Perth Amboy evening news., 1915-05-25
PASS RESOLUTION
ON SALE OF BONDS
S15o, ,o0G Must De Deposited in
Orange Bank, HoWever-AI-
dermen at Lengthy Session.
WEAVER OPPOSES ACTION
Resolution Was Not Passed
Until After IL O'clock This
Morning.

AZ Z lV u ClOCh tulo lnC
Board of Aldermen passed resolu-
tion accepting the latest proposition
of the New York bond brokers In ref
erence to the purchase of municipal
light bonds in the amount of $780,
600, with one proyiso. The one stipu-
lation which the city decided to de-
mand was a provision that at the
end of one year any balance of the
$150,000 which might still be on de-
posit at the Orange National Bank
shall be turned over to the city. The
bond brokers, A. B. Leach & Com
pany and J. d. Everftt & Company,
submitted the latest proposition to
the aldermen in writing last night.
AS stated In Saturdays NEWS the
brokers agreed to accept the bond is
sue provided that the $150,000 be
deposited at the Orange National
bank and drawn out on contractors
certificates as the money is needed.
The session last night-or rather
this morning a stormy
caucus meeting and warm commit
tee meeting. The aldermen sat in
conference in the committee room
from 8 o'clock until 11:40, when the
and allow the board to actually con-
vene before May "a had expired. Di-
rectly after the meeting had been
called a motion was made to recess
and the aldermen did not file back
into the council chamber until
1906 o'clock. A large part of the
committee meeting was taken up In
giving hearings to representatives
from different oil-engine companies
who illustrated and enlarged on the
merits of their different products.
However, the storm broke when
the bond proposition matter was dis
eussed. Alderman-at-Large w. Guy
Weaver led the opposition to the
plan of accepting the bond COM
panies propositions, while Mr.. Hill
ker was loud in fayoring the same
The majority OF the aldermen decid-
ed in favor of same provided that the
stipulation mentioned above were
agreed on.
With the assistance OF the city
attorney the majority of the alder
men drew up the resolution under
protest from Mr.. Weaver. When the
resolution came up for action Mr.
Weaver, under the head of ire
marks" said: 81 think you gentle
men are doing something out of
order. The bond companies have
practically said by submitting this
proposition that you are not capable
OF handling your own money" He
declared that it might be six months,
a year or ten years that the brokers
would have the money under their
At1Y uyh inh hn cif
would be losing the interest money
which 1t otherwise would bear. He
declared that at three per cent. the
interest for one year on the s150,000
would amount to $4,000, $400 more
than the premium offer made by the
companies in purchasing the bonds.
If the money were in possession of
the city this $4,000, he declared,
would be the city's besides the pre-
MUM of s4,10O offered by the COM
pany. He declared the proposition
unbusiness-like and when the vote
was taken was the only one to vote
mo"
Two resolutions were passed
authorizing the mayor to sign con-
tracts with the WatsonFlagg Engi-
neering Company for the erection of
the municipal light plant building
and for the equipment of the plant,
the concern having been awarded the
contract as lowest bidders at the
meeting of the board last Wednesday
night.
Mayor Garretson, however, stated
this morning that he would not sign
such contracts on behalf of the city
until funds for building the plant are
available. This proviso was made In
the resolution passed by the alder
men when they awarded the con-
tracts to the Watson-Flagg firm, it
being provided that the contracts are
to be entered into when funds for
building such plant become available.
Alderman-at-large w Guy Weaver
passed on the two resolutions author
izing the mayor to sign the two con-
tracts for building the plant and for
same. The other alder
men voted in the affirmative.
City Treasurer Rhodes stated this
that he would go to New
York tomorrow to negotiate the
actual sale of the light bonds to the
pond brokers on the new terms
agreed upon at the meeting last
hight. He will then report the re-
Continued on page A.