The Birmingham age-herald., 1905-04-15
Jt|ks Says That tht Offers Were Too Low and That
 He Cannot Accept Them
FEELS II HIS PUBLIC
 DUTY ID DECLINE THEM
Thinks the State Runs Some Risk In Holding Over, But Believes Bonds Will Command Higher
 Price.

Montgomery, April 14-(Special. )-iov- ernor Jelks has refused to accept any of the bids opened April 1. for the issue of sS,oO0.0OO of refundlng bonds to take the place of bonds coming due within the next fifteen months. He says that the number of bids at prices large enough to justify the state in selling were too small to be counted as covering the situation and he has, therefore, decided to sell none at all. There are none for sale he concluded as he ended the interview with the reporters. He then made the follow ing statement concerning his decision:
 Governor Makes Statement.
 .'I have rejected all bids offered for the state bonds There were a number of bids at a premium. which was fair to the state, but they called for, in the aggregate, so few of the bonds, that could not have disposed of under the bids offered. either the As and B's, s., 4s7 ,600 due in July, ls06- or the Cs, due in January, 1906 .or s966000. The highest bid made for the whole of the three isuos was $1 .S3 premium on the enc hum dred dollars on BE bond, or a basis of interest of 3.4S per cent per annum This is not a fair rate of interest for the treasury to pay, in my judgment; 6id am impelled by a sense of public duty to decline to accept this highest bid; and to reject therefore, all of the bids.
 T was greatly disappointed at the of fers made. Il Is explained in so-e quar- ters however-and the explanation is reasonable-that bidders were shy because of the time which must elapse before the bonds could be delivered to the pos slble purchasers The larger bidders con sidered that they were buying futures and that there was danger to them in possible adverse money market year from this time. The state may be taking some chance itself in holding them six months and a year, hoping for better opportunity to sell; but I cannot think that the danger is at all serious. Anyway have not been able to see my way clear to parting with the bonds at what l look upon an iasaair price.
 ''The interest Alabamians have taken in the proposed sale has been very grat- flying to me, and must be a source. of pleasure to all of our people. The high est bid for the whole of them was made by a syndicate, Alabama banks, mem- bers of it, subscribing for over four mil lions of the eight millions bid for. In common with every Alabamian, l should be glad to see them all held at home and the interest paid to home people"
 Only Two Big Bids.
 There were only two bids submitted April for the whole of the $S, 600 Of refunding bonds These were made by syndicates of bankers of New York, Bir- mingham and Montgomery, for 31s per cent bond. One was on a basis of 43 and the other .49, the offers being 101. S31. and 00125.
 The high bid was made by the following interests: Ladenberg, Thalman x Co, New York; Goldman. Sedis & Co.,, New York: First National Bank. Montgom- cry; First National bank, Birmingham American Trust and Savings bank, Bir- mingham; Peoples Savings Bank and Trust company, Birmingham. All the issue. 101 .s3l
 The next highest by the Hanover Ma tional bank New York the Merchants and Planters Farley national, Montgom- cry and the Birmingham Trust and Saw ings company, Birmingham. All, 100 125. The Birmingham Trust and Savings company of Birmingham also bid for $500000 at 101 50. The first bid is on a basis of 343 the second S.49 and the smaller 3.44.
 The General Bidders.
 The other bids came along as follows: Union Guarantee Trust Surety com pany, Birmingham, $50,000 at 103 basis of 3.3S
 City National bank. Tuscaloosa, 800, 900 at 102, basis of 3.42.
 Union Trust and Savings Montgomery, sl00, 600 at 100.012.
 First National bank, Tuscaloosa, 40.000 at 10S, basis of SIS.
 H. R. Shorter, Montgomery, 5000 at 103 75, basis of 3.35.
 Mrs. Susie Owen. s4O,OOO at 100. 50.
 J. D. Poole. s3000 at 50, basis of BPS
 Mrs. E. M Qulgley. s10OOO at 100. 50.