Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1915-06-11
Want to Wash Their Hands Of
the Entire Transaction,
They Say.
CALLED "UNBUSINESSLIKE"
Criticise Act of Bond Firms in
Demanding Money Placed
in Bank Where They
Get the Interest.
CALLED "UNBUSINESSLIKE"

Apparently dissatisfied with the
entire transaction surrounding the
sale of municipal electric light plant
bonds In the amount of $3.50, 600,
the J. D. Everitt and A. B. Leach
bond concerns will make application
to the Board of Aldermen tonight to
be released from the deal, according
to information In the hands CT the
aldermen. The bonds were original
ly sold to ]. d. Everitt & Company
and A. B. Leach & Company, almost
under protest, the buyers refusing to
take them because of unsatisfactory
conditions in the financial market.
Finally the bond firms agreed to let
the city have the money If it was de-
posted in an Orange bank and they
receive the interest Of 1t until 1t was
used. The city consented and since
then certiorari proceedings have
been started to halt erection of the
plant.
The act of the bond firms in giving
the money only on condition that 1t
be deposited at Orange and they get
the interest, has been termed by
city officials here as wholly unbusi-
nesslike, and several high officials
here, including aldermen, state that
it undoubtedly gave them a BLACK
eye' In the financial world.
Operations Held Up.
David McGregor, petitioner for a
rule to show cause why writ OF
certiorari should not be issued to re-
view the proceedings, thereby staying
the operations, sets forth over his
aff1davit that the Everitt and Leach
concerns perpetrated fraud upon
their competitors In the business
world when they turned around af-
ter the awarding Of the bonds and
agreed to take them ony after the
money was depos ned in Orange and
they get the interest. Mayor Gar
retson, commenting upon this sub
iect today, stated that there was
no evidence of fraud, as the whole
transaction was unforeseen, coming
through change in the financial
world largely through the sinking of
the Lusitania.
Another high official, who refused
to be quoted, stated that the deal
was raw and unbusiness-like, but he
did not hold it to be fraudulent.
Other aldermen spoke likewise.
To Ask for Release.
Members of the bond firms are due
at city hall tonight to ask for re-
lease. Speaking upon this subject
today Alderman-at-Large w. Guy
Weaver stated that the firms ap-
peared willing to waive conditions of
deposit and interest and go before
Justice Bergen to testify n the certi-
orari proceedings If the aldermen
would in turn release them. Mr..
Weaver said he believed the hands
of the aldermen were tied now with
the proceedings under way and he
believed nothing could be done in
the way of granting a release.
It will likely be more than q
month before Supreme Court Justice
James j. Bergen renders decision
on the rules to show cause sued out
by David McGregor, of this city, in
an effort to have writ of certiorari
issued to review the proceedings
whereby the Board of Aldermen
awarded the contracts for the plant
to the Watson-Flagg Engineering
Company, and the sale of the bonds
to pay for same to A. B. Leach &
Company and Everitt & Company,
New York bond brokers'
The city, represented by City
Attorney Andrew Wight, former
Judge c. G. Hommann and Borden
D. Whiting, Of New York City, and
the plaintiff, represented by Joseph
e. Stricken, will have until June 26
to file briefs on the rules. There
will be no oral arguments, Justice
Bergen having decided to consider
the rules on briefs submitted. Both
sides are working diligently to pre-
pare their respective phases of the
case. II the rule Is allowed 1t will
mean very probably long delay in
the construction of the electric light
plant, which has already been tenn
porarily held up. In that case all
the proceedings of the Board of
Aldermen In reference to the award
ing of the contracts and bonds will
have to be handed up to the superior
court for review, arguments present
ed pro and con concerning the legal
ity of same, and then considerable
time would undoubtedly elapse be-
fore the justice would reach a decf-
sion. Whether adverse to either the
city or the petitioner appeal might
be had to the Court of Errors and
Appeals, final decision by which body
might not be had until next spring.
ATLANTIC CITY $3.50 EXCURSION
Sunday, June 13 and every other Sun
day until September s, incl, via New
arfh bnxz