The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-08-25
water Works Bonds.

Water Works Bonds.
We have already alluded to the sale
Of our Water Works Bonds, at eighty
i've cents on the dollar, and admitted
that, uader the circumstances, it would
have to be regarded as a good one.
We have done more. We have COM
plimented Mr.. Isaac Keen for the
ability he seems to have displayed In
selling the bonds at so high figure
as eighty-fve cents. But nothing
more clearly demonstrates the folly
which has characterized the financial
operations of the present City Council
than these saae circumstances, !"
which force Water Works Bonds
down to eighty. five cents, and COM
pei our people to regard even that
price as better than they had any
reason to expect. Water Works
Bonds are very generally regarded
as a kind of gilt edged security,
and are sought after with great
eagerness by corporations and indi
vidualS seeking permanent invest
mehts for surplus funds. These bonds.
in addition to the general credit of
the es.issuing them, are still fur
Their strengthened By pledging the
revenues of the Water Works they
represent, as security for the prompt
payment of interest and principal as
they become due. Such, we believe,
is the character of the Evansville
Water Works Bonds. The revenue
of the works. after keeping up the
necessary repairs, are pledged for the
payment of the interest as it aecrues,
and also to constitute sinking fund
for the prompt payment of the prin-
cipal when it becomes due.
It was in view Of this fact, no
doubt. that Mr.. Van Ripper SO conf
IDENTIFY asserted that the bonds would
not..be sold for IS. or even 81. cents
on the dollar. He was aware, We
presume, that Covington, city of no
commercial Importance, had dis
posed Of her water works bonds at
niTety-Jfge cents on the dollar. aud very
correctly concluded that Evansville,
with her rapid increase ina popula-
ton and growth in wealth, ought not
to be compelled to sell the same kind
Of bonds for less than ninety cents.
But. alas for the tax payers, the cred
it of the city has been SO wretchedly
mismanaged that when the bonds
were placed upon the market, they
could only be sold for eighty-fve
cents, fifteen cents less than the Cow
ington bonds have been sold for. as
we learn from the August number of
the Bankers Magazine, a standard
financial authority. We quote para
graph on this point:
KENrUCKY.-We learn that the First Ma
tionaI Bank of Cov1ngton has sold all the
Covington Water Works bonds, amor1rt
ing TO $500. 900, to Boston capitalists at par.
The First National purchased these bonds
at ninety-five cents, and has consequently
made the handsome sum of $4,000 by the
Observation-Disclosures Magazine. August,
1870.
Were any other evidence wanting
to convince the most incredulous that
the finances Of our city have been
badly managed, that bonds of this de-
scription have to be sold at so much
lower rates, than similar bonds of
other cities, it will be sufficient to
quote the terms upon which the st.
Louis Water Works Bonds are being
disposed of. We quote from the cir
cular of Samuel Gaylord & Co., Bank
ers, of st. Louis:
Having accepted the agency for the sale
Of the last issue of $4,000 st. LOUIS Water
Bonds, We take pleasure In offering them
to capitalists and investors as a safe and
profitable investment. These bonds are
dated June 18th, 1870, and are due in TWEEN
" years from date; they bear interest at
the rate Of six per cent. per annum, paya-
bic semi-annually, June and December.
The principal and interest is payable in
coin. This is good chance for holders of
government bonds to change their invest
ment; bearing the same rate OF interest as
governments, and selling at about sixteen
Per cent. less; they are equally secure, the
payment betog guaranteed not only by
faith OF the city, but by solemn pledge of
revenue from the Water WORKS, which is
rapidly increasing. The advantages pre-
seDted may be briefly stated, as follows:
$500 in government bonds at l21<, bearing
$3.50 interest, can be exchanged for "a. 500 in
Water Bonds, bearing $500 interest per an.
mum. or gain OF more than one per cent.
In usance, and 81, 900 in gold at maturity.
a large portion OF them has already been
taken by banks, saying institutions and
insurance companies, as an investment OF
surplus funds. We offer these bonds at s5
cents on the dollar for o limited time.
Parties can order by telegraph at our ex-
pense.
IL seems strange. and certainly is
most discouraging. to know that st.
Louis sac per cent. Water Works
bonds are going off st ninety. JiUe cents,
while Evansville Water w erks bonds,
bearing seven and tsree-tesat7s Der. cent.
interest, have to be sold for eiohtay. foe |
cents ca the dollar. The fnancieripV |
that adds from City TO one HUNDRED !