The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-12-18
ARE ON WAR PATH.
Bond Buyers Want to Know
Who Underbid Them.

Tremendous efforts are being put
forth today by the representatives of
eastern bond buying concerns to find
out who it is that has muddled up the
city bond sale by Offering to take up
the whole issue of s7910O at Az per
cent instead of ) per cent.
If the bond men can find the man
who is backing the Az per cent. propo-
sition, they will undoubtedly try to
buy him off and get the thorn out of
the flesh If they fail in this, it is
rumored that when the council meets
tonight, an offer will be received to
take the bonds at even less than 41a
per cent. The rival bond buyers will
"'go after the dark horse and beat him
at his own game.
Even at AZ per cent. the city is pay
| ing more than usual for it's borrowed
money. The bonds issued of late years
/ by the city all bear 4 per cent. The
refunding bonds could probably have
been sold at the same rate without
much trouble. had not some of the city
officials become frightened by the
stories of hard times told them by the
bankers. They concluded that they
could not sell the bonds at per cent.
1t is rather a risky game which the
city is playing, for if the man who
has offered to take the bonds at Az
back on his bargain, then the city
would be left without any purchaser at
all for its bonds. The trouble with the
present system of bond selling is that
| the city has not required any of the
| bond buyers to file certified checks as
| an evidence of good faith.
| There are half a dozen energetic
! bond men in town, and what they are
not doing to smoke out" the chap
who has knocked out the per cent.
| proposition is not worth doing. One
! after another they have called on
Mayor Bergundthal and argued, plead
ad nd f1l,@ra nd
/ find out who is offering to cut down the
i rate. The mayor absolutely refuses to
give up any information
Tonight the council will meet to sell
the bonds. There will be eight bids to
be opened. Each of these bids is fig
ured on the basis of a per cent bond.
1t is expected that some good premiums
Will be offered by the bond buyers to
get the bonds at the per cent rate.
If any buyer offers more than $4,000
premium for the per cent bonds. he
will probably be awarded the entire is
sue at per cent. The $4,000 premium
{ would be more than the saving would
be on Az per cent bonds. The annual
interest on per cent bonds is $400 per
year more than AZ, which would
) make a total of $4,000 in the twenty
t years. 1t is not at all likely, however,
} that any of the bidders offers as high
as $4,000 premium.
After opening the bids, the council
{ will probably reject them all and the
mayor will ask if any of the bond buy
! ! erS present care to submit a proposition
on the ~ per cent basis. If there are
any bids on this basis, they will be con-
sidered, otherwise the city will award
the bonds to the mysterious dark
horse" who has come I'D with the Az
? proposition. 1t is understood that the
f dark horse" will be represented at the
meeting tonight by an agent.
Before We sell any bonds to this
= party who is willing to take the issue
Lot
thai today. 1--WE will certainly require z
: sufficient cash deposit to bind the bar
Y gain. The party will have to come VI
: to the scratch with the cash deposit
before he gets out of town.
f The bond buyers came into Mayor Ber.
: gundthal's office this morning. They Wer.
+ very much inclined to be sore. One o
S I'VE think we have a right to know
: what sort of competition we are goina
into. We want to know who this party
n is who offers to take the bonds at ~
: pei. cent. If we consider the competitor
unfair & or unreliable, 1n We ;fid ay not care t.
$ sIm sorry, but I can't give you tn,
e name; gentlemen. You all have righ
:. which will be opened in case it IS de
eIded to sell the bonds at. that rate
d You viii all have fair shake"
I graph What will you do with it?"
i Consider it. I suppose" replied tn
: ssWeil, it certainly don't look right u
me, remarked one OF Lne Dcnd men
# Here we have come out here and spen
/ our money in good faith, and now j
s seems that you are not going to carr.
: out your proposition to sell these bond
It at 5 per cent after all
L can see where you gentlemen have
v kick said the mayor, "and I'm sorr.
i you have been to the expense But tha
is your business. The city Is Obliged {
$ act for its best interests. and if we ca
II sell these bonds at 45z per cent iustea
% of 5 per cent, we will certainly do it,
. This is sample of the interviews whic
DO Mayor BergundthaI has been havin
% throughout the morning.