The Topeka state journal., 1908-05-26
WOULD TAKE ALL
One Firm Agrees to Pay Pre-.
MUM for Bonds.
Two Plans Are Submitted TO
+. the Council.
ACT AS AGENT FOR CITY
Other Would Buy Entire Bond
Issue Outright.
Final Action on Their Disposal
Is Postponed.
CT AS AGENT FOR CITY

The council very wisely last evening
decided to defer action On the matter
Of disposing Of the $4,000 worth of i'm
provement bonds until propositions and
understandings are in more definite
shape.
There is no doubt in the world but
that Mayor Green's idea to dispose Of
the bonds to the people Of Topeka and
Kansas is a good one. The only point
is to take no action which Is too hasty,
clearly understood.
The State Journal urged that the
council make no contract last night.
Things were not clearly understood.
1t develops that in deferring action
the council has done we'll. A few
days will undoubtedly make things
clear and definite, for the main idea is
all right, but the city must secure the
highest possible price and place the
bonds at the lowest practicable inter-
est and get the bonds into the hands
of our own people. 77,
The proposition made to the city by
the Prudential company was so
indefinite that it gave possible bond
buyers the chance to charge. as they
did, that the Prudential company
was contemplating some rake off,
The State Journal is thoroughly con-
vinced that the Prudential company
had no intentions Of this kind. but the
wording Of their proposition to the city
left them an opportunity to obtain a
rake off, that is, profit, through
taking any accrued interest to them
IL %~I~ fe~ tI.ok
bonds might bring after they were
purchased by the Prudential. that is,
any part of the bonds that were unsold
+ to others. 4ts
There are no more honorable busi-
ness men in the city than those con-
nected with the Prudential institution
and it is to their interests that they
enter into no agreement with the city
that shall not be clear and perfectly
plain.
1t now turns out that the PROPOSE
ton was so indefinite that the city
clerk has no copy of the proposition,
the mayor had none and the Pruden-
tial had none. 81
The State Journal applied to every
one of these people today and was un-
| able to get the proposition.
The mayor late this afternoon gives
| the State Journal the following as his
recollection the proposition the Pru-
dental made to him, the notes and
| memoranda covering 1t being now in
the hands of a stenographer and not
available for use until tomorrow:
| {"Referring to our frequent CONVEX
sations in regard to the contemplated
issue Of $75, 100000 as ~ per cent i'm
provement bonds, we will make this
proposition: AS agents of the city, we
will secure subscriptions for said
| bonds at par; if oversubscribed will
give small subscribers preference. If
undersubscribed will. buy what is not
subscribed for ourselves" Ssf
1t will be observed that there is moth
| ing said in this proposition about al
| lowing the city for any accrued in
terest on the bonds that the Prudential
people might take, neither is there any
provision for receiving subscriptions
| for the bonds at a premium. both of
which matters must be clearly stipu-
lated before the city can safely make
any arrangements of this kind.
The Prudential people in the report
| below state their position. 1t stands
| for itself. The State Savings bank peo-
pie also make their statements quoted
| below.
The State Journal cares nothing
about any alleged quarrel between
| two financial institutions, il there be
any quarrel. Both institutions stand
high, but it is not unlikely that each
| desires to gain some advertising, or
profit, out of the transaction.
| So well plased was the State Jour
nal with Mayor Green's idea that it Of
fered to advertise these bonds free, SO
| that any citizen of Topeka or the state
could have the opportunity of getting
thousand dollars in bonds or more
| IL he wanted it. It agreed to take ST.
900 itself at the best price that was
| offered.
The offer of a substantial premium
shows that the city can dispose of the
| bonds at some figure above par, or at
slightly lower interest
This paper regrets that President
GODDARD of one institution combatted
| the whole idea of placing the bonds
with Topeka people upon the absurd
basis that. the bonds being nontaxable
that il our own money were invested
in our own bonds that we could not
tax ourselves for it.. Mr.. Godard's re-
marks are quoted below.
The Topeka State. Savings bank Of
fered last night to take the entire is
sue of Topeka Improvement bonds, $78,-
600 worth at a premium, the bonds
bearing Az per cent. The offer was
made to the council last night by Will
! lam Macferran and A. A. GODDARD in
behalf of the bank. This shows that
the city will not have any difficulty
about disposing of the bonds above par
even after scaling down the interest
from the rate of per cent as first
fixed.
The State Savings bank further
agreed to dispose of the bonds to in
vestors desiring them ,at the same price
that the bank purchased them from the