New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-11-12
vERMILYE AND co. GET THE BONDS
THE FIRM WILL PAY THE CITY MORE
THAN $4,000 IN PREMIUMS-SATIS-
FACTION IN WALL, STREET

Tho entire Issue OF Sl606,590 Il Of municipal
bonds the bids for which were opened on Monday
with such satisfactory results. was awarded yes
terday by the Sinking Fund Commission to Yer
milye & Co. OF No l6 Nassau-st.. whose bid was
lO7n. covering the total amount advertised for
sale vermllye Co.'S bid was for all or none
The members OF this Board-Mayor Strong. Con-
troler Fitch Recorder Con. Chamberlain McCooK
and Alderman Olcott-were unanimous In their de-
csion.
The firm will pay the city in premiums on the issue
y557g4 a. The Controllers experts have calculated
that the earning power OF the bonds In the hands
OF the buyers at the rate Mt which they were pur-
chased will be 3 Is per cent per annum. The
earning power with all premiums paid. one OF the
experts said yesterday. will not vary one one
hundredth Of per cent from 31-5 per cent The
bonds all bear 3D. per cent interest and their aver
age life Is twenty-three years. The Commissioners
decided that Vermiye Co.'S was the best aver
age bid and so directed the award
some OF the ls5 bids filed were not regarded as
bona fde by the Commissioners In relation to the
highest bids the Controller caused an investigator
TO be made and learned something OF the nnancia1
responsibility OF the bidders. THE reports made
to me-" the Controller SAID showed that {. Boa
laski. who bid 15 to lis for 100000 OF the bonds
lived in n hall bedroom at No. 81: Sixth-st. for
which he paid 81 % a week rent and was out or
eunIovment" AS 20 s. Herzberg. the Controller
s,d. .Ths bidder offered SO 0671 g for $780,
go ., ~ bonds. and gave his address care OF the
Mutual Life Insurance Company OF st. Louis; but
q nhic report from that city says that Herr
berp Is employed by ]. E. Baker. the general
agent OF the company. and has no connection with
the company itself"
Tho Controller cited several other similar cases.
n has not been unusual Of late for irresponsible
bidders to put in offers hoping to receive an award
and have some moneyed men pay bonus FOR the
same This class Of bids. II genuine. would have
Melted the city profit Of $l.429372 80. on sale OF
IA OSa 49, but the question OF good faith arose
and the Investigations were against the bidders,
their bids were cast aside
The J. Pierpont Morgan bid Of 1853 for T'OOO.0O0
could not be accepted. because 1t would make
necessary a Reimbursement Of the balance Of the
bonds and that would be bad policy, because the
CITY needs the money badly and at once.
At the request Of the Commissioners. Corporation
Counsel Scott appeared at yesterdays meeting. and
advised the Board that under the circumstances 1t
average bidders for the whole sum. with the under
standing that the successful firm should turn over
TO the highest bidders. should they come forward
bonds coming to them under such bids. Eermiiye
a Co entered into the stipulation advised by the
Corporation Counsel. - =,
Great satisfaction was felt In wall street tnat tne
awarded to vermilye Co. This Is one Of the Oldest
and most substantial financial houses In America
It's members are James A. Trowbridge. Donald
Mackay Latham Fish Freder,cK a n IA T%pn
Troybridge The bonds Will at once De ABSORBED py
the customers OF the house.