The San Francisco call., 1907-06-19
MERCHANTS EXCHANGE
SUBMITS AMENDMENT
Advice of Financiers Upon
Proposed Measure
Solicited
BOND PLAN ADVANCED
Corrections in the Charter
Are Desired by the
Organization
BOND PLAN ADVANCED

The charter amendments committee
of the merchants exchange has com
pleted its work and is sending the re-
suits of its Investigations and proposed
changes to the civic league. all the
banks and other financial institutions.
as well as to the city and county at
torney.
Advice and suggestions are asked
Tor. Accompanying the charter amend
ment proposed is series of questions
relating to it and a request that the
recipient express his Judgment in the
matter.
The bonds proposed to be issued un-
der the charter are the subject of the
attention of the amendment committee.
In the opinion of the latter there are
many corrections to be made in the
charter regulations governing the issu-
ance or the bonds. Following is sec.
ton 10 of the charter as amended by
the merchants exchange amendments
committee:
Section 10-The bonds issued under the pro-
visions of this article shall be of such form
election therefor, shall determine; bnt sncb
bonds shall be payable interest and PRINCIPAL
IA gold coin OF the United States. The interest
on such bonds shall not exceed ~ per cent
per annum and shall be redeemed at such
times and In such amounts as the sunar
yisors shall determine as ser forth in the or
dinance submitted to the electors. nrovIded
that redemption of such bonds shall begin In
lIa.5 nDt more than Is years and shall be COM
pieted IN not more than 10 years from the
date of issue. A 'he
The bonds so issued shall be exempt from
al laNation Tor municipal purposes and shall
De ISSUED In denominations Of not less than
sIo and not more than $1,000, and preference
IN tne sale and allotment thereof shall be given
TO subscribers for the smallest amounts and
tne lowest denominations.
-, such bonds. when issued, may be sold by
When the bonds are offered for sale thsT sha 81. III
De advertised In the official paper or = other
wise WIS and and sealed proposals for the purchase of
tne Wnoie or any part thereof shall be opened
at the time specified in such advertisements
BONDS shall be sold to the highest bidder for
.% isss 'nan par but the supervisors shall have
the rlght 10 reject any or all bids.
III less than the amount of bonds offered shall
M ne soid, tne supervisors may. with the concur
renee OF IA members and the mayor place
such unsold bonds on sale at the civ treas
ury, or at branches thereof, and such bonds NAV
De sold to any applicant at such price as may
be fixed by the supervisors, provided that sucb
price snail not be less than par and accrued
interest, or less than the highest bid received
OF less than the current price of such securi-
Ties IN the open bond market.
Mhen no bids are received for bonds and nona
can oe soid Tor cash at par or above the super
then nave power to call for bids for the con-
struction or acquisition of public utility pay
able in the bonds issued for the purpose and srsb
bonds may be paid In lieu of cash
The proceeds OF any sale of bonds shall be
placed In the treasury to the credit of the proper
rund and shall be applied exclusively to the pur-
poses and objects mentioned in the ordinance
authorizing their issue. until such objects are
fully accomplished after which, IL any surplus
remains, such surplus shall be transferred to the
general fund. Payments made in bonds shall not
De applied to any other purpose than that for
which they were issued and any bonds remaining
after such purpose is accomplished shall be can
ceied and DESTROYED at the time and in the mau-
ner determined by the superv isors.
II the D0nQS of them offered for Ia
shall remain unsold the supervisors NAV with
the concurrence of IA members and the MAYOR
cancel such unsold bonds. provided that no bonds
shall be cancelled unless the same have been Of
fered for sale by advertisement above pro-
v1ded at least three separate times at intervals
Of not less than 80 days. and provided that no
bonds shall be cancelled by the supervisors as
aforesaid, at which cash at par or above has
been bid by bona fde. responsible bidder or bid
ders, unless the ordinance caneeling the same
shall be submitted to the vote of the electors of
the city and county at the next election, and un-
less said ordinance shall at said election recefye
in its favor majority of the votes cast thereon
Said ordinance shall be submitted IN accordance
with the provision Of section 20 of chapter / of
article 2.