The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-13
TO OPEN CITY BOND
BIDS ON WEDNESDAY
Comptroller Looks for Ono Of
the Most Successful Sales
Ever Held.
CONDITIONS FAVORABLE
Policy Of Having But One Offer.
ing a Year Is Bringing
Good Results.

Bids for the c!ty's new SIS. 100000 TO-
sue OF "a per cent bonds will be opened
at o'clock on Wednesday afternoon In
the ONCE Of the Comptroller on the NTH
floor Of the Municipal Building. Comp.
troller Prendergast iool:s for one OF the
most successful sales In tho history o.
the city. He says that not for three
years has the market condition been more
favorable and that It is much better
than last year. when $4,000. 900 OF Y
per cent. bonds were oversubscribed by
13i. 900. 900.
Mr.. Prendergast said yesterday:
THE fact that a great mass Of money
Is awaiting the best kind Of investment
is the principal reason for the assured
success OF this sale. although there can
be no doubt that the policy inaugurated
by me OF having but one sale year has
established a much hrmer relation be-
tween the investing public and the city
than ever existed before.
Another strong reason Is to be found
In the fact that investors now have a
better understanding OF the citys actual
financial condition than was ever possible
In the early history of the consolidated
city. The reforms In bookkeeping pro-
cedure started during the latter part OF
the term OF my predecessor. MIR. Metz.
and which we have almost completed by
this time. have produced a healthy eff
feet in the public nlnd regarding the
conduct OF the city's financial affaiis.
Nor IN any fair statement could 1
possibly overlook the fact that the much
higher conception Of public adn,inistra-
ton inaugurated during the last ad-
ministrntiVn by Mayor Gaynor and his
associates. and to the contamination Of
which Mayor Mitchell is giving his eS-
celient talents ana experience. have pro-
duced very marked effect upon the
financial interests of this city"
Since Mr.. Prendergast took hold OF
the Finance Department the city has had
to 20 into the market only once ii year.
Before 1910 there were sometimes as
many as three bond sales year.
The sale in 1911 was on January "a. and
was for $50, 900, 900 OF ~. per cent bonds
running for fifty years. The issue was
very largely