Omaha daily bee., 1898-08-03
SALE FOR REFUNDING BONDS
City Treasurer Reed Thinks the Issue Will
Fetch Good Figures,
MANY INQUIRIES ALREADY RECEIVED
Dealers I'm Securities Posting Them
selves as to the Dnte md Com
ditions of the Bonds-FulI
Text of the Resolution.
MANY INQUIRIES ALREADY RECEIVED

City Treasurer Reed is of the opinion that
there will be no difficulty in selling the $780,
900 refunding bonds ordered issued by the
city council at it's meeting Monday night.
He has already received a large number of
inquiries from prospective purchasers, and
expects that the bonds will fetch a reason
ably good premium. Inquiries have been re-
ceived from bankers and brokers in Cleve-
land, Cincinnati, Boston, New York, Toledo
and Chicago, and Treasurer Reed is prepar-
ing a circular asking for bids for the bonds
which he will mail to them in the course
of a few days.
Judging from the letters received, the
writer's are apparently anxious to purchase
, the bonds, and the indications are that
there is healthy appetite for such securi-
ties in the market at present. Treasurer
Reed believes the bonds carrying Az per
cent interest will fetch a better premium
than II they were issued at 4 per cent. The
latter he says are somewhat a drug on the
market, while there is an active demand for
those at the higher rate of interest.
The resolutions passed by the city coun-
Gil authorizing the issue and providing for
the levying of a tax to meet the interest
and create a sinking fund to redeem the
DonuS is as 10llOWS:
Whereas, The City of Council Bluffs under
date October l, 1873, legally issued its reg
ular city bonds in the sum if $40. 900. bear
ing interest at Z per cent per annum, paya-
BILE semf-annually, said bonds being PAYABLE
twenty years from date; and.
Whereas, All of said bonds will become
due and payable on the LIST day of October,
1898; and,
Whereas. There will be only $40, 900 on
said list day of October in the bond fund
to pay said bonds coming due as aforesaid
and there will remain $50, 900 Of said bonds
unprovided for on said date; and.
Whereas. Said bonds on said list day Of
October, 1898, will be subject to redemp-
ton under the terms thereof and are valid
and outstanding obligations of said city and
can be redeemed by refunding bonds at q
less rate of interest to the advantage of
the City of Council Bluffs, Iowa; now, there
fore, be it
Resolved, by the city council of the City
] of Council Bluffs, Iowa, That there are
I hereby authorized and directed to be issued
by and in behalf of said city refunding
bonds to the amount Of $50, 900, in denom-
nations of $500 each, payable on the LIST
day of October, 1918, but redeemable at the
! option of said city at any time after Octo-
Der l, 1905. Said bonds shall bear interest
at the rate of Az per cent per annum
payable semi-annually on the list day of
April and October of each year until paid,
which interest shall be evidenced by cou-
pons attached to said bonds. Both interest
and principal shall be made payable at the
National Park bank in the city and state of
New York. Be it further
Resolved, That when said bonds have
been issued as hereinbefore provided. they
shall be delivered to w. B. Reed, city treas
urer, who is hereby and herein constituted
the trustee for the use and benefit of said
city of Council Bluffs without compensa-
ton other than his salary as city treasurer,
with authority tn sell said bonds &C D~O-
vi>d by law and use the proceeds thereof
or so much as may be necessary to pay off
and cancel the $50. 900 of regular city bonds
which fall due on the 1t day of October,
1898. If there remain any surplus after
paying off said bonds as aforesaid, the same
shall be turned over into the city treasury
of said city by said w. B. Reed. trustee,
but no part of said proceeds shall be turned
into the city treasury or used for any pur-
pose whatsoever until said $50, 600 of out
standing regular bonds have been fully
paid and Cancelled by said w. b. Reed, trus-
tee as aforesaid.
Resolved, also, That there is hereby au.
thorized and directed to be levied and col
lected from year to year Il sufficient an
nual tax to meet the payment of the interest
on said bonds as the same becomes due
and to provide a sinking fund for the pay
ment of the principal thereof at or before
maturity. Whenever the amount so col
leCted and not required for the payment o.
the interest maturing on said bonds be,
I fore the next levy and collection of taxes
is sufficient to redeem one or more of sale
bonds, which may be subject to redemp'
ton, the treasurer of said city chall notify
the owners or holders of said bonds by
publication in some newspaper Of genera
circulation in the city of Council Bluffs il
the order of their issuance, beginning a
the lowest or first number, that he is pre-,
pared to pay the same with accrued interes
thereon. If the said bonds in the said no
tice mentioned are not presented within
thirty days from the date of said notice
the interest thereon after such thirty days
shall cease and the amount due thereon
set aside for their payment whenever pre-
scented.
The annual interest on this issue of bonds
will amount to. 81, $50, the tax for which will
be a mere nothing, as it will not amount
to q fractional part Of a mill on the as
sessed valuation of the city.
The bonds are redeemable at the eXpira-
ton of five years and at present 1t is the
intention to take up at least $1,000 of the
issue at that time. In order to do this a tax
sufficient to levy $500 annually for five
years will have to be raised.
BY refunding the bonds at Az per cent
the city will save $3.50 a year in interest,
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