The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-08-24
REFERRED TO A COMMITTEE
Controller Woollen's Ordinance Will Be
investigated Before Passage.
PROPOSE ion TO Exchange the Bonds Made by
the Harris 4 Go. Agency-Their Figures
Less than Bonfi Is Resolutions.

Twelve CounciImen, most of them Demo-
Gratis, were present last night, at one OF
the briefest sessions that has characterized
that BODY since 1T was organized. At
o'clock President Murphy gave the top OF
his desk three resounding smacks with the
gavel, and silence reigned supreme. Mr.
Woollen was present, wearing a travelling
cap and q smile. HIS recommendation
that Mr.. Bonfilps bond-funding PROPOSE
ton be accepted was handed to the clerk,
and, after 1t had been read, Mr.. Rassmann,
chairman the finance committee, intro
duced the ordinance, which contained
copy of the proposition, in which Mr. Bon
fill, acting as the agent of the bondholders,
agrees To collect the old bonds and ex-
change them for new thirty-year bonds
bearing per cent. interest.
The ordinance was not read, except by
title. and on motion OF Councilman Rass-
mann it was referred to the finance COM
mitsee. which will report at the next meet
ing. The Council then adjourned, not hav-
ing been In session more than live minutes.
The proposition of Mr.. BOntll was given
In all Its material points IN the Journal
yesterday morning. Mr. BOnflll agrees to
refund the bonds and save the city Si2,33S
the bond holders TO be paid premiums not
exceeding, in the aggregate, S24,9 $40.
Section / of the ordinance goes into de-
tail about the exchange of bonds, showing
the amount and number OF bonds In each
series and the interest they are drawing.
Section 2 states that the new bonds shall
date from July /, 1892. and gives the con-
trOller authority to have them prepared.
Each of the new bonds shall DO issued for
the sum of $1,000. drawing interest ut the
S24, $40 of the funds of the city TO pay the
premiums. apd Section appropriates
SAG. TO pay for having the new bonds
printed.
Mr.. Woollen has recommended the pass
age of this ordinance, but there will be
considerable opposition To it. both from the
outside and from members of the Council.
and he is receiving considerable criticism
for having surrounded mis- scheme with SO
much secrecy. Yesterday the representa-
tives of several brokerage firms Of Chicago
arrived In the city prepared to submit
propositions to conduct the refundlng OF
the bonds. but they. were at once confront
ed with an ordinance already drawn. In
itself contract with Mr.. Bonfill to do the
OF shess @ss w.
the agent of the Harris Co.
agency. who reached this city from
Chicago yesterday. In some way tue Harris
agency ascertained last week that the city
Frenzel. of the Merchants Bank, went to
Chicago. and proposition was prepared,
and would have been submitted at the
same time Mr.. Boniill submitted lis had
not the latter had the best of it owing to
his private understanding with Mr.. WOOL
len. Yesterday afternoon, however, Mr..
Mcdonald, learning from the morning
papers what was going on. sent the follow
ing proposition to Controller Woollen:
INDIANAPOLIS, Ind. Aug. %, 1892.
VIM. Wesley Woollen City Controller:
Dear Sir-The city of Indianapolis has now
outstanding the following high-rate bonds, which
mature within three and one-half years, and
which we propose refunding, viz: III
We can secure one or more or all the above Is
sues OF bonds. or any part thereof, not less than
100000 we propose that your city shall secure
on or before Jan. /, 1893, at our option, all or
part of 81 .245,5O straight thirty-year bonds,
est from said date at per cent. per an ium, pay
able semi-annually. interest and principal. pay
able In New York city. and to be delivered TO us
at par fat In New York city in exchange for old
bonds that we may secure IN equal amounts. at
par and accrued interest TO July /, 1892. fThis
exchange to be made AS of July j, 1922
In consideration of our making the above ex-
change you are to pay us a commission OF
1 LOO per cent, $23, 1905, to he paid pro
rata at time OF exchange, proportionate to
amount of bonds delivered Should we be un-
able 10 secure said bonds and carry out this
proposition on or before Jan. 1. 1893, then such
part OF this proposition not completed on said
date shall he null and void and we VIII make no
charge to the city of indianapolis for our serv-
ices or expenses on said part not completed by
said date.
Usual certified papers satisfactorily showing
legality of Donds to our attorney to be furnished
us prior to delivery and exchange OF bonds
BY refunding those issues proposed the city
of indianapolis will save in interest charges the
sum OF S43,527.l4. Respectfully submitted.
N W. HARRIS d. Co.,
per McDonaldl,
Chicago, New York and Boston.
The above proposition also included q
table showing the time the outstandIn r
bonds mature and the amount the city
would save by exchanging them for four
percent bonds. Tho gross saving in in
terest would be SCI. 31S.lo. AS is seen the
Harris 4 Co., agency proposes to collect
and exchange these bonds for s23, 7S0. 05,
while Mr.. Bonfill wants S24. $40, a difference
in favor of the Harris agency of Sl.12095
And there might be other agencies or
brokers who would submit even better
propositions. If Mr.. Woollen really wants
TO save the city interest why not accept
the best proposition offered7
Councilman Casper will oppose the ordi-
nance because it shuts out competition.
He Is not opposed to the scheme, but wants
the bonds refunded at the lowest possible
rate of interest and the least expenditure
OF money In premiums. Several of the rep
resentatives of agencies called on Council
man Rassmann yesterday and talked the
matter over with view to having such ac-
ton taken as will give them an opportuni-
ty to submit propositions. Since the city
attorney has decided that an advertisement
is not compulsory whore a mere exchange
of new bonds for the old ones is contem-
plated, thore seems no good reason why