The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-31
CITY BONDS AT HIGH FIGURES.
THE SINKING FUND COMMISSION
FINDS PRICES RATHER STEEP.

The Commission Has Not Bought the
$4,000 OF Bonds of the Issue of 1888
as Required by Law, because Ii
Considers the Figures AT which
the Bonds Are Held as Exorbitant.
The High Price said TO BE Due to
Spectators Who Have Control of
the BOnds-The Council May Au-
thOrize the Commission TO Evade
the Law Until Bonds Are Onered at
More Reasonable Figures.
The sinking fund commission and the
finance committee of the city council
held a conference yesterday afternoon
for the purpose of discussing the prices
of bonds and questions relating to the
purchase Of bonds by the commission.
The prospect is that for the first time
since its organization the commission
viii close the year without purchasing
the fun quota of bonds allowed by law.
The commission is allowed $4,000 for
sinking fund annually OF this amount,
$500 is required to be expended in the
purchase of bonds of 1888, of which there
are only 100000 extaut. This the COM
mission has been unable to do for the
reason that the bonds are held so high
by the owners that it does not feel war
ranted in purchasing them at the prices
asked.
The available bonds are said to be in
the hands of spectators who will not
sell at anything like what the commits
sion feels warranted in paying. The high
est price yet paid by the commissioners
for the bonds is 100. The bonds bear 5
per cent interest, payable quarterly.
The conference lasted for some time
Mayor Myers was seen afterwards and
stated that some action will probably be
taken by council at its meeting to-mor-
row night to enable the commission to
invest the money in some other direc-
ton, to be used in the payment of the
bonds whenever, in its judgment, they
can be secured at reasonable price.
1T is unfortunate said Mayor Myers
that when the contract between the
city and the bondholders was entered into
no option should have been allowed the
sinking fund commission. By the terms
of the contract the city is required to
eXpend a certain sum per annum in the
purchase of the bonds of each class with
out regard to what price may be demand
ed. II was never intended that the city
should pay above par for these bonds
The bonds of 1879 which were assumed
by the city on account of it's Endorsement
of the Atlantic and Gulf railway bonds
now bring 100, and this a 80 year bond
with an issue of 100000. When this
contract was entered into by the city
the bonds We're only quoted at So, and no
one thought they would ever go to par
If the representative of the city who
made the contract had been far sighted
enough to provide for the purchase of
the bonds at not above par giving the
sinking fund commission the option to
invest the annual appropriation for the
sinking fund, should it see fit to do so,
and to purchase bonds at their option, the
city would have been saved a great deal
of money"
has a larger issue of bonds than any
other city in the state in proportion
to her taxable wealth, and yet our bonds
are quoted higher than those of any other
city. The investors seem to be very con
fdent in our ability to pay"
one reason, no doubt, why the sinking
fund commission finds it so difficult TO
secure bonds is that investors are un-
willing to change their investments at
present on account of the unsettled con
ditions of affairs generally in the finan-
cial world, when there is a general ten
dency to lower valuations and 5 per
cent. city bond with the interest paya-
BILE quarterly as regularly as clock work,
is preferable to almost any other invest
ment at present