Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-24
CITY CREDIT PLOT
EXPOSED BY MAYOR
Hidden influences and Anony-
nous Letter Have No Effect on
Most of Bidders on Loan
THREE MAKE WITHDRAWALS

A plot to "hamstring" the munci-
pal administration ny lnjuring the city's
credit through the circulation Of an
ANONYMOUS letter was exposed today by
Mayor Moore.
The plot was calculated to frirhtcn
successful bidders for the S5,3lO.I00
block Of the recent 81 600 900 city bond
issue for which bids were opened De
CCmhcr 1G.
The consNirators success would have
resulted In the citv's inability to nay
its Legitimate obligations for certain
work done this wear and might have
seriously affected tho floating Of other
city loans in the near future.
Circuation of an ANONYMOUS letter
70 bidders for the SI.3lO.jO raising
some question about tho need for further
legal investigation uf tho bond issue,
coupled with rumors that had been in
circulation prior to tn" appearance of
the anonymous communication. were
the means employed hy the hidden in
fucnCcS that sought 10 persuade sue
Cessful bidders to withdraw their Of
fPrS and leave tho city unable To bOr-
row the amount for which those bid
GC1s subscribed.
Il was with great reluctance, the
Mayor said. that he felt called
upon to present the situation. 1t was
only after he had been convinced that
the time limit in which the bidders hail
TO max" their payments had expired,
and failure Of tho plot was demonstrated
by the confidence the bidders had
showed in the Citys credit. that the
Mayor consented to discuss the subject.
That time limit ended at , o'clock
yesterday afternoon In the face Of the
anonymous and undcrhand attack, the
Mayor explained that 81 100, 800 worth
Of the bonds had been taken over by the
bidders, and in only three instances
were checks returned to bidders permit
ting them to withdraw their bids.
Three Bidders Withdraw
Those three and the total of their
respective bids arc: Corn Exchange Ma
tiOnaI Bank, 81 .OOO. 900: Commercial
Trust Co., 500 600. and Brown,
Brooks, Stokes & Co.. $4,000
II want to say" said the Mayor.
THAT the bidders who were in posses
sion Of the rumOrS and who received
copies Of the anonymous CommuniCa-
tion. and who paid their subscriptions
were not shaken in tho least by the
underhand TttaCk. The whole matter
Is being made the subject of an in.
NcstIgauon. We have not yet been able
TO trace the origin Of the rumOr or the
y
tack failed, and il is probably well that
the public should be informed as to what
took place
Explaining the attempts made 70 scare
of bidCrS for the loan opened on De-
cember 16. the Mayor said that fifteen
minutes before the bids were opened a
group Of bankers called on him in his
office. The Mayor said he would not
disclose names.
t,1, 4 =
on the loan, but felt there should be
some further legal advice. ! told them
the city solicitor had passed on the legal
questions. They told me il had been the
custom in the past TO have outside legal
opinion, and said they would like to
have the opinion Of John &. johnson.
] told them that Mr. Johnson waS dead.
They said they knew that. but they
thought thor" should be- other outside
advice. told them it was very strange
they should wait for that late day to
consider the question. when the bids had
been advertised and they had every Op-
portunty to seek any legal advice they
desired. told them | was about to
open the bids and they withdrew.
The public is In possession Of what
took Dar" when the bids were opened.
We found twenty five bidders Right
OF toy Of this began t. ct telephone
messages from bankers offering TO take
w the balance Of til" loan that had not
been subscribed for. Of course, this
could not b" done, hut it was evidence
ii Il" ragorncss II financial interests to
TAX up the bonds.
Mayor Sees Bankers
1t wasn't long before ! 81 t".T
rhou" message from on" ot th" bidders
that rumors were going around q""s