexation especially was the topic OF di
a cussion, it is said. II seemed TO be Il
1t opinion that the governor would not CT
Of a special election for a long time al