The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-11
BOND SALE SUCCEEDS
WITHOUT MIDDLEMAN
Third Avenue Railways ST.
100000 Offer Is Snapped
Up in Open Bidding.
DEMAND FOR S18,OOO,OOO
Bankers Doubt Success Of Novel
Test Is Proof Of Fu-
ture Utility.
DEMAND FOR Sl8,OOO,OOO

Bond marketing direct to the consumer,
without banker or other middleman. sue
ceeded yesterday. when the Third Avenue
bonds were sold. 1t would have taken a
bond offer OF about $4,000. 900 to supply
all the bidders.
An average price Of s3.ol37. which 10
said to be a full point higher than UNDER
writing bankers would have paid for
them. waS obtained in the final awards In
the open bidding.
The pronounced success Of the expert
ment boosted all Third Avenue securities.
The old bonds OF the same issue sold on
the Stock Exchange at SAT-, ~ points
above the closing price on the day before.
The adjustment IS also advanced a point
and the stock gained 4 I. points.
President Frederick ". whitr!dge was
delighted.
Result PIenses Whitridg-.
PLEASED down to the ground" he said.
suits me. II did me good
The plan of direct sale was President
whtridge's own. He launched II with the
observation that the spirit OF the times
| seemed to demand the elimination OF
| bankers profits in the sale OF public utii-
lily securities and that the plan deserved
a trial. II there was a real demand for
| SUCH uITeCt Sdit, ne suIu, unOOuDteOIY the
| public would buy his 100000 OF bonds
II not at least the stockholders and public
would have had an opportunity to show
| their attitude.
Mr. whitridge would not draw conclu-
| sions yesterday about the general princi-
| pie OF direct sale.
II don't generalize," ne said. ct have
| sold my bonds at a better price than I ex-
pected and at a higher price than I could
very well have got otherwise.
AS for the same method In future is
sues. ! am not prepared to say anything.
! mind my own business and don't mind
| the business of other people"
| will YOU follow the same plan II you
sell sio.oo0,oOo bonds?" Mr.. whltridge
was asked.
IT am not selling SO, 600, 900"
succ-ssfuI Bidders for Ronds.
The bonds were awarded as follows :
Bernard NJ. Baruch, $1,000. 900 at sS.53
]. w. Seligman Co. and Clark,
| Dodge Co. Jointly 100000 at SO
Lazard Freres. sl,506. 900 at s2.sl5:
George Ehret. large stockholder in the
company. $4,000 at So: Seasongood &
Haas. s450.000 at s2.s3.
There were In all ffty-one bids among
them three for all or any part OF the
issue. at the prices respectively, S2.sl5.
s2.7S and s2.s75. The lowest bid was
~.
President whitridge said that there
were large number OF bids for small
amounts OF bonds. among them lots Of one
or two bonds, and a considerable number
OF applicants for Ave bonds. About four.
fifths OF the hfty-one bids. President
whitridge said. were for lots Of less than
$4,000.
Comment In banking quarters was that
the Third Avenue had got a good price
for Its bonds 1t was said that the pro-
nounced success Of the experiment by nc
means demonstrated the permanent safety
Of this sort OF financing II was pointed
out that the successful bidders were moi
small investors but capitalists who could
buy in large blocks. II was also said
that at least four OF the successful SIX
bidders were bankers and bond dealers
| who would resell to the investor