Los Angeles herald., 1908-06-30
MATHEWS SELLS
AQUEDUCT BONDS
NEW YORK BANKERS WANT
ENTIRE ISSUE
READY TO TAKE 100000 AT
ONCE
Additional Interest Offered by City
VIII Make Difference of Two
Millions In Forty Years
Payment

with the tempting bait of Az per
cent w. b. Mathews, attorney for the
aqueduct commission, who returned
from New New yesterday, has prac-
ticaily disposed of the entire issue OF
$23, GOO, 900 worth of Los Angeles aque-
duct bonds still unsold to two of the
largest private banking firms in New
York city, acting jointly.
These firms are Kountze Bros. and
A. b. Leach & Co.
The first batch taken up will be 81
040, 600 of the Az per cent bonds which
were authorized by the city council
last week at par and one-eighth OF
per cent premium, plus accrued in
terest to the date of delivery. or this
amount half is to be delivered before
July 25 and the coast representative
of the firms is In Los Angeles prepared
to pay down the necessary money at
once as soon as the bonds are signed
and the action ratified by the council.
The ratification will probably occur at
81 special session of the council this
week.
One-half of the amount remaining is
to be delivered August 10 and the last
half October Is.
While definite arrangements have
been made only for the first Az per
have asked series of options that
covers the entire issue for completion
of the aqueduot. The first option asked
is for S4,S96,000 at the same premium
they have offered for the first issue,
one-elghth of per cent. The Celivery
is to be $4,000 February 1 and an
equal amount every sixty days.
Increase Premium Offer
The second option asked is for $9,-
$4,000 for which a premium of one
half of per cent Is offered, delivery
| to begin with $Si6000 February 1, 1910,
! to be followed by the same amount
every sixty days until the issue is ex-
hausted.
The third option asked Is a general
one for the privilege of purchasing
all remaining bonds of the entire issue,
and for these premium of l per cent
is offered, plus accrued interest to date
OF delivery. This calls for a delivery
of SS16, 900 sixty days after the date of
the sale and to continue every sixty
days thereafter.
A large part of the money for the
purchase of the bonds will come from
Europe, German financiers being espe-
cially interested. AS many of these
foreign buyers are accustomed to bonds
ing bankers have asked that they be
allowed the privilege of ordering the
securities in smaller amounts than the
$1,000 in which they are now issued,
agreeing to pay the cost Of the engrav-
ing of such bonds over the amount
that would be paid for the $1,000 denom-
nations.
Mr.. Mathews is much elated over
his success In dispcsing of the bonds
to the two banking houses, as he de-
clares the bond market in the east Is
not as good as it has been at times in
the past, and the fact that two firms
are anxious to take the paper shows
Los Angeles credit is gilt-edged in the
east. Mr. Mathews said he also found
a peculiar obstacle in the fact that no
city in the country has as large debt
without correspondingiy large sinking
| funds.
$2,o00,o 900 More Interest
The difference in the interest of Az
per cent and per cent, at which the
bonds We're first offered. will make ap-
proximately a difference of $2,000.000 in
the interest that must be paid on the
securities n the forty years which they
have to run. No payments of principle
and interest begin and continue in an
nual installments of equal amounts for
thirty-four years.
| An important feature OF the sale of
the bonds and the options asked is
| that the entire issue for the comple-
tion of the aqueduct can be delivered
and the money collected within the
| time set in the original estimates for
the completion of the work.
Il