The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-30
Alfred Tobin of the Hibernia
Bank Is Busy in Wall
Street.
WANTS AT LEAST A MILLION.
The Bank Refused to Enter Any
Syndicate for Manipulation of
United States Bonds.

San Francisco is TO get its share of the
new issue of United States bonds-pro-
vided the Wall-street syndicate does not
raise the premium or secure the control of
the whole issue. AT the present time
fnanciers are gathered in New York, all
imbued with the one common desire to
buy bonds from Uncle Sam, and for that
reason financial circles are deeply inter
ested in whatever transpires in connection
with the gigantic deal.
The Hibernia Bank wants to invest
million or more in the new bonds, al
though its last dividend is just the same
as the interest to be derived from the Gov
eminent. a week ago Alfred Tobin,
attorney for the Hibernia Bank, went to
New York TO miDgle among the money
dealers. He arrived there Monday, and
has since been making quiet investiga-
ton of the situation In Wall street. His
mission is to secure United States bonds
of the new issue, and TO do so at the best
terms possible-that Is, TO buy from the
Government without having to pay out
heavy premium.
James r. Kelly, president of the bank,
said yesterday that Mr. Tobin would be
guided by the board of directors in his &C
tons.
1.-The understanding at present IS that
q premium of Is per cent will be charged
for the bonds said Mr.. Kelly. "At that
rate the interest would be not more than
about 1-16 per cent. This IS very
small return, it is true, but United States
bonds are always readily converted into
cash. In case of any unusual demand a
bank with $1,000 depositors, as we have, it
would be necessary to control several mil
lion dollars without delay. Now, if cash
in that amount were kept in the vaults we
should have to pay the taxes OF 2.25 per
cent upon so much idle capital, whereas if
invested in United States bonds it would
be exempt from taxation. These are
points which we consider, as a matter of
course, in making investments in Govern
ment bonds"
Then how can you pay per CENT?
II am not certain that we will pay that
for this half year. The dividend of t per
cent TO depositors recently declared was
upon deposits up to January 1, 1886. No
one can say what the dividends will be for
the ensuing six months, for who can tell
what the tax levy will be? Taxes may
be lower this year, but there is no appar-
ent reason now why they should be. So
II taxes remain the same l have no doubt
but that interest on savings banks depos-
its will be still lower than for the last
term. We really did not earn per cent
all round, although that was our dividend.
The possibility is that interest will be
lower III future"
1T has been stated that the Hibernia
Bank, through Alfred Tobin, was negotiat-
ing to enter the bond syndicate"
There is no truth in that" Mr.. Kelly
replied. I'VE are not uniting with any
body to manipulate United Stptes bonds
Mr.. Tobin is doing his business alone and
making inquiries as to what premium he
must pay for the bonds. We will likely
buy 81 600, COO in bonds if we can get them
at a premium of 10 per cent or less; and if
much better terms were made we might
buy more.
"These bonds are issued at per cent.
Now, if Congress was patriotic and de-
clared an issue at per cent the President
could sell 81 600 600, 900 of bonds in the
United States as readily as $50, 100000 al 4
per cent. As it is the bonds are worth
more than their face value, though they
are ultimately redeemed only at that
value.
1--WE have not yet heard from Mr.. Tobin,
but l can assure you he has nothing to do
with the syndicate. Mr.. Kelly, The son of
Eugene Kelly, suggested our uniting with
him in buying bonds, and he was DESTROYS
of placing some of the bonds here in San
Francisco. We declined, however, so
even in this particular there could be no
syndicate"