The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-09-01
Issue Voted at Recent Election
Commands Attention in
Financial Market.
COUNCIL TO CONSIDER
TENDERS THIS EVENING
TWO FIRMS APPARENTLY HAVE
BETTER OF COMPETITORS
IN OFFERS.

Bond Bids Received.

4 Woodin. McNear & Moore Chi y
y cago: Offered to take entire issue y
y of 100000 at par, interest rate IA y
y per cent. Means premium of $4,000 y
y IL bonds run twenty years. minus +
= crued interest. amounting 10 $3.50. Z
y Net bid, 20-year basis. S525. 80. y
y De Witt. Trimble a Co., Chicago: y
y Net bid, s6os SIG. y
= n. w. Halsey & Co., Chicago: Two +
y bids. Bonds delivered as per adver- y
y tisement, 500. I42; bonds delivered on y
\ demand. s60s $50. Accrued interest +
y allowed city.
! E. H. Rollins & Sons and Harris !
= Trust & Savings Co.. Chicago: Net =
! A B. Leach & Co. and First Trust !
: Savings Co, Chicago: Net bid. =
! Seasongood & MAYER. Cincinnati: :
y Net bid of $l26,36o for sl25,ooo sewer Z
4 bonds. =
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The foregoing are the bids opened last
evening by the council for the 5000
water and sewer bonds voted by the peo-
pie on July %. No action was taken on
the tencers, and final consideration was
postponed until special meeting this
evening.
After the opening OF the bids by Re-
oorder Moreton. the council went into
executive session in the mayors recep-
favorable bids. that of Dewitt. Trimble
& Co. and Woodin. McNear & Moore
were discussed.
The former firm offered premium of
50 s26 on AZ per cent bonds. and the lat
ter offered to take the bonds at par at
IA per cent interest rate. In the bond
ordinance passed by the council the max
imum rate was fixed at AZ per cent but
II
rate We're not barred.
In the advertisement for bids IL was
stated that the bonds should be dated
October l. that $S25.0t0 of the money
should be paid on that date. $l500O0 Oh
Jan. / and sl25.0 on April J.
Saves the Interest.
II the offer of Woodin, McNear * Moore
is accepted il will mean that the city
will save S1,5OO interest each year on the
bonds. which is considered the same
a premium of $50 600 on bonds. which run
for period of twenty years or of Sl0OJ
for ten-year bonds. The city in this in
stance has a right to redeem in ten years
if ii sees fit
This concern. however. does not offer
TO rebate to the city the accrued interest
on the deferred payments, which, at IA
per cent would amount 10 $3.50. To as
certain the exact amount OF the bid, this
must be deducted from the $4,000 prem
ium on the twenty-year period and the
making the bid figured this basis,
amount 10 $S25. 100 and 500. 80. respectively.
More Available Money.
The bid of Dewitt Trimble & Co. means
that the city must pay Az per cent inter
est and in return will receive $50, S25 for
the bonds In cash. with accrued interest
which, at Az per cent. would amount to
"a. 600 If the bonds are TO be redeemed
| in ten years, this would mean a bid of
ss14.326. and for the twenty-year period
the same amount. as the accrued interest
and premium offered are constant guam
titles This bid has the advantage of Civ
| ing the city nearly $4,000 more available
at once for public work and if the inter
est on this sum for the use of this
| amount for ten years is added II would
mean a bid of approximately $3.50 and
| for the twenty-year period of $4,000
The question before the council Is
whether there is any probability of re-
deeming the bonds in ten years. If So
the bid of Dewitt. Trimble < Co. in SUI
] perior: If not the bid of Woodin, NC
/ Near K Moore is about sl.00O the better
These matters will be settled at the
I meeting this evening.
l