Final Report of the Louisiana Purchase Exposition Commission. Louisiana Purchase Exposition Commission
the director of works with persons and firms in various parts of the country who were known to be in the wrecking business. Specifications were prepared and furnished to all who desired them.
On the 10th of November bids were opened by the committee on salvage. They were of very unsatisfactory character. Most of the bidders selected single exhibit buildings or small groups of minor buildings. The highest bid for all of the exhibit buildings opened that date was $50,000. One bid of $325,000 was made for "buildings, structures, salvage of all kinds, and all property owned by the Exposition Company." On the 12th of November the salvage committee rejected all bids. During the following two weeks the salvage committee held frequent meetings. Hearings were given by officers of the exposition to all persons desiring to negotiate for salvage. By wire and by mail persons and firms who might be interested were advised that the property was being offered for sale. Proposals were invited for all physical property of the company, except the intramural cars and equipments and the general service outfit.
The salvage committee waited for proposals in response to this invitation, covering the physical property generally, until nearly the end of November. Three bids were received. The highest was $420,000; the next highest was $300,000. After careful consideration and much negotiation with the various bidders, the salvage committee proposed to the highest bidder, namely, the Chicago House Wrecking Company, which had bid $420,000, to recommend the sale of the physical property to the board of directors, with the exceptions mentioned, for $450,000. This, after some delay, was accepted by the Chicago House Wrecking Company on the 30th of November, and was reported to the board of directors on the 13th of December, and was ratified unanimously.
The records and correspondence showing the proceedings throughout are on file in the office of the secretary, and are ready for inspection and investigation.
The allegations set forth in the letter of the National
Commission as having been made to that body and the answers to
be given to such allegations are:
First. That secrecy was observed in handling the bids for the
wrecking of buildings.
Answer. It was the judgment of the salvage committee that better results could be obtained if secrecy was observed, in so far that the amounts of bids were not made public until the sale was accomplished. The wisdom of this judgment was vindicated in the amount realized for the salvage when compared with the lower bids.
Second. That the Chicago House Wrecking Company was favored from the beginning.
Answer. This is utterly false.
Third. That the exposition officials rejected higher bids than that of the Chicago House Wrecking Company, so that the latter might have further opportunity to raise its figures.
Answer. No higher bid was received either before or after the sum of $450,000 had been agreed upon to be recommended by the committee on salvage.
Fourth. That only a partial list of the property, which did not include many valuable articles, was submitted to bidders outside of the Chicago House Wrecking Company, and that a complete list was refused other bidders.
Answer. No complete list was submitted to the Chicago House Wrecking Company or to any other bidder. The Exposition Company, through the salvage committee and the executive committee, with deliberate intent refused to furnish any list purporting to be complete.
Fifth. That a written offer of $400,000 cash, and more, if lists could be secured, was ignored.
Answer. No such offer was received.
Sixth. That a bid of $450,000, half cash, was presented to the
Exposition Company after the announcement of the sale of the
salvage to the Chicago House Wrecking Company for $386,000.
Answer. No such bid of $450,000 was received; the Chicago House
Wrecking Company did not make a bid for $386,000.
Seventh. That the contract was eventually given to the Chicago
House Wrecking Company for $450,000, with contract provisions
inferior to the former $450,000 bid made by a party outside the
Chicago House Wrecking Company.
Answer. This statement is not true. There had been no bid of
$450,000 on any terms when the sale was closed. The contract
provisions were superior to any made in the bids.
Eighth. That the contract with the Chicago House Wrecking
Company does not adequately protect the Government, the city of
St. Louis, and the stockholders, the $40,000 bond being out of
all proportion to the size of the sale.
Answer. The bond of $40,000 was not taken to secure the payment of the $450,000, or any part of it. The first payment of $100,000 was made on the signing of the contract of sale. The remaining $350,000 was secured adequately by a mortgage on the property covered by the bill of sale. The $40,000 bond was required to enforce other conditions of the contract, namely, those relative to the wrecking and removal of the property under conditions of leases upon which the property stood. A part of the contract required that property be kept insured for the benefit of the Exposition Company until all payments were made. The bond covered these provisions. The Chicago House Wrecking Company made its second payment of $100,000 on February 1. The third payment will be due March 15. The company holds a mortgage on the property to secure the remaining payments, and only releases the property to the Chicago House Wrecking Company as the payments are made.
Ninth. That the sale of the salvage to the Chicago House Wrecking Company was consummated over the protests of some of the directors of the Exposition Company.
Answer. On the contrary, as the records show, the board was unanimous in approval of the contract of the sale and, as stated, there is no record anywhere of objection on the part of any director.
Tenth. That the specifications were misleading, in that one item of copper wire, valued at $650,000, was omitted; also 5,000 electric lights, 5,000 tons of iron piping, 3,500 tons of other piping, the railway system on the exposition grounds, the fire apparatus, etc., were omitted.
Answer. The first specifications, probably those referred to in this paragraph, related only to exhibit buildings. Subsequently the salvage committee informed bidders when bids were taken on all of the physical property that the intramural cars and equipments were to be excepted, and also the property of the General Service Company, which was owned by the Exposition Company. Quantities of wire had been purchased under the contracts permitting return on a percentage of the price paid. As regards the iron piping, bidders were informed of the clause in the ordinance authorizing the use of Forest Park which declared that "sewers, drains, conduits, pipes, and fixtures shall become and be the property of the city." By reference to the contract of sale to the Chicago House Wrecking Company it will be observed that the company sells "subject to whatever rights the city of St. Louis may be entitled to in certain underground pipes, sewers, and conduits in Forest Park." Some of the fire apparatus was loaned or rented to the Exposition Company, and was not owned by it. Many things used by the Exposition Company were sold to it with the privilege of return, or with a contract to return at stipulated amounts or percentages. The exposition officers and the salvage committee answered inquiries, as far as were in their power, made by bidders regarding the property, but from first to last refused to furnish an itemized list. By reference to the contract of sale it will be observed that no list is contained therein, but that the company sells and transfers "the interest, or right, or ownership in or to any and all physical property purchased, constructed, or acquired by the said Exposition Company, excepting as hereinafter mentioned."
Eleventh. That according to an estimate made by several reputable contractors the property sold was of the reasonable value of $1,955,000.
Answer. The Exposition Company has no knowledge of such estimates. If contractors did place such estimates