Delaware gazette and state journal., 1897-06-17
COUNTY BONDS SOLD.

tiAsfrtU 10 itr tNs Fttsiy fHfHiefa fsuHk
Hereivrd the Contract,
liiis were openod 10 the Iievy Court
ol'ambcr On SATURDAY for the Sl50, 600
bonds Of New Castle county TO provide
for funding tho debit Of the county 40
provided by thin aot wbinh passed tho
Legislature on May 2sth, Ten thousand
dollars OF thesfund are tn he redeemed
each year, beginning December lst,
1910, until the nhtire fund is redeemed.
The bidders were required TO atate the
rate ct interest, which was not TO OK.
coed per cent.
agreed to take the entire sum and give
par interest and u premium equal to
sl03S7 per cent
S.A. Ksan OF Chicago offered TO take
4 per cent bonds averaging 20 years at
par.
Townsend. Scott g. Co. Of Baltimore
offered to take the entire amount on a
basis TO net them 3. SO per cent interest
on the bonds at q per cent.
j. u. Moore g. To. bid 1853, 600 for
the entire amount to bear 4 per cent
interest.
II. l.. Evans & Co., this city, bid
S103. 81 for the bonds ut 4 per cent,
agreed TO give sl04. l6 il the bonds were
made to pay per cent interest without
prior option of payment.
Heyl & Major of Philadelphia. bid
Sl03. 90 and accrued interest for bonds
bsaiing per cent interest," free from
all taxes, They stipulated that this
was for the entire amount and no lesser
part would be taken.
Dntlt, II Katit, ~ Dh sIolalphia for
the bonds dpe December lst, 1910. bid
slu2. 1875: 1911, sl02. %; 1912, $l0a. 33; /;
| 1913, s102.44; 1914. sl02 81.
Tho bid of r. r. Robinson g. Co.,
this city. was as followa: For the
slO0, QUO due from 1910 to 1910. inclusive,
sl03 sc: $4,000. due 1920. si07, 81 !:
$40, 900 due 1921, siOS. 90: $40, 600 due
1929, s1os. 81; $40, 600 due 1929, Sl0S. 53 /;
sl0, 600 due 1924, $l0S. 70.
Scott & Co., this city, offered to take
all por cent honds on basis Of
sl0a5l per cent, equal to sl55. 265 for
| the entiro amount.
This Equitable Guarantee and Trust
| Co. offered s155, $50 for the entire sum
to hear interest at pnr cent.
Robert l.. Forrest, through ". ].
Hayes Il Sons OF Philadelpnia, hid
sl5i, l70. 30 for tho entire sum at per
cent interest
| Farson, Leach & Co. Of New York
for bonds bearing per cent interest,
offered to give par and premium Of
a., GOO. The Security Trust and Safe
Deposit Co. offered to take the entire
bond at par. the rats Of interest TO be
3l5 per cent.
Tho Farmers Bank Of this city offered
| to take the entire issue ut the rate of
| Sl05. 33, bonds 10 bear per cent in
terest, legality To be certified 10y county
attorney. The latter provision also
appeared 10 nenrly every bid opened.
This closed the list and on motion Of
John j. Gallagher. the bids were re-
iorrei TO the finance committee of the
Levy Court,
The $50, 600 loan to fund thee ounty
debt was awarded by the Levy Court
I Tuesday afternoon to the Farmers
Bank of this city. The banks bid was
slo7, 993 and tho county will pay per
cent interest 1t Ia claimed, however, that
the bid OF the hank was not the best of
those made, and tho awarding of the
contract to the Farmers Bank has,
therefore, excited much discussion 10
financial circles. 1t is held that 10 the
last analysis there can be no doubt that
the bid OF the Security Trust and Safe
Deposit Go. OF this city was the best,
namely, to take the bonds at par and
jl2 per cent interest While Dn Its face
tha premium offered by the Farmers
Bank would seem more favorable bid
than the offer at par, yet the difference
of hall n per cent interest makes the
Security's hid worth TO the county
nearly So, 900 more thgn the Farmers
hanks. That the Security hid is the
best may be taken from the arrange
mont OF the bids as reported by the
Bond Buyer, financial paper, which
puts this bid at the head Of tho list,
aud that OF the Farmers Bank next.
The average age OF the bonds is 201a
years and the excess of interest the
county will pay by taking the Farmers
bid is $3.50. What is looked upon as q
lost opportunity to show the strength
Of the county's credit, is tbe failure to
secure 3l5 per cent loan rather than
a per cent, for the lower the rate Of
interest the better the credit. At pres
ent the county's debt has drawn ~
and 5per cent interest.
The statement attributed to mem
her of the levy Court, that while the
bid OF the Farmers Bank may not have
been the highest it ia the best, and il
was thought to be only proper to award
il the bonds. as the hank had done the
court many favors when 1t was pressed
for funds, is looked upon as going di.
ractly against tho idoa of free and open
bidding. as supposed TO be guaranteed
by advertising for bids. 1t is held
that when bids are asked for everything
Is to be done squarely and purely from
a standpoint of business, without any
faroritism whatever. On account Of
the action of the court it is possible
that bidding by financial houses may
be discouraged; for if the best bidder
is not to get the contract, IT is declared
to he useless TO bid.
The question Of the better bid as be.
tween tho Security aud Farmers ia sci
forth by Harlan G. Scott of Scott q
To. who in apeaking of the matter this
morning. said:
Unquestionahly 10 my mind the
Security Trust Co. offered the highest
prico TO tho county for the entire ISSUE
OF $50, 600 bonds, but let us examine
the data bearing on II. The count,
treasurer advertised for bids for thes,
bonds at rate of interest not exceed
ing per cent. Agreeably with thi.
public request the Farmers Bank bio
lO5.33 per cent for the bonds provided
they oarrind per cent interest and tht
Security Trust Co. offered to nay tht
county par (lO0 per cent? for the bond
bsariug 315 per cent interest. Thert
were OF course many other bids une o
which is worth while noticing later on