Omaha daily bee., 1909-03-23
SCRAMBLE FOR WATER BONDS
Frantic Efforts to Buy in Antieipa-
ton Of City's Purchase.
SECURITIES ARE RISING IN PRICE
Already They Have Gone from EiHhty
TO EiFhty-Nine and Expected
soon 60 hit the Par
fty MARK.

Bonds Of the Omaha water Works COM
pany have advanced from - to % cents
and may reach parity and a frantic scram-
BILE Is going on among certain sagacious
Omaha rnanciers. who anticipate the like
nhood Of the city voting that beautiful
sum Of $4,000 with which to take over
the plant.
Any kind Of a settlement Of the tangled
problem means that those who are able to
buy the bonds will make somthing II they
buy for less than par. They may even get
a premium-bond dealers disagree as TO
whether the bonds must be redeemed at
par or at 15 by the water company.
The city will not lose a cent by the oper-
atoms Of those who are buying or have
been buying them for less than par. ac-
cording to brokers. The water company
will have to retire the bonds and give the
city a clear title to an unincumbered plant
II the supreme court says pay over the
$4,000. The bonds have nothing to do
witt the deal. according to the brokers,
but there is a little question as to whether
the city could not make back something.
say $4,000 attorneys fees paid by the
Water board. IL the board would order
brokers to buy as many bonds as possible.
Inc security commonly klpNl as a
water bond is Of the issue Of 1875 known
as consolidated SIS and it is bonds Of
this issue which are being traded in at
present.
Prior Lien Bonds.
The prior lien bonds were issued in 1890,
due in 1916. sl,o93, 900 being sold and So7,om
reserved. They pay 5 per cent semi-dn-
nually and are redecmahle at los. None
Of these bonds can be bought on the mar
ket. They are held in the east and held
tightly.
OF the consolidated SIS" s5.5is. 600 were is
sued and 5000 reserved. They pay )
per cent aud are due in 1915
According to brokers the water bonds. or
consolidated IS. are about as scarce n Sc
curity as there is in the long list of Omaha
securities. orders have been placed with
New York houses for $4,000 worth a num-
Der Of times by one Omaha broker and he
has not received much more than an &C
Acknowledgement OF the order. generally not
that much. Offers have been made for the
bonds at market value or a little better
and no bonds have been drawn out Of the
east.
Now and then a few show up. as at the
opening OF the new year one holder un-
loaded bonds because he wanted money and
let go Of several thousand dollars worth OF
water bonds. They were snapped up a
little at a time in 1900 and 5000 lots and
have disappeared. IT is said an order for
$500 worth Of water bonds and a serious
effort to secure that amount Of the securi-
ties would force the price to par.
stock IL in a Pool.
The stock Of the water company is in a
pool. 1t pays dividends to the holders, but
they cannot vote it. This makes 1t inn
possible for outsiders to buy stock a little
OF a time and perhaps get control of the
company. Buyers who invest are given a
handsomely illuminated certificate by the
Farmers Loan and Trust company of New
York. which declares that the buyer is the
owner Of SO many shares, which have been
duly placed in the pool to the credit OF the
owner. The officers or some obliging gen
tlemen holding the proxy votes the stock
the third Wednesday in July and is also
thought to elect directors, officers and do
other things which some stockholders are
permitted to DO.
The stock consists OF first preferred $50.
100 issued and Sli3, 900 reserved; second pre-
ferred. $s57. o5 issued. Sl32.%5 reserved. The
s.. 800 1900 common stock has not been issued