The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-09-28
SAN FRANCISCO
BONDS SUCCESS
One Firm Offers a Bonus of 1924 500
for First Lot Put on
Sale.
HUNDRED BIDS ARE SUBMITTED
Local and Eastern Capitalists Wiling
to Pay Well for Sc
curities.

SAN FRANCISCO, sept. eff there |
ever was doubt as to the credit of San |
Francisco it was dissipated yesterday !!
when local and Eastern capitalists
broke the record for bond premiums |
in an effort to secure the first INSTALL |
ment of $3,2SO,OOO worth of the new
SIS, 100000 issue of municipal bonds |
offered for sale by the Board of Super |
visors. The premium bid is $71.50 on
each $1,000 bond. This is the joint bid
of e. H. Rollins & Sons and N. w.
Harris & Co. 1t has not as yet, been
officially determined to be the highest
and best bid, as the law requires, but
on its face it appears to be, and the
representatives of these firms declare
that it is fully $4,000 higher than any
combination of bids that can be made
from the even hundred bids which
were opened yesterday by the Board
of Supervisors. Representatives OF
bond-buying firms who were present
yesterday in the interest of their prin-
cipals declared that the premium offer
ed was the best paid in recent years,
and agreed that within the past five
years there had not been SO much in
terest taken in any bond sale.
Ten firms, all reputable and able to
carry out the terms of their bids, and
backing up their offers with certified
checks for $4,000, offered to take the
entire lot of $3,2S0,0OO and pay well
for the privilege. The remaining nine
ty bidders offered to take fractional
parts of the issue and, without excep-
ton, offered to pay a premium. The
bidders who appear to have the high
est bid figured on paying premium
of 1924 500 for the issue of S3,2SO,OOO
This leaves a net interest to the pur-
chaser of 4.46 per cent.
A. w. Billiard appeared before the
Supervisors representing Rollins K
Sons and w. J. Schmahl looked after
the interest of Harris & Co. It was
not until within ten minutes of the
time set for opening the bids that Bull
lard filed the joint bid of the two
big eastern bond buying concerns.
Prior to filing the bid he received a
telegram from the New York Office OF
his people, and it is admitted that on
the strength of that message the
, amount which it was originally inten-
ded to bid was increased, but just how
much is not known, though the i'm
preston prevailed that had they sub
; mitted the offer originally contem-
plated the bonds would have gone to
, William H. Crocker, whose bid is ad-
mittedly the next highest.
The bidders who were ready to take
the entire lot together with the
amounts bid are: e. H. Rollins e Sons
and N. w. Harris, S3,514,52O; William
1 H. Crocker of San Francisco, $780,.
1858; London and Paris National BanF
of San Francisco, $3,5OO,0OO; Contra
Trust Company of San Francisco, SO,
4 49S,O00; Los Angeles Trust Company
= $3,497,500; James H. Adams & Co. O
e Los Angeles, $3,497 900; N. w. Halse!
J & Co of New York, So, 1869, 3OO.O1; Ger
y man Loan and Savings Society of Sal
S Francisco, $3,444,O0O Kountze Broth
:. ers of New York, $3,390,S64; the Firs
= Trust and Savings Bank of Chicag,
n and the Merchants Loan and ~Trus
f Company of Chicago, $3,37O,5S4.
L All these offers are better than Az
: per cent premium, and some of then
very nearly approach the bid Of tn
+ Rollins-Harris combine. Other bidder
|. who were striving to secure smalle
q lots of the issue offered equally goo
8 premiums, and all were apparently an
h Xious to secure even a portion of tn
q bonds.