Final Report of the Louisiana Purchase Exposition Commission Part 29

Condensed statement showing estimated financial result of the exposition.

RECEIPTS.

Subscribed funds: United States Government ................................. $4,752,968.45 City of St Louis ......................................... 4,964.148.66 Individual subscriptions ................................. 4,839,867.28 -------------- $14,556,984.39 Loans: United States Government ................................. 4,600,000.00 Loan on stock subscriptions, etc. ........................ 438,000.00 -------------- 5,038,000.00 Less repaid .............................................. 5,038,000.00 -------------- Revenue: Admissions ............................................... 6,244,544.65 Concessions .............................................. 3,081,406.78 All other sources ........................................ 1,931,571.35 -------------- 11,257,522.78 -------------- 25,814,507.17

DISBURs.e.m.e.nTS.

Expenditures: Construction .............................................$16,729,755.49 Less salvage 625,680.90 -------------- 16,104,074.59 Rents of grounds and buildings ........................... 1,279,913.80 All other expenses ....................................... 7,713,307.34 Estimated liability for restoration of site .............. 250,000.00 ------------- $25,347,295.73 Surplus, subject to liability on pending suits and claims 467,211.45 -------------- 25,814,507.18

The above condensed statement has been prepared from the accounts of the company to May 3, 1905, and from an estimate of future receipts and expenditures furnished us by the president of the Exposition Company.

JONES, CAESAR, d.i.c.kINSON, WILMOT & CO.

ST. Louis, _June 12, 1905_.

APPENDIX 2.

DISPOSAL OF SALVAGE OF LOUISIANA PURCHASE EXPOSITION.

State of Missouri, _City of St. Louis_, ss:

Before me, this the 16th day of March, 1905, personally appeared H.S.

Albrecht, who, being duly sworn, on his oath says:

My name is H.S. Albrecht. I reside in St. Louis. Have lived here the past twenty-five years. I am engaged in business in St. Louis. In regard to the sale of the salvage of the Louisiana Purchase Exposition Company I herewith make the following statement:

When I saw by the papers that bids were requested for the wrecking and removal of certain exhibit buildings now on the World's Fair grounds I decided that I would make a bid on same. I submitted a bid on that part of the salvage to be disposed of as shown in the specifications prepared by Director of Works Taylor and on following buildings:

Mines and Metallurgy; Liberal Arts; Education and Social Economy; Manufactures; Electricity; Varied Industries; Machinery; Transportation; Forestry, Fish, and Game; Agricultural; Horticulture; four dairy barns, octagonal; live-stock forum; Live-Stock Congress Hall; stock barns; Steam, Gas, and Fuel Building, and cooling towers; Festival Hall; terrace of States, including pedestals and statuary; two paG.o.da restaurant buildings on Art Hill; four fire-engine houses; five toilet-room buildings; five band stands.

The time limit set for the removal of the buildings and debris was short--namely, three months--and no one could make a reasonable bid. I made my bid in the sum of only $50,000 for that reason, and accompanied same by a certified check for $25,000, as required by the Exposition Company.

The bids were to be opened at 12 o'clock noon of November 10. I, with a number of other bidders, was present in an anteroom adjoining the office of Mr. Isaac S. Taylor, director of works. The bids were not opened at the appointed hour, and we waited there for three hours and until 3 o'clock. We expected the bids to be opened in public, as is done by the United States Government and the city when they dispose of large properties. We were called into Mr. Taylor's office and were informed by President D.R. Francis that the bids would not be opened in public, but in private. I immediately arose and offered an objection to this mode of procedure, as I did not think it was the proper way to handle the matter. I told them what I thought of the whole proposition. My protest was a vigorous one. A Mr. Harris, a representative of the Chicago House Wrecking Company, immediately arose and stated that he desired to have his bid kept secret. Mr. Francis overruled my objection and sustained Mr. Harris. Mr. Francis asked the other bidders present what they desired as to the manner of handling the bids, and they all stated that the bids should be opened in public and not in private. Not only as a contractor, but as a stockholder of the Exposition Company, I demanded that the bids be opened publicly, in a straightforward manner. We were instructed to go out into the anteroom and remain until called for.

About fifteen minutes later I was recalled alone to the meeting room of the salvage committee, where President Francis questioned me in regard to the $50,000 bid, and asked whether I could remove the property in the time limit set. I informed the gentlemen that I could make my bid considerably higher if I was granted more time in which to remove the debris. President Francis asked me how much more I could bid, and I told him I could not state offhand. The conditions as to the removal of the wreckage in the specified time, namely, three months, were somewhat prohibitive, as it would be impossible to fulfill the requirements without an enormous expense. It would be well-nigh impossible to get sufficient men and teams on the work to complete the same in the specified time. President Francis stated to me that it was probable that all the bids would be rejected. I requested him to ask for new bids, which were to be opened in public, or that the property be sold at public auction. I saw by the newspapers a few days later that all bids had been rejected, and my check for $25,000 was returned to me. I later saw by the papers that the Exposition Company contemplated forming a company among the directors and wreck the buildings themselves and dispose of the salvage. Later on I saw in the papers that the Chicago House Wrecking Company was figuring to buy all the World's Fair property, and was about to close a deal for the purchase of the salvage in the sum of $386,000.

No further information as to the sale of the salvage was ever furnished me, nor was any notice given me that further or additional bids would be received.

