The San Francisco call., 1910-07-01
GEARY Street
BONDS Will Be
BOUGHT IN CITY
Local Investors Expected to Bid
liz Whole Cf the First
Allotment
Supervisors Make Announce
ment Describing Issue and
Conditions

When the first allotment of Geary
street bonds, amounting to $360,O0o, is
offered for sale on July II it may be
found that the entire sum will be taken
by local investors. There have been
some reports tina the big bond houses
will hold aloof through sympathy with
the idea of the private ownership of
such utilities, but these rumors have
no stronger Foundation than gossip.
There has been active bidding in the
past for utility bonds of the municipal
ity. The garbage plant bonds and the
water issues were sought by the big
gest concerns.
Even if the usual bidders should not
compete for the issue, it is believed
that local investors will bid in suffi-
cient number to take the full s26o. 900.
The bonds viii be issued in denomina-
tions Of $1,000 and carry AZ per cent,
interest which is 4 per cent. above
the savings bs.1lk rate.
Courts Endorse Bonds
The Geary street issue is reinforced
by a supreme court decision and thus
bears beforehand the full stamp of
validity. There have been many per
sons of modest mean who desired to
take a few hundred dollars worth Of
the bonds. I was first proposed to is
sue the amount in denominations Of
500. but this plan was abandoned 1t
has been suggested, however, to this
class of depositors ti'at they club to-
gether to acquire laser lots
The Geary street IS is regarded as
extsemeiy vaipable - sayinss Ranks
aud it is generally belies ed that there
will be much bidding from that source.
It is realized that the bond market
has been inactive for the last few
months. Eastern cities have found diff
hcutty in doat ting their issues and the
obstacles encountered by the big rail-
roads have been well understood. There
has been no recent issue anywhere,
however. that is regarded as so at
tractive an investment as the Geary
paper.
Bidders Enlightened
The board of supervisors put out an
announcement yesterday telling some
thing of these bonds. The announce
ment is in part as follows:
Notice is hereby given that sealed
bids for the purchase of Geary street
railway bonds of the city and county of
San Francisco, state of California. will
be received by the board of supervisors
up to the hour of o'clock D. M, on
Monday, July IL, 1910.
The bonds are described as follows:
Geary street railway bonds to the
amount of s26o,ooo. comprising 1a bonds
OF each years maturity from 1915 tc
1894 inclusive. All bonds are dated
July /, 1910, and are of the denomina-
tion of $1,000 each and bear interest at
the rate of 4 Y percentum per annum,
payable semiannually, January / and
July l of each year; principal and in
terest payable at the office of the
treasurer of the city and county of San
Francisco. or at the option of the holder
at the eitys fiscal agency in New York
city. Said bonds. under the law, are
exempt from all taxation within the
state of California.
May Choose Maturity
Bidders may bid for the whole or
any part of the bonds here offered and
when a less amount than the whole
amount offered is bid on, the bidder may
state the year or years of maturity
desired, but the board reserves the
right to allot bonds of other maturities
at the same basis rate as may be bid.
In case bids are received in excess of
the amount offered, preference in the
sale and a1lottmentswill be given to
the subscribers of smallest amounts.
THE Geary street bonds offered at
this sale are a portion of an issue of
81 100000 authorized for the purpose
of constructing municipal street rail- |
way in Geary street from Market street |
to Golden Gate park and the ocean. |
The bonds were authorized at a spe-
cial election held on December 80, 1909. |
and the vote on the proposition was