The San Francisco call., 1910-07-15
BANKS BEGIN
TO PURCHASE
GEARY BONDS
Fiibernia Makes Tender for All
That Are Left of Pres
emf Issue
Quick Sale PIeases Officials of
City So Much That They
Will Offer More
Sz40,000 Worth of Securities TO
BE Placed on Market Early
in September

w from the Hibernia- bank for all
the bonds that are left the full
S2eo0o0 Of the Geary street issue has
been subscribed The city authorities
are so well pleased with the sale that
they are planning TO put an additional
$4,000 Of the same securities on the
market early in September. This Will
bring an even $500 600 with which to
initiate work on the line.
After the subscription list had been
completed offers were received for Is
more Of the $1,000 bonds. The labor
unions were prepared 70 bid for an
amount that would have carried the
total oversubscription TO 100000.
There have been many rumors of
various sorts to explain why the banks
. held aloof from the bonds There had
been some suggestion Of a united senti-
:. ment to discourage the public owner
snip Of such utility. It became ap-
parent. however, that If the banks did
not bid their clients would withdraw
their deposits and invest in the bonds.
The highest rate paid by the local saw
fngs banks is 4 per cent. The bonds
carry AZ per cent.
When the city government opened for
business yesterday morning $4,000
worth OF the bonds remained TO be dis
posed Of Individual investors applied
IN the sum Of $1,000. leaving $3.50 on
fand. This was the situation at 10
O'Clock yesterday morning. At that
hour an official Of the Hibernia bank
..telephoned 10 Clerk Hagerty of the
board Of supervisors. stating that the
-. institution desired all the bonds that
were lest 4 bid. was later submitted
at par.
Bonds Bring Premium
When the totals are compiled it will
p l,e shown that the bonds have brought
premium Of some 5000.
: We arc very weIl pleased with the
b. sale said H. A. Mason, the BOND ex-
Spert Of the board OF supervisors Those
people who have bought the bonds have
. .1nade good Investment. The issue VIII
certainly bring premium. Every per-
son who has purchased viii be able TO
sen at a profit if he desires.
~ During the day a conference was held
between the finance committee. tie pub
lie utilities committee, the city engineer
and a representative of the city attor-
= news Office. Present were Supervisors
p Kelly. Mclaughlin, Pugh. Loughery,
city Engineer Manson and Assistant
city Attorney Nourse. The discussion
turned on the next move and the senti-
Ylent prevailed that active work should
be begun at the earliest moment Man
son rccornmended that the power house
sites be purchased without delay.
Nourse assured the supervisors that the
CITY attorneys Office would safeguard
every step with proper legal provisions.
II was proposed that. as a temporary
expedient an overhead trolley be used
It was explained that if this were done
temporary poles could be erected and
wires strung at small expense. The
cars. IL was stated. could be operated
for time on the present tracks. The
rails Of the existing line are seven feet
II feet between the rails The sugges-
ton was advanced that construction
could proceed on the wider gauge while
the cars were being operated over the
present road.
Po1cy Undetermined
10 definite policy win be outlined
however until a second conference, at
(which Mayor Mccarthy viii be present
Fhis conference viii be held Saturday
afternoon in the mayors Office.
Mayor Mccarthy expressed his salts
faction at the sale Of the bonds. He
stated that the rest of the issue would
he placed on the market as soon as
possible. He continued:
The entire bond issue of s2,0OO.OO0
win be sold and the Geary street road
;. win be built The people have decided
that they want the road. They have
voted the bonds, and we viii see that
they are sold. We viii carry out the
popular viii and give to this city in
Geary street as good a line as can be
p constructed.
?. The Geary street bonds are a fine
investment. They carry a good rate
:of interest and they are fortified by
the very best security-in fact, they
are the best in the world.
II am glad TO hear that She Hibernia
bank has subscribed for the remaining
bonds. I congratulate the management
OF that institution on its purchase. The
Investment viii prove not only bene-
fetal to its depositors, but 10 the insti-
:. tuition as wei.
II ] were the president of a bank