I had never at any time been furnished a list of the property for sale, and made my bid on the buildings as shown by the specifications prepared by Mr. Taylor, director of works. I requested a list of the property for sale, but was never able to get one.

As soon as I heard that the property of the exposition was to be sold to the Chicago House Wrecking Company for the sum of $386,000 I wrote a letter to President Francis as follows:

DECEMBER 5, 1905.

GENTLEMEN: Noticing in the daily papers that you will sell the entire property owned by the Louisiana Purchase Exposition, including railway tracks, exhibit and other buildings, fencing, furniture, wiring, lamps, piping, plumbing, machinery, etc.--in fact, everything owned by the company. If this is the fact we can pay you about $400,000 and perhaps more. Will you kindly furnish us a complete list of everything that you have for sale and specified time of removal, so we can give you an intelligent bid or proposition?

Very respectfully, SCHOELLHORN-ALBRECHT REAL ESTATE CO., Per H.S. ALBRECHT, _President_.

President D.R. FRANCIS and BOARD OF DIRECTORS ON SALVAGE, _Louisiana Purchase Exposition, St. Louis._

I failed to receive a reply to the above letter or to receive a list of the property to be sold, and was not notified that further bids would be received therefor. As far as I know, none of the former bidders, nor any one else, for that matter, were given the slightest opportunity to bid on the whole property, except the Chicago House Wrecking Company.

There seemed to be a disposition on the part of the salvage committee to observe the greatest secrecy in procuring the bids and the awarding of the contract. The property was not properly advertised and lists were not furnished to bidders, as is customary in public sales, where large amounts of valuable property is to be sold.

From the contract between the Exposition Company and the Chicago House Wrecking Company, now a matter of record here, I have noticed the nature of the material and property sold to the Chicago House Wrecking Company, and had I been furnished a list of that property I would have bid $750,000, all cash, and would have made a great profit on it at that price. If the property had been properly listed and widely advertised, much higher bids would have been made. If the property had been properly advertised and had been sold at public auction, in detail, I am safe in saying that the Exposition Company would have realized more than $1,000,000 out of the salvage. In my opinion the property delivered to the Chicago House Wrecking Company was of the market value of fully $1,500,000.

H.S. ALBRECHT.

Subscribed and sworn to before me this 16th day of March, 1905. My commission expires on the 22d day of July, 1909.

[SEAL.] IRA C. MONEY, _Notary Public, City of St. Louis, Mo._

STATE OF MISSOURI, _City of St. Louis, ss:_

Before me, this the 16th day of March, 1905, personally appeared Charles L. McDonald, who, being duly sworn, on his oath says:

My name is Charles L. McDonald. I reside in the city of St. Louis. Am connected with the St. Louis Steam Forge and Iron works. I saw by the St. Louis Globe-Democrat of October 17, 1904, that Mr. Isaac S. Taylor, director of works of the Louisiana Purchase Exposition, had requested sealed proposals addressed to the "Committee on Salvage and Sale of Buildings," for the wrecking and removal of certain exhibit buildings now on the World's Fair grounds, and that specifications and instructions for the above-mentioned work and drawings and specifications of the buildings to be wrecked could be seen at the office of Mr. Taylor. All bids were to be in Mr. Taylor's office by 12 o'clock noon of Thursday, November 10, 1904.

The specifications and instructions as prepared by Mr. Taylor for the wrecking of the buildings, and for which sealed proposals were requested, only applied to the following buildings: Mines and Metallurgy; Liberal Arts; Education and Social Economy; Manufactures; Electricity; Varied Industries; Machinery; Transportation; Forestry, Fish, and Game; Agriculture; Horticulture; four dairy barns, octagonal; live stock forum; Live Stock Congress Hall; stock barns; steam, gas, and fuel buildings and cooling towers; Festival Hall; terrace of States, including pedestals and statuary; two paG.o.da restaurant buildings on Art Hill; four fire-engine houses; five toilet-room buildings; five band stands; and excluded, or rather did not include, all electrical wiring, piping, plumbing, roadmaking machinery, fire hose in the various buildings, two hospitals complete, Jefferson Guards' uniforms and accouterments, railroad tracks in the various buildings, the Intramural Railway, which included all the equipment (except the cars), hothouses, horses, wagons, and vehicles of all kinds, and many other valuable items.

I submitted a bid on one of the buildings only. However, I was a.s.sociated with Mr. Albrecht and others when he submitted a bid on all the buildings as shown by the printed list, and was also concerned with him in his proposition of December 5, wherein he offered $400,000 cash for the property, and more if a list of all the property could be secured.

The conditions embodied in the specifications and contract, with reference to the time limit for the removal of all the debris from day to day as the work progressed were too exacting, in that they did not allow sufficient time, and if the same were strictly enforced by Director of Works Taylor would materially add to the expense of the contractor. The time was too short for the amount of work to be done.

On November 10, at the hour called for the opening of the bids, I was present and appeared with other bidders before the committee on salvage.

I, with a number of other bidders, waited until after 3 o'clock for the committee to get together and open the bids, and was very much surprised when President Francis announced that all bids would be opened in secret by the committee. This procedure was not in accordance with the custom of the Government and city in the handling of its property when same is for sale under bids. Mr. Albrecht objected to the bids being opened in secret session and demanded that they be opened before the bidders.

President Francis asked me what I had to say about the way in which the bids were to be handled, and I answered that I could do nothing more than emphasize the protests of Mr. Albrecht.