The San Francisco call., 1908-07-07
$4,OOO,OOO IN
GASBONDSSOLD
TO fasteners
Capitalists Who Visited State
Make Heavy Investment
in California
Largest Transaction Since Fire
Shows City Securities
Again in Favor
Success of Municipal Issue Now
Assured Is Opinion of
FinanCiers

One of the biggest deals since the
fire of April, 1906, has just been COM
pleted in the sale of 100000 of
bonds of the California gas and cleo
tric company to syndicate of eastern
capitalists. The bonds carry per
cent interest and were taken at go
and 81. They run for 80 years. AL
though no formal announcement has
been made by Halsey & Co., the firm
that hoated the issue, it is admitted
that the sale has been negotiated.
Not only is the operation one of the
largest in recent years in local finan-
cial circles, but it is taken as an in
dication of the readiness of investors
to purchase San Francisco securities.
Financiers who had heard of the sale
said yesterday that it meant an active
demand for the municipal per cent
bonds which will be placed on the
market in the fall.
The California gas and electric
bonds were taken by the group of
men who visited California last month
as the guests of Halsey & Co. The
capitalists among whom the bonds have
been divided are: Stedman Bullock and
J. Z. Oldham of Boston: r. Walter Levy
and Allen G. Hoyt of New York; Z. P.
Russell, H. B. Judson, L. a. Walton,
NJ. n. Mayer, J. A. Scudder H. T. Libley,
j. G. Craft, H L. Steuart, NJ Z. Simond
of Chicago: E. T. Morris of Bay City,
Mich. l. H. Kirby and A B. Connable
of Kalamazoo, Mich; A. B. Bishop of
Flint, Mich; ]. c. Copley of Aurora. H.;
Howard ]. Lesher. John w. Anderson,
George Q. Begg, George Wiley, H. F.
Fox, Theodore Luce, ]. r. Bodde and
William E. Reilly of Detroit, and John
Nickerson Jr. OF st. Louis.
SEE STATES PROGRESS
When the financial men were out here
last month they were taken through
the state in special train under the
guidance Of Cyrus Peirce, local man
ager for Halsey & Co. After inspecting
the city the fnanciers were taken to
the various plants of the California
gas and electric company and were
greatly impressed with what they saw.
Peirce returned to the eastern states
with the party and there the terms of
the sale were arranged.
The $4000,000 bond issue of the Cali
fornia gas and electric company was
,
of the corporation were reorganized.
The subsidiary companies, together
with the San Francisco and the Pacific
gas and electric were unified in the
form of a $45,000,000 deed of trust. The
outstanding bonds of the California gas
and electric company were called in
and new ones issued. In addition a
new issue to the amount of $9,000,0O0
was authorized to be fioated as a board
Of trustees should direct. The trustees
put out a $4,000, 900 issue and this was
placed with Halsey & Co. The banking
firm Immediately took the matter up
with the eastern capitalists who have
just purchased the bonds.
WILL ENLARGE PLANTS
A part of the $4,000 900 will be used
to take up the floating indebtedness
and the remainder will be used for
the extension and enlargement Of the
company's power plants located in va
rious parts of the state. The California
gas and electric is now selling to the
amount of 175,000 horsepower and will
increase it's strength to 225, 900.
The excess viii be sold largely in San
Francisco, where the growth of manu-
featuring since the fire has greatly
augmented the demand. A number of
new factories have sprung up along the
peninsula and the company will supply
these also
The figure at which the bonds have
been taken makes the rate about 51a
per cent. The conditions are extremely
unfavorable at the present moment for
such a sale and the deal is therefore re-
garded as highly advantageous to- the
company.