The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-07-28
RATE is TOO LOW
Topeka Four Per Cent Bonds Go
a Begging.
Indicates That Money Is Some
what Tighter.
CHANGE TO BE MADE.
To Be Reissued at Four and a
Half.
Local Investors Profit by This
Change.
'HANGE TO BE MADE.

! The offer of the municipal 100000
per cent Improvement bonds to eastern
ers was not productive of results. This
iact does not reflect at all upon the
financial standing of Topeka as the
| bond issues of this city are generally
taken up rapidly. but on the other hand
| it emphasizes the fact that money has
: tlghtened throughout the country, COM
mandlnS a higher rate of interest. Bids
for the sale Of the bonds were to nave
been opened at the Monday evening
meeting of the city council as the news
papers stated. but by the time Monday
evening had rolled around it was found
that the bids were a minus quantity.
The city 'afthers' have been at some
what of loss to know just what course
TO follow in consideration of the cir
cumstauceS. The first suggestion made
was that the bonds be turned over to
the contractors In payment for their
work as this would be allowable ac-
cording to the terms of the agreement.
This was thought unwfse, a II would
likely mean that these gentlemen would
find it necessary to sell them at a sac
rice hereby coming out at the little
IN order to come to some definite
conclusion a special meeting of the
council was held yesterday afternoon
which was not we'll attended 1t was
frally decided to discard the per
cent bonds and make a new issue which
viii be worth Az per cent to the pur-
chasers. 1t wss likewise determined
that Az per cent should be the rate Of
interest on the Mulvane and College aV-
enue paving bonds and those for the
payment OF sewers. Bids for the new
bonds will be advertised and will be op-
ened at the meeting of the council Oh
August 9. 1t is thought that at the
higher rate of interest there viii be no
difficulty in dispOsing of the bonds at "A
higher rate per cent. The cost of the
printing and wor,s on the bonds to be
discarded was about S225 which means
that another amount of equal magni-
tude viii have to be expended in pre-
pairing the new issue.
The Topeka people who have subscrib-
&c for the Improvement bonds through
the Prudential Trust company will pro-
t1t by ths lev issue, as they win have
the extra half per cent coming their
way When contracts were let last
spring for the paving of about So blocks
it was decided to give the Topeka peo-
PIE the first chance at the bonds, and
consequently the Prudential Trust com
pany was authorized 20 take subscrip-
tions for them. in this way about half
of the 100000 issue was purchased.
People 10 Get First Chance.
In speaking of the change of the rate
of interest on the 100000 improvement
issue Mayor Green this morning as
serted that the people of Topeka will
have the first chance to secure them
through the city's agents. the Pruden-
tial Trust company. we shall supply
the small local subscribers first" said
he "and if there are any left others
Will have n chance to purchase.
"A 4H PER cent bond investment is
better than a per cent mortgage on
account of the taxes on the latter
Mr.. Mulvane, of the Bank of Topeka.
told me that they would take $4,000
" orth of bonds. but would hold back
until the people have had an oppor-
tunity to purchase.
Every one who holds a city bond is
interested in the city. 1t may be when
the 9th of August comes. the date set
for opening bids for the purchase OF
tEe bonds, that there won't be any
bonds to supply. and we would like to
have that condition exist. The bonds
will be ready for distribution about the
18th of August"