The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-07-21
HURTS BOND SALE
City Nay Not Be Able to Sell
Four Per Cents.
Heavy Losses of Insurance Com
panies the Cause.
WERE GOOD BUYERS.
San Francisco Disaster RespOn-
sibIe for Situation.
MayOr Davis Says Rate May
Have to Be Raised.

The losses Of the insurance com
panies at San Francisco has had its
direct effect upon the disposal of bonds
BY the city of Topeka. The fire in
surance companies were credited with
being the heaviest purchasers in the
bond market With the heavy losses
indicted upon them by the disaster in
California the surplus of large ma
5ority Of the companies were wiped
out. They haven't had an increment
to invest in municipal bonds and as a
result the disposal of that class OF Sc
Curiti-s is not particularly lively To-
peka had some difficulty in securing
bidders to an issue of 100000 Of inn
provement bonds lately and now an
issue of $4,000 of refunding bonds
which had no takers at 4 per cent VIII
be readvertised for at y per cent
The rate of interest had to be IN
creased in order to make them a more
attractive proposition to probable in
vestors.
Il am afraid we can't dispose of the
bonds at 4 per cent" said the mayor
THE only thing for US to do will be
TO place them at X.
Though no bids were received for
the refunding bonds al the first adj
vertisement there is considerable sure
~ that bids will be entered upon their
rea dvertiseme nt. We'll. Roth & Com
the bid for the 100000 improvement
bonds, have notified the city that they
vial be pleased to purchase the So
600 refunding issue at premium.
They also file a formal written accept
ance of the award for the 100000 IS
sue of Improvement bonds
Topeka Is not the only city suffering
the experience Of having difficulty IN
disposing of bonds at the advantageous
figures that prevailed last year All
a qdyrarfiSinp- sale of bonds at
this time have a scarcity of bids
Sixty-three thousand dollars worth Ct
cancelled Improvement bonds which VIII
fail due during the month of July ana
which the city has paid off have been
received by NJ. NJ. Hale, city treasurer.
Some of the bonds are held by lOca!
parties but the majority are in the
hands of eastern investors. The total
amount of the bonds and interest ma
turing was 500, coo. Those which were
entered in on the books this morning
Of the city treasurer as being cancelled
were $50 900 of Improvement bonds for
paving and sewer. They bore interest
varying from AZ per cent to per cent.
The bonds were issued in the sum OF
81 600 and $500 each with the exception
of one bond which was for $500. Though
local money is plentiful and everyone
is apparently prospecting, thescity receiv-
ed only S. 1912 in the way of pay
ments in full of assessments for brick
paving contracted for this year. This
Is less IMAM Z per cent Oh 6ItlI6 assess
ment. When the assessments are not
paid in full the property owners pay 3
per cent interest to the city on the r5-
naming portion of the assessment re-
naming unpaid each year. the assess
Tnents being made payable in ten yearly
fnstallments.
Ordinarily from 10 per cent to 10 per
cent of the entire assessment is paid n
advance" said the mayor. This year
st is less than 2 per cent. It is some
thing unprecedented. The people are
prosperous and many can afford to paw
the money in advance but I presume
that they think they can get more than
3 per cent on their money. know that
I could but the fact that I wouldn't
be troubled each year with the assess
Tnent would induce me to pay in ad-
vance"
The time for paying on the brick
pavements expired with July 10 while
assessments may be paid in full on
Kansas avenue property up until the
22d or rather the 2sd. which is Monday,
OF July.