New-York tribune., 1912-04-18
CITY BONDS TO Be SOLD
,,c,,e Of Se5, 100000 Will Be
Disposed of on May 7.
DELAY MAY PROVE COSTLY
t,;oher Price Could Have Been
obtained Six Weeks Ago, Say
Dealers-Previous Issues.

.orncerent was made by Controller
,.nd.rgast yesterday that he would sell
-. an 100 Of "A per cent, fifty-year corporate
go n, the city Of New York at his office
:. the stewart Building at . o. m. on Tues
day. May &
This will be the largest bond sale ever
..,d IN the history Of the city. but it is
.ointed out that there has been no sale
nov for more than year and quarter.
n.csuse Of the passage Of the bill last win
-, nArmitting the Controller to sell reve-
.ns notes in anticipation of bond sales, It
t.s not been necessary to have bond sale
.oon.r. Tn delaying the sale an amount
estimated at more than 100000 has been
saved to the city in interest.
The Controller announced that he would
,sdeem these revenue notes at par. with
.,crued interest. on any day after the sale
Al bonds had been completed. irrespective
AZ the dates Of maturity OF the notes.
The Controller called attention to the fact
that the financial market was comparative
H hare OF city securities because Of the
length Of time since the last sale. The city
a are selling from par to par and one
,,ehth, and the Controller figures that on
the same basis the proposed 4As ought to
he worth ultimately more than los.
The bonds to be sold are TO be divided into
three classes-s25. 900 for various munich
nal purposes, s2O,ooo0oO for the extensions OF
the citys water supply, and s9ooOo,eoo for
rapid transit. The Controller thinks the
ccmng sale should net enough money to
last the city for another year at least.
-. e
TIL. last sale of New York City bonds
yss held on January "a 1911, when $780,
10000 of IA per cent 5o-year Corporate
Stock was oversubscribed more than hNe
times We allotment was made TO 2ol
eubscri. , the average price received be-
2 ing 1908. representing an income basis or
about 4207 per cent. The total sum re-
ceived by the city. sso,542,441. was only
1891 larger than the bid for all or
none" submitted by syndicate composed
Of ]. p Morgan & Co, the National City
Bank and the Frst National Bank.
The other sale of Az per cent city
bonds was that of March 21 1910. the
amount offered being s50.000,00O and the
maturity being fifty years, with an option
10 the city to redeem the issue i'll twenty
years. The average price realized on this
sale was 1928. a basis of 4.155 per cent
assuming that the city would exercise its
option of redemption in twenty years
The AIS Of 1860. on the Stock Ex-
change declined yesterday from 1925 to
1919. The AIS of 1861. the $50, 900 900
issue which are dealt in OH the Curb as
8 result of dispute between the city
authorities and the Stock Exchange man
agement over the engraving of the certif-
Gates, closed at 1919. against 1925 at
the close on Tuesday. The new bonds,
when issued" were quoted on the Curb
at 1908 61o1i4.
Delay May Be Expensive.
Prominent bond dealers expressed the
opinion Yesterday that If the new issue
had been brought out about six weeks
r ago a considerably higher price could
have been obtained by the city than IL is
likely now TO secure At that time, II was
said, there was an active demand for
high class bonds. and that demand was
promptly met from other quarters. rail-
roads and other corporations bringing out
large issues, which were rapidly disposed
Of at satisfactory figures. There was still
fairly good market for high grade bonds.
1t was added and the coming issue with
out much doubt would he favorably re-
ceived
In one quarter regret was expressed
that the state Of public sentiment made II
impossible for the city government TO
place its bond issues privately with
syndicate Of bankers. If this course could
he pursued, 1T was said great market
would he fc mi. I,
european investors. particularly those Of
France