The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-08
CITY TO SELL % YEAR ALAS
WITH AN OPTION 10 REDEEM
THEM AFTER 10 YEARS.

Dsemea IN Per Gent. Toe sslgh ana wee
so1gne . saaFket Ter q security mat
WOuAd Not IluPt the Lsms Fears the
New Doasls win Ne 0uhAegibeSa Voc.
Comptroller PrsndsrgAst announced
yesterday that the go. O000oO Of cor
poEate stock TO be sold by the city this
month win bear interest AZ the rate %
az per cent. The Wall Street bond houses
which are understood TO still have left
on their hands per cent. bonds bought
from the city In the last three years
urged that the interest should he ~ per
cent; otherwise Il was threatened the
bond brokers would not bid
The Mayor. the Comptroller and the
members % the Sinking Fund Commis-
sion refused 10 consider the e. per cent.
hasis ana &c another executive meeting
held yesterday the commission decided
on q. per cent. Il was a compromise
between the city and the bond houses.
and the representatives % the bond
dealers agreed 20 IL only on the under
standing that the new bonds should he
redsemable at the Option Of the city after
twenty years. They will be Fifty year
bonds with the twenty year option in
serted
That power which 10 reserved by the
city Mr.. Pr~ndergast said yesterday
will mean that the new issue will not
interfere with the market Of the fifty year
4 per cents. To sell fifty year bonds now
&C ~ would Of course iniure the market
for the old stock. but the option clause
IL expected 20 overcome that difBculty
by making tho bonds 10 b. issued this
month less attractive for long term in
veetments
IL 10 understood that this compounds
10 satisfactory "a the bond houses and
that sssuraoss have been given that the
90. Ooo.O will be sutacribesefor. JP
Morgan. Jr.. was one Of the callers on the
Mayor yesterday.
Mr.. Prenderzast said Of the bonds:
This sale will enable the city to dischargs
all outstanding obligations for awards
which were confirmed zap 90 January I.
ieiO. and alaO meet promptly all contract
liabilities until tho fall This will put
the city on q sound credit baais in It's
relations with CONTRACTOR and the general
public. materially reducing future ccaas
There IL now awaiting payment APP
prOximatsiy slS.0O0.0o in awards all OF
which have been confirmed by rhe Su-
prsms Court. In Amany cases the title /
10 the properties represented in these
awards was vested in the city five and all
years ago. Moneys are due To persons |
who have b~en Invested ~ their proper
ties. no payment having been made. and |
In NOnne instances they have bssn reduced |
10 ahsJrute peunry. The city should |
under ordinary circumstances he in q
position 70 discharge this and all other !
obligations with reasonable promptitucie. |
Further. nine-tenths Of these awards are !
drawing Q per cent. interest. The advan- /
taee to the city 81 liqu,dAtinE this very
heavy item bsqueat Red by h. last admin
istratiOn n 40 obvious a. 10 require no
ftGrt her comment
The Compt roller SAID that so many
other liabilities now ciAss~d ~ debt will
he wiped ont with the proceeds ~ these
bonds that. considering AlsO that si7 .OOo.-
OoO Of the bonds are for water supply and
don't count in estimating the debt limit
the net decrease 81 the citys borrowing
bonds - .OpO 0o are for rapid transit ratl- |
roads and tS7 .Do.oNn for general pur-
poses.
Mayor GaynoT in a letter he sent y~-ter- |
day TO Comptroller Prend.rgast referring |
Ia the statement izs'i~d hy the Comp |
trollsF oE Sunday ou,I'ninR 'hs city's !
present financial condition sad.
allow the Mayor 10 thank Won heartily 1
for your clear and able statement 81 The |
citv's financial condition. published to-day !
There 10 no safer security IA the world than !
q bond % this city. a. Won show The more
than loose talk about the "ity'r credit dur |
ing the last fe~ years - much to b. re- !
srettsd. The Constitution Of the state pro |
vide~ that tho debt Of the city Caa never |
exceed 10 per cent. % the real estate vahIa-
ton on the city 'ax rolls
In that way. and in thar re-Dect alone
he bonds Of the city tor corporate stock
- the accurate phrase isl are a. safe q. real I
estate nrst mort cages on 10 per cent of 1
the value Of the real estate covered by them \
In addition TO that they have back Of them
the taxing power az the State for the nay
Tnent 81 interest and principal. In addition /
to that the city owns In fee rimp.s real /
estate assets O9 the value II over o. 90
'ao. Oso. whereas lie net debs h only about
one-third 81 that sum. namely less than
sssO. ono. o0o. And finally. ~ you also point
out. our net CITY debt does not exceed the
total OF the city's revenues for four years
Notwithstanding al og this our ss~v
cent bonds sold last summer for IOOia
wfsn the bonds of baltimore. for inst ance.
sold for los ~. and the bonds Of other cities
sold equally well This was caused by loose
and baseless talk concerning our financial
credit. 30 tmid 10 capital I feel certain
thar our bonds will now continue to rise
until they sell a. they formerly did naunalv
~ high a. those Of any city. ! hops thsS
even persons who want 20 invest only a
small amount will bid AZ the forthcomInR
sals. stDee the Law noW 10 that tho small bidder
10 sAsitled 70 have his bid complied with
II he 10 the Highest bidder. instead Of q bid