New-York tribune., 1907-08-13
CITY BONDS GO BEGGING.
FEW BIDDERS FOR ISSUE.
Sols Does Not ProUe attraction for
IhCestOFS

e. -he Controllers office yesterday s15,6o00e3 OF
,. bonds we're offered for sale to the highest o,d
- Only s21S4s5 worth Of bonds were sold.
o- The second time in six weeks the sale of bonds
o,,es s failure They par cent gold bonds,
t,- even as such failed TO attract investors.
The premiums offered yesterday could hardly be
x,~,Y.ed by that term, and in fact the bids aver
- only the barest fraction above par- Many
- +bs regular bond buying houses submitted 10
stds al all Under q charter amendment the rest
- The issue will be sold over the counter. In fact.
y,ry ~ controller McCoOey said yesterday he had
49, informed that s3oel0oo of the bonds would De
ssposed o. to-day as sooa as the sale opened
Sight premiums were offered a few OF the
ivtr-four bids that Were made but these were on
- for small blocks OF the bonds
The following table shows the result cf yester-
"a disastrous sa4e-
Number OF bids received. ca
-rotal amount OF bids received. 81. 2.5l3,4e5.
.Sersre price os 1857 bonds. IcaOos
1-r-sss Price Of 1917 BONDS shout par.
,-corae basis On 1917 bonds per cent.
Zimmerman & Forshay purchased the largest
.-no,,Tt OF bonds. They bought at par bonds
,sa value Of s. 7os $50. The deputy controller was
disappointed at the result OF the sale and showed
r. disappointment plainly, but the condition of
rs stock and money markets. he thought had
-nuch 10 dc with the scarcity Of bids and the lack
~ uremiu1ls. lie said he thought the city would
hsTe no difficulty in disposing OF the remainder
Of the issue throughout the country. He hopes
thsr sales cTer the counter to-day Will amount
70 .,5a055 ss.cs.eS-
DEPUTY CONTROLLER DISAPPOINTED.
honds should not command decent premium and
taat there should not be active demand for
the,n But the bidding a trif1e better than
q was on July . when S29eo0eo were offered. Only
ce.I0 Of that issue sold par. The
trion of the money market is undoubtedly
sronsble for this
Until this year bond issues Of The city have al
~sys been bid for several times over and nave
slpays brought 8 good premium. The extreme
stringency OF the money market. The low
ords many stocks have lately made, there
nv investor
attractive, and the general unwillingness on the
part OF The public 10 invest at al while the stock
and money markets remain in unsettled =
tition the three reasons that We're generally
advanced yesterday for the, failure OF the second
sale
The question OF disposng OF both city and state
bonds received serious consideration from the last
legislature. The small rates Of interest paid
these bonds, and the large dividends that stock
investments were yielding made their sale diff
cult To make them more attractive a ques
tion that puzzled most Legislators, who
willing that such bonds should be sold in the mar
kef for what they might bring and the
whole unwilling TO raise the rate Of interest
The attendance Ct the sale yesterday was smaller
than il had been az previous sales The issue Of
5ered consisted OF 100000 corporate stock for
sious municipal purposes. S2,500 corporate stock
for the water supply sl5oo0oo corporate stock for
the rapid transit roads and 10000 of assess
bonds
Except the assessment bonds the issues we're all
for fifty year periods; bonds for ten years
Controller Metz refused TO take advantage Of the
bill finally passed by the last Legislature au-
shorizing the Sinking Fund Commission 10 raise
the rate Of interest II il deemed il advisable or
necessary 10 make the bonds attractive enough to
ce sold. and had the -ss&e offered at the per
Mr. McCooey emphatically said that he believed
she remainder of the sI5 oea00 issue could be dis
posed of n this country He refused 10 comment
On Controller AIerz's idea selling them outside
the nation. The people know that these city
bonds are good investment and an absolutely saIe
one" he said, ttand I believe that We won't nave
sry difficulty IN selling all we have left over the
counter" This view OF the situation was not
taken by Of the Oldest and most experienced
t,nrloyes in the Controllers office. To them an
Investment yielding only per cent seemed poor
with stocks selling at the prices at which they are
to-day.
In previous years city bonds have sold as follows: