Camden Courier-Post – February 26, 1936
Applicants With Programs to Be Considered by Board Today
COMMISSIONERS AGREE ON KOBUS SUGGESTION
Chapter 60 and 77 Author Overruled in Plea to Disregard Proposal
Camden’s city commissioners yesterday agreed to select a paid financial adviser to guide the city out of its financial morass.
They said they expect to make the selection today.
A special gathering of the commissioners in Mayor Frederick von Nieda‘s offices at noon today was arranged to hear applications of candidates for the job.
No candidate will be considered unless he has a plan to submit that looks attractive to the commissioners they said.
Decision to select the paid adviser came near the end of a hectic two and one-half hour conference of the commissioners with their citizens’ advisory committee, members of the Freeholders budget committee, various bond brokers, and bankers and attorneys for the city and the bond dealers.
Proposed by Mrs. Kobus
The commissioners decided to engage the adviser against the recommendation and despite an eloquent plea of their bond attorney-L. Arnold Frye, of Hawkins, Delafield and Longfellow, New York attorneys.
It was at the suggestion of Commissioner Mary W. Kobus that the decision to bring in paid help was taken.
The action was taken under such a way as to leave at least one bond house’s representatives under the impression the commission is actually, though not legally, committed to accepting whatever plan their paid counselor may suggest.
His questions on this line, however, brought no definite answer.
“Oh. we’ll agree,” Mrs. Kobus said. “I think by the time we select the man we will select the plan,” Commissioner Harold W. Bennett, director of revenue and finance, said.
Beyond that, the commissioners did not commit themselves.
Bennett, however, announced that the adviser’s tenure will be “for whatever period we decide to engage him.”
Names Confidential
Commissioner George E. Brunner suggested that the advisory committee submit the names of three prospects for the adviser’s job and that committee’s sub-committee on finance withdrew and returned to offer two names. They explained they could not suggest more than two.
The names were held confidential and no one knowing them would reveal their identity ..
There was some speculation as to whether they were Melbourne F. Middleton, Jr., Philadelphia bond broker and former city director of revenue and finance, and Norman S. Tabor, noted New York adviser on municipal fiscal affairs.
Fall to Make Pick
The commissioners, as soon as they received the two names in secret, withdrew into the mayor’s private office for ten minutes to discuss the suggested helpers, but returned to announce that all applicants for the job will be heard at noon today.
This was accepted as tacit admission that no final agreement was reached on either name suggested.
Bennett announced:
“We are going to pick the man on a basis of his helpfulness to Camden, I want to say now that we will not necessarily select the man who offers to help us at the lowest cost.
“We want those applicants for the position who appear tomorrow to have a definite idea of what plan they expect the city to follow if they are engaged.
“Of course, we do not expect any minute detailed plan from any man not already acquainted with the situation, but we want it to be definite enough to enable us to know whether we will follow it.
“We want to keep the cost as low as possible, and we advise now that the cost of this help or advice must be low, but we will not pick the adviser on a cost basis purely.
‘No Private Talks’
“We will make no commitments in advance. We will talk to no applicant until the time comes tomorrow. My conception of how we will select the adviser is this:
“Ability will come first. Then contacts, experience, the cost to the city and, of course, the acceptability of the plan offered.”
The conference was called to discuss proposed refunding plans for Camden city, with most of the talk centering on the controversy over Chapter 60 as a refinancing basis.
Mrs. Kobus suggested appointment of the financial adviser at a meeting of the city commission to be held immediately.
“I have thought similarly during the last few days,” said Bennett.” I realize it would be a big expense, but the City is reaching a crisis and it might be money well spent.”
Brunner asked the advisory committee to submit three names for appointment as an adviser. The committee suggested two names which were not revealed.
Frye, in requesting the commission not to employ an adviser, revealed himself the principal author of New Jersey’s two refunding or bond issuing acts around which the commissions’ difference of opinion as to method has revolved — Chapters 60 and 77.
“You can finance your indebtedness entire, Frye said, “under Chapter 77, or partly under Chapter 60 and partly under 77. I personally have no preference, as the principal author of both.
Frye Plan Refused
“As to your tax rate, set what you can set and what the taxpayers can stand. Don’t you think you could get together and settled this among yourselves? Don’t you think that would be better?”
Bennett passed off Fry’s suggestion thus:
“No, Mr. Frye, I think it can best be settled by use of an adviser. I am anxious to settle it quickly. We have been unable to agree thus far and I am on the uneasy seat for Camden faces a crisis and I want to get it past.”
Frye’s suggestion came after all of the bond brokers present, except Middleton, had advised the city to use the stringent budget, making restrictions of Chapter 60.
James W. Burnison, chairman of the citizens’ advisory committee, reiterated that group’s objections to Chapter 50, saying the same guarantees can be provided for bondholders under 77, without putting the city under such rigid state supervision for so long a period.
Every person present was invited to speak. Most of the freeholders viewed the matter as a city and not a county problem, but promised cooperation.
Burnison, Carl R. Evered, A. Lincoln Michener and James V. Moran form the sub-committee which selected the two names submitted to the commissioners for consideration as fiscal adviser.
The meeting started as a closed session, but after 25 minutes behind closed doors in the mayor’s office, Evered came to the door and admitted reporters.
The reporters, however, were given to understand that the only statements they were to use were those from Burnison, chairman of the committee; James V. Moran, a member, or Evered, and from other speakers only with their permission.
Attending were the five city commissioners, William H. Heiser, chairman of the Board of Freeholders’ budget committee; Freeholders James S. Caskey, Maurice Bart, William Myers, and James W. Wood; George D. Rothermel, assistant county solicitor; City Comptroller Sidney P. McCord; Meyer Sakin and John R. Di Mona, assistant city solicitors; Burnison, Evered, Moran, and Michener, of the Citizens’ Advisory Committee; E. Howard Broome, deputy director of finance; Middleton, John T. Trimble, counsel for Middleton; three representatives of Hawkins, Delafield & Longfellow, New York including Frye, Henry Russell and Alfred Gregory; Walter Shuman, representing Rollins & Sons, of Philadelphia and New York; C. C. Collings, of the C. C. Collings Company, Philadelphia; Russell McInes, representing Lehman Brothers, New York; J. M. G. Brown and Samuel S. Blackman, representing Analyses, Inc., Philadelphia, and Leon C. Guest and Herbert Glucksman, Camden bond brokers.
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