The evening times., 1901-06-25
CITY BONDS NOT FLOA1ED
Philadelphia's Credit Not Good for
a3 Per Cent Loan,
An Attempt to Borrow 100000
for Water Works Results in Only
one Bid of S5.OOO-The Authori-
ties VIII Offer Higher Rnte

for Water Works Results in Only
one Bid of S5.OOO-The Authori-
ties VIII Offer Higher Rnte
PHILADELPHIA. June 25--The pres
tige of Philadelphia as the borrowing
power with the finest credit in the coUn-
try has been dimmed if not lost entirely
The attempt TO negotiate a 100000 loan
at 8 per cent for the Improvement of the
city's water supply failed dismalIy yes
terday, when only one bid-a meagre offer
to take s., $5,000-was received by Mayor
Ashbridge.
Of all the big municipalities of this
country, Philadelphia in the past has boT-
rowed money at a lower rate Of interest
than almost any other city. The present
signal failure to secure a loan on the
terms named by the city is without prece-
dent in the history Of Philadelphia,
and the authorities are deeply cha grined
Mayor Ashbridge refused to make a
statement, but his secretary. Mr. Morrow,
said the failure to float the loan could not
be viewed as a reflection on the city's
credit, but was directly due to the reluct-
ance of fnanciers to invest money at
per cent when a higher rate can be OBJ
tained in the open market.
City councils Will be asked no doubt
to pass another ordinance with an in
creased rate of interest for the S9, ,GoO, coo
loan, probably 81 per cent This seems
TO be the only course left for Mayor Ash
bridge to secure the money needed to
complete the filtration work already plan
ned and for which bids have been receiv-
ed and scheduled.
The mayor will announce within few
days the action to be taken by him upon
the question of the loan.
It was suggested that the sinking fund
commissioners might take the loan. but
the only available sum held by the com
mission is 81, ,969, ,699- -26 in cash, including
S465,000. the proceeds of the recent sale of
the Ninth ward gas works. The commits
sion holds many 6 per cent bonds, which
are selling at a higher figure than any
OF the city's outstanding issues, but these
securities cannot be legally sold for such
q purpose
Director Haddock. of the department of
public works. said the failure to get the
loan viii seriously delay the work on the
filtration plants There is about s, 10000
worth OF filtration work under contract
Bids for about SS.15d. .tss3 more work have
been opened, but 10 awards have been
made, as the department has only S2,5t9,-
600 with which 70 do that work
1t was at noon yesterday that the may
or, Gen. Louis Wagner. and Comptroller
Walton, comprising the sinking fund COM
missioners, and City Treasurer Moore sat
at the table in the big outer reception
chamber Of the chief executives office in
the City Hall They were there TO receive
proposals for the S, 9,0oo,0O0 Of the S12,coo-
coo thirty-year water loan authorized by
City Councils in March, 1900, the rate Of
interest not to exceed , per cent
r. NJ 4
Co; R w. Meirs, representing Harvey
Fisk < Sons: George Sailer, jr-. Of Sailer
& Stevenson, and George II. Hill, Of
DrexeI * Co, were the only financial men
present, John ". Hill, the water expeTt,
and his assistant, Samuel T Wagner, be-
ing among the other spectators
There was look OF chagrIn on the
faces of the city officials as solitary en-
veIope was opened by Mayor Ashbridge
and handed TO Secretary MoTTow for the
reading of its contents. It was an offer
from George H. Hill to loan the city $500
at 1M, which would make the rate Of in
terest he would receive less than } per
cent The bid was not made on account
OF DrexeI & Co, but was an individual
offer.
with the lonely little proffer Of $500
to cause only discontinue Mayor Ash
bridge, Sinking Fund Commissioner Wag-
ner. and City Treasurer Moore held a
consultation for half an hour
The bids viii be held under advise
ment," pluralIy announced Secretary
Morrow, as the conference Of the mayor
and his official associates ended
The sinking fund commissioners can
hardly take the loan sad General Wag-
uer; we have not enough cash, and city
securities held by the commission cannot,
under the law, be sold for such q purpose
BY act Of Assembly Of May 13, 1851, it
is provided that the investments which
now OF hereafter may form part Of the
sinking funds Of the city, shall not be
sold, except for money. nor exchanged
except for the loan Of the city; and in
case Of such sale OF exchange the pro-
ceeds thereof shall be applied exclusively
to the sinking funds Of the city, or TO the
extinguishuent Of its funded debt
It was reported that Mayer Ashbridge
viii ask Councils to offer an increased
rate Of interest and that the ordinance
be so worded that the mayor viii be
given the right to accept the most ad-
vantage0us bids offered
The first part of the $l2,y9rts0 water
loan amounting TO $3.000,091 was sold
June = Of last year, with SZ,evt,vvJ OF i'm
proyement bonds the interest rate OF
both loans being per cent An act OF
Assembly prohibits the sale OF city bonds
at less than par. and the S5,SG0.G50 Of
bonds were sold slightly above par; the
s. coo go loan commanding lU1ZUl, and the
other I01153-
The underwriting syndicate, which car
ried the s. 10000 loan, is said TO have
cleared only $3.50 IN profits, and as a re-
suit there was no desire TO bid for the
S9.0J1010 loan at 3 per cent yesterday.
The failure Of the loan was critically
discussed on every side by local bankers.
and the only opinion that could be Sc
cured for publication was that the rate
of interest per cent, was too low to
suit the present conditions OF the finan-
cial world Representatives Of Drexel &
Co. Brown Bros & Co, and other fnau-
cial institutions gave the same eXplana-
ton OF the failure TO float the S. 610, 900.
A HAND-To-HAND FIGHT
Trouble Cansed by Man Claiming Z