Los Angeles herald., 1910-07-12
BANKERS RALLY To
AID OF AQUEDUCT;
WILL BUY BONDS
Los Angeles Institutions voIun-
teer to Tide City Over Until
the Syndicate Pays
WILL SACRIFICE INTEREST
Rescuers Regard Present Exlg-
ency as TraceabIe to the
Power Companies
By t. SHELLEY SUTTON

BY T. SHELLEY SUTTON
Almost simultaneously and in most
instances without solicitation, several
of the leading banks of Los Angeles
Yesterday came to the relief OF the
owens river aqueduct bond situation
and agreed to help buy enough OF the
bonds to tide the city over until next
February, when the New York bond
syndicate, which has an option on the
securities, will make its next payment
and the project will meet with no
further setback from financial strin-
gency.
The action of the bond syndicate in
refusing to make a further payment,
under its contract, until next February
on the technical excuse that 1t already
has invested in more than $2,O0O,OO0 or
the bonds in excess of the amount
called for by the contract, and that,
as the bond market is now dull 1t can
not afford to make further payments
until next February, has produced
serious crisis which threatens the pros
perity and Industrial development OF
Los Angeles, according TO several
prominent bankers here yesterday VINO
signified their willingness to come to
the rescue, although they state the
aoueduct bonds will not yield them the
rate of interest they could secure from
other Investments; but they Will do all
in their power to see that the city
obtains the needed funds with which TO
hasten the completion of the great
adueduct which is to supply Los An
geles and vicinity with crystal waters
of the high Sierras.
The leading merchants, as well as
bankers, also have taken an active in
terest in the work of raising the $2,0OO,-
300 or more which the aqueduct man
agement declares is necessary to carry
on the project.
The bankers and business men of the
city are busily at work on two plans,
one of which Is for the banks OF Los
Angeles to purchase enough of the
bonds to continue the aqueduct work
until next February, and the other Is
for the banks, business concerns and
private individuals 10 subscribe to
fund of $2,O00000 to complete the work
independently of the bond syndicate.
To this latter fund the Los Angeles
Express has subscribed 100000 as IL
nucleus and a number of wealthy men
and large business concerns have
agreed 70 subscribe similarly large
amounts Several bankers yesterday
signifed their willingness to purchase
the bonds outright.
AVERY TALKS
Discussing the aQueduct situation, NJ.
N Avery, president Of the German
American Savings bank, in an inter-
view yesterday SAID:
"I believe that under ordinary cir
cumstances the New York bond syndi-
cate would have continued to make
payments under its option contract. al
though 1t already has anticipated the
purchase Of several installments OF the
bonds. Under the present condition OF
d the bond market the syndicate does not
reel disposed to provide more money
on the original terms, and the city
therefore is facing just such an emer-
gency as almost every business man Is
likely to encounter at some time in his
career.
1.-THE only thing for us to do is to
take hold of the situation philosophic-
ally and overcome the difficulty, al
though 1t may cost us some sacrifice.
This bank always has done its full
part in promoting the aqueduct enter
prise and now feels that this is an
emergency which should call forth a
prompt response from all who are in
terested in the welfare and prosperity
of the city, and we have expressed
our willingness to the aqueduct man
agement to take 100000 of the aque-
duct bonds, although we could derive
much better rate of interest from
other forms of investment"
j. F. Sartori, president of the Secur-
ity Savings bank, said:
'I regard 1t as extremely important
to keep the aqueduct work going as
rapidly as possible ! think the aque-
duct officials should have $2000,000 be-
hind them to make certain that moth
ing can interfere with their progress,
and | believe this amount of money
can be raised in Los Angeles. The
Security Savings bank stands ready
and willing to subscribe its share"
Similar opinions and expressions of
willingness were elected from r. j.
Waters, president of the Citizens Ma
tional; Mark G. Jones, president of the
Merchants Bank and Trust company;
o. ]. Wigdal, vice president of the
Home Savings; j. w. Phelps, cashier
of the American Savings; M. P. Sny-
der. president of the California Saw
ings; Marco H. Hellman, vice presi-
dent of the Merchants National; A. C.
Hupp, cashier of the Bank of Southern
California;; S. F. Zombro, president of
the Central Natio. al; Warren Gillelen,
president of the Broadway Bank and
Trust company, and from II. F. Stew
art vice president and general man
ager of the Southern Trust company,
all of whom stated in substance that
they considered 1t extremely essential
to the welfare of Los Angeles that the
aqueduct work should be continued
without interruption and that for this
purpose at least S2,O0O.000 should be
provided, either by subscription or
llOnA tAC PdANAl w ACSoi DAAhO cAANA
investors of enough of the aqueduct
bonds to carry on the enterprise.
SUFFERING DOUBTFUL
Whether the eastern bond market is
suffering from any unusual depression
seems to be a matter of conflicting
opinion. 1t was charged by Mayor
Alexander and other city officials be-
fore-the recent councilmanlc election
that the power trust was back of the
New York bond syndicate as a result
of the fight here against the exorbi-
tant rates of the local power COM
panies, to prevent the city from dis
posing of its aqueduct bonds in order
to delay the completion of the project
and thus retard the municipal power
tContinued Page Eighn