Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-29
R|PPEL TELLS WHY
He PROTESTED SALE
Broker Says Public Service
Passed Up His Bid, Despite
Higher Figure.

julius S. Rippel, dealer in local
investment securities, today issued q
statement explaining the financial de-
tails of his protest to the Public
Utility Commission against the APP
prevail by the commission of the sale
to the Fidelity Trust Company of a
large issue of Public Service Railway
Company bonds.
His explanation is as follows:
"In order to have the facts correct
ly stated regarding the sale by the
Public Service Corporation of $500, 000
North Hudson County Railway IS to
the Fidelity Trust Company. would
say that we had twice requested the
privilege of bidding on these bonds.
I'VE have In times past bought from
the company several of their smaller
issues of underlying bonds, such as
for instance. In 1904--$496, 900 Newark
Passenger Railway per cent. bonde
and again In 1905-s750, 900 OF the same
bonds; also, other issues at various
times.
knowing that the company had
100000 North Hudson County Rail-
way IS due January 1, and that there
was a like amount of 5.per cent. bonds
reserved to retire them. / called on
one of the officials Of the company
during the summer and again later in
the year, requesting an opportunity to
bid on the same. I was informed on
the last occasion that the company
was awaiting an offer from the Fidel-
ity Trust Company and that there
would be no competitive bids received.
Knowing the high character of this
bond, and the fact that 1t Is held
largely by savings banks, life and
q Ina AnanNinl l.
tions. generally, we knew 1t would
not be difficult to dispose of the issue
at par or very close to 1t. We were
therefore very much surprised to
learn that the bonds we're to be dis
posed of at 95, meaning matter or
some 1000 to the Public Service
Corporation.
"Mr. Smith CIV. e. r. Smith. of w.
e. r. Smith Company, N. Y.,) one OF
the co-partners in the transaction,
has laid stress on the fact that we
had protested after we heard the
bonds had been sold.
ut would be hardly necessary for
Mr.. Smith or any of the Fidelity
Trust syndicate to inform us what we
already knew could be done; that is,
that the bonds could readily be dis
posed OF at par or better. In fact, we
could have exchanged large amount
of the 5s and SIS coming due Janu-
airy /.
Had l not endeavored on two
occasions to make an offer for
these bonds, at price that
would have been nearer their value.
there might be some ground for COM
plant on the syndicate's part about
the ethical nature of the transaction.
When IL comes to ethics, / think the
fact that these bonds were sold with
out competition, and the company,
knowing that there was at least one
firm ready to discuss that part of the
transaction, suffice to say that later
IL was deemed advisable by the pur-
chasers to raise their bid to 81.
I'VE have been in this business for
twenty years, making q speciality of
Public Service underlying securities,
such as these, and, in view Of our
past purchases from the company, we
felt justified in assuming that a COM
petit,ve bid would be acceptable. Our
business is largely direct with in
vestors, and we are In a position to
Judge the market.
1.-THE Public Service Corporation
probably have the right to sell to
whom they please; but one would
naturally think that 1t would be to
the interest of the stockholders to
secure as large a price as possible.
I'm view of the above facts, we
offer no apologies in taking the stand
we have"