The Forrest City times., 1910-07-01
A FAT BROKERAGE FEE
Board Will Offer S710.000 Worth of Per Gent Bonds Brokers
 Will Get About S64 900

Memphis, Tenn. June 20.-The question of brokerage fee to be paid for the sa)e Of s7lo,o0o worth of five per cent bonds. the sale of which was authorized today at the annual meet Ing of tie St. Francis Levee Board, was the chief bone of contention in a prolonged discussion which preceded tue voting. The objectionable clause was embodied in the main resolution, which authorized tine president and the advisory board to employ broker to dispose of the bond issue which is 10 be used to retire the original issue Of e15o,o0O of six per cent bonds, made in ls9a, Of which 500 have already been retired. The resolution was finally carried lj to i
 The fee ta be paid the broker for sale Of the bonds was, according to the resolution, left to the discretion .of the president and the advisory board, it being specifically stipulated, however that it should in no event exceed the ratio paid as brokerage on the s325,000 bond issue disposed of last November This fee amounted 10 S30000, or about nine per cent. Figured at this basis. the maximum fee which may be paid under the reso- lution is nearly S64 .00o, which d num- Der of members declared would have the effect of running the cost of the bonds from five per cent 10 something like five and one-half per cent.
 Following the passage of the resolu- ton authorizing the bond sale, these who favored its passage adjourned from the Hotel Gayoso to Mississippi river steamboat, which took them to the Arkansas side of the river, where the entire proceedings were ratified on Arkansas soil. This step was taken ln order that nc question might be raised as 10 the legality.
 Those who opposed the passage of the resolution in it's present form ar gued that payment of brokerage fee would have the effect of violating the law, which prohibits the sale of bonds by the Levee Board at less than par It was charged that the brokerage clauseWas merely asubterfuge whereby the interest on the bonds was increas- ed considerably beyond five per cent.
 Replying to this argument SUD- porters of the clause declared that legal opinions secured from Judge c. B. Wood, of Chicago and s. ]. Shep- pard of Memphis, both bond experts, indicated that the leyee board was en- tirely within it's rights
 Another fine point raised by the op- position was as to just what relation the proposed bond issue would bear to previous bond issues made by the board, with regard 10 protection of fered purchasers If it could merely be substituted for the original S750,- GOO issue and legally take precedence over tue three subsequent issues. it was argued then the bonds should easily be sold at 4 per cent. On the other hand it was argued that if the bond issue had to rank as a new issue and stands fourth in line with regard to its lien upon the assets of the levee board, then the sale of the issue may prove an arduous task at 10 per cent.
 Senator T. A. Turner as a member of the board from Jonesboro led the fight against the proposed sale of the issue of bonds of s750, ,000, as authorized by the last legislature at more than , per cent, Senator Turner gave as his reason that it was mere subterfuge for the avoidance of that statute which makes it felony to sell bonds for less than par