The true Democrat. [volume] (Bayou Sara [La.]) 1892-1928, 1913-12-13
State Sells
Bond Issue
at 96.l42
The Times.D Democrat:

Inc Tlmes-DemOcrat;
The State Board of Liquidation pro-
Yided for the sale of the entire new
bond issue of the State to a syndicate
composed of the Hibernia Bank and
Trust Company and the Whitney-Cen-
trail National Bank of New Orleans,
Potter, Choate & Prentice and Harris
Forbes & Co. of New York, at its SEES
sion Monday afternoon.
The syndicate's bid of 96.142 for the
entire issue of bonds amounting to
$10,567, 47O, bearing AZ per cent In
terest, was accepted by a vote Of four
to three.
Gov. Hall, State Treasurer Smith,
Secretary of State Hebert and State
Auditor Capdevielle voted to accept
the 96.142 bid of the New York-New
Orleans syndicate. Lieut.. Gov Bar
ret, Attorney-general Pleasant and
Speaker L. E. Thomas voted against
acceptance.
When the board met Monday morn
ing and went into executive session
for the opening of the bids, Gov. Hall
offered the proposal that the board fix
a minimum price at which the bonds
should be sold. This was objected to
by Attorney-general Pleasant and
Lieut.. Gov. Barrett, who offered the
counter proposal that the bids be open
ed for consideration and the board de-
termine upon its course of action after
the bids had been considered. This
question was debated during the en-
tire morning session without reaching
any agreement
When the board reassembled at 8
o'clock the bids were Immediately op-
ened for consideration without further
discussion of the question raised at
the morning session. The bids for the
bonds were found to be as follows;
The New York-New Orleans syndi-
cate, headed by Harris Forbes & Co.
and the Whitney Central National
Bank and Hibernia Bank and Trust
Company. $1O,5s7.47O for SIC, 1891, 522,O5
worth of bonds, or at the rate Of
$96.142 for 800 worth of bonds.
Syndicate headed by the Interstate
Bank and Trust Company Of New Or
leans bid $1O,567,47O for $11,123,652,63
worth of bonds, or $95 for 500 worth
OF bonds
8. J. Gianelloni of Baton Rouge, $751;
500 for $4,000 worth Of bonds; Louis
lana National Bank, Baton Rouge, $751;
900 for 100000; James A. Robin Of
New Orleans, SALTS for $4,000; DR..
E. p. Lowe, $4,000 for $4,000; Mysing
Bros. $98,275 for 100000 maturing af-
ter 1880, and $9S,275 for 100000 ma.
turing after 1925; George Schieb,
Sl05.50 for 500; Mrs. S. M. Munhol.
land par for $4,000 and State Treas
urer Smith $4,000 for the State Free
School
After the bids had been received
Lieut.. Gov Barrett moved that Gov
Hall appoint committee to investi
gate and report what the short term
notes could be sold for. Gov. Hall an
swered that he had already inVestigat
ed this phase of the matter and that
they would bring 9SA.
Lieut.. Gov. Barrett and Attorney Gen
eral Pleasant then insisted that the
sale OF the long-term bonds should be
postponed until the State had exhaust
ed its resources and secured bids or
the short-term notes, which the State
was authorized to issue under the new
Constitution.
I'VE cannot assume that we shall
sell the bonds at par when the short
term paper comes due, and we have
no justification for gambling with thu
credit of Louisiana" said Gov. Hall.
A vote was then taken on the mat
ter and the motion to accept the high
est bid received, that of the New York
New Orleans bankers syndicate, pre-
vailed.
Before adjournment in the Afternoon
the board adopted resolution proVid
ing for the payment OF the old out
standing bonds at the Office Of Harris
Forbes & Co., New York; the Whitney
Central Bank in New Orleans, the H
hernia Bank and Trust Company i
New Orleans, or at the Office of tn
State Treasurer in Baton Rouge, q
the option of the holder of the bond
The sale of these bonds raises tn
necessary money to retire the GU
standing bonded Indebtedness due Jal
/, 1914. The bonds bear Az per eel
interest against per cent for the OIL
issue. They are to run serially for fift
years, the state being authorized to r