The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-12-18
The RATE is CUT.
City Refunding Bonds to Draw
4 1-2 Per Cent.
Mayor Bergundthal Says He Has
Proposition at That.
AN OUT OF TOWN MAN.
The Mayor Refuses to Divulge
His Name.
Much Miscellaneous Business Is
Disposed Of.

After all the city of Topeka will sell
its refunding bond issue of $4,000 at
an interest charge Of Az per cent in
stead Of per cent as it has been ar
ranged to do. Mayor Bergundthal sur
prfsed the city council Thursday night
with this statement:
IT have received a proposition from
a man whom 1 believe to be reliable to
take this $4,000 issue of bonds at Az
per cent. 1t seems to me that we should
take some action preparatory to the
acceptance of this proposition, or the
sale Of the bonds at a AZ per cent rate
instead of the rate of per cent
Pursuant to this suggestion, Council
man S. T. Howe offered this resolution,
which was adopted:
Resolved, by the mayor and council
of the city of Topeka, That the city
attorney be and hereby is instructed
to prepare an ordinance providing for
the issuance of bonds substantially in
accordance with the ordinance recent
~ passed, the only difference being
that the new ordinance shall provide
for interest at Az per cent"
It was argued in the State Journal
some time ago that the present bond
issue be offered at lower rate than 3
per cent and a less number of years
than %. The council voted to reduce
the life of the bonds from 25 to 20
years, but left the interest rate at 5
per cent because all the bankers said
that the bonds could not be sold at less
than per cent. Now that a PROPOSE
ton to take the bonds at Az per cent
has been received, it seems that the
bankers were mistaken, after all.
Thursday night was the time fixed
for opening bids on the refunding bond
issue. Eight bids were in the hands
1t z FTNT-.
afternoon. Owing to previous agree
ment to postpone opening the bids I'M
til this evening. nothing was done in
regard to these eight bids 1t is likely
that at the meeting tonight all these
bids will be rejected They may not
even be opened. The city has never
officially advertised the bonds for sale,
and it IS free to do as it pleaSeS with
If the council decides to reject all
these bids, it will in all probability at
once pass q new bond ordinance reduc-
ing the rate of interest to Az per
cent, and it may Immediately consider
propositions to sell the bonds at the
reduced rate of interest. The city clerk
was instructed to notify all the bond
buyers who are in the city of the
change in plans, and give them a
chance to submit bids on the bonds at
a AZ per cent basis.
F. W. Freeman. of Topeka, repre-
senting one of the out of town bond
buyers. attended the meeting last night
and asked the council to postpone any
definite action on the Az per cent.
proposition until his firm might have
q chance to consider the question and
decide whether it desires to go after
ehe AZ per cent. bonds. MY principal, .
SAID Mr.. freeman, may want to bid
on the bonds at AZ per cent. But" he
added, I don't think he will"
mayor Bergundthal was asked to
state who the proposition to take the
Donas at IA per cent comes from.
am not at liberty to state" he
Balo. because it might prejudice this
party interests. 1 will say that it is
an out of town bond buyer who makes
the Offer
DANGER FROM ICE.
James F. McCabe, city engineer, no
tined the council that the overhead
wires placed temporarily on the Melar
prldge should be removed. Mr.. McCabe
stated that the weight of ice on the
cables during the winter would en-
danger the hand rails on the bridge
ne matter was referred to the judic-
lery c2mmlttee and the city attorney
ASKS MORE PAY.
City Engineer McCabe asked ths
council to grant him an increase in pay
Prior TO 1880 the city engineer. received
S1,Ooe year and was allowed three as
slhtants who received $275 month. Foi
several years after that date the par
vas fixed at 1000 a year, as there wa,
not much work being done in that de
partment. Mr. McCabe asked that tn,
salary Of his office cbe increased IL
$500 year. The requesttwas referre,
to the ways and means committee.
MONEY TO PAY BONDS.
To pay interest and principal OF
bonds, due January I, the followins
amounts were appropriated by ordin
ance passed under suspension Of rules