Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-04-15
WOULD QUIT CITY
BEFORE BUSINESS,
MAYOR DECLARES
Smith Says He Would Not
Leave Bonding
Concern
RESIGNED PRESIDENCY


Mayor Thomas b. Smith has announced
that rather than relinduIsh his interest
in the bonding business he will resign as
Mayor Of Philadelphia.
The Mayor made that declaration after
his attention was directed to the action
Of the New York Legislature in forcing
the retirement Of Public Service Commits
eoner Mccall, who was found to own
stock In gas company. the business of
which came under the regulation of the
commission. The Mayor was asked
whether or not he was In the same posi-
tion, since contractors doing business with
the city and city employees are bonded
TO the city against loss or liability through
the Smith agency for big bonding con-
Germs, and the law distinctly states that
no member of any department of the civil
government "shall be in any way inter-
ested in such CmunicipaD contracts directly
or Indirectly and fixes loss of office as
penalty for violation.
III the Legislature of Pennsylvania
should take such action as to declare
unlawful my holding the office of Mayor
and retaining my stock In the Smith Com
pany." said the Mayor, II would resign
as Mayor first. 1t is true that | own
the controlling stock i'm the Thomas B.
Smith Company, which 1 organized and In
which my interest remains intact. When
was nominated for the Mayoralty I
resigned as president of my company but
/ don't see why should quit as stock
holder"
The Mayor was asked to explain his
statement published in an afternoon paper
that he had counseled members OF his
department to arrange for their bonds
with any company except the National
Surety Company, when, as a matter OF
fact. eight of the twelve bonded heads of
departments actually patronized the COM
pf 40 being
largest beneficiary He said
ONLY TO A FEW
THAT is because 1 only said that 20
n few of the directors"
Then is II to be understood that you
80 advised only four of the twelve Off
cials?"
II don't know how many I spoke TO.
They came to me and asked me what
they should do"
Mr. Smith was questioned upon report
that just prior to- his assumption of Of
flee four-year agreements were entered
Into between the Thomas B. Smith Com
pany and several firms doing large city
contracting businesses. He denied this
and said he never heard of four-year con-
tracts or agreements for contract bonds
Then he vouchsafed the informatlon
Years ago long before L thought of
becoming Mayor or even Postmaster, we
signed up permanent indemnity bonds
with Jim McNichol and Ed Ware. But
that was simply for the sake Of convent
ence and didn't prevent them from going
anywhere for bonds at any time"
''welI. Mr.. Mayor" II was asked. ''dO
you regard II as strictly in conformity
with tho spirit. II not the letter. of the
law, That yon should be the chief bene-
iciary of a corporation engaged In bond
Ing city contractors and city employees
while you are Mayor of the cIty?''
..a..U.. Z l.. Nl.aa
did not, would not be doing it." And
then he added, with giggle, '1t's q good
thing TO do" 49,
= The Mayor complained that newspa-
pers were d ing his company an jnius-
fice when IL exposed the fact that the
concern enjoy almost half of the patron
age of city Contractors and municipal em-
ployes, and failed to state that the COM
pany had been In the local field longer
than any other and that its capital stock
was greater T. IN that of any competitor
Then It was al.xed:
'1s that the reason the Philadelphia
Electric Company transferred it's patron
age from the Fidelity and Deposit Com
pany of Maryland and gave you the light
ing contract bond in December just be-
fore you became Mayor?"
''Oh, no." the Mayor said. That bond
is too big for any one company, anyhow.
and we have done business with the Elec-
tric Company for many years"
But you did not get the lighting con-
tract bond until last December. did you?"
"Oh. yes" he said. I'VE have had II for
= long time We have had part of IT,
because there isn't a company in the busi-
ness strong enough TO take II all"
"Neyertheless, the Thomas B. Smith
Company got the commission on all OF IL
this year. regardless of what companies
were included in the reinsurance"
Yes, that is true. But We have had
the lighting contract bond long before
this year"
''Then every other person who knows
anything about the matter Is mistaken,
for they say that you did not have 1t for
At least five years previously"
But the Mayor was insistent He was
sure his company wrote the lighting con-
tract bond not later than three or four
years ago.
The Mayor gave a statement to an aft
ernoon newspaper yesterday. in which he
announced his intention of refusing to
permit an examination Of the bond records
because he did not propose TO help rot
ten newspapers obtain information with
which 10 make personal attacks upon
him The statement was concluded with
this declaration:
II am a man OF high ideals. I will not
DO wrong myself and I will not permit
anybody under me to do wrong"
During the interview the Mayor said
the newspapers were perfectly right In
saying that the Thomas b. Smith Com
pany enjoyed the great bulk of the bond
ing business at City Hall, and remarked:
''Were going 70 advertise IL. Wait until
sou see. We're going 70 put an ad in the
papers. It's a big thing for the bust
ness
True to his word, 1t was later dis
covered the Mayors company sent TO the
newspapers a display advertisement for
publication In today's editions. "thanking"
the PUBLIC LEDGER and other newspapers
for PARTICLES telling Of the success OF the
Thomas b. Smith Company" and stating
that from time TO time we may spend
= few dollars I'm Advertisements calling
attention that similar articles are in
the uapers whenever they happen TO ap-
pear
In Justice 70 Mayor Smith It must be
said That this discriminating rate has been
~ force for years under all administra-
lions. and that most of the employees who
pay Il are beyond the reach OF the Mayors
ofiice. being attached 70 the Offices Of the
Receiver OF Taxes. Recorder OF Deeds.
Register OF Wills and city Treasurer. the
neads Of which are elected By the people.
su..-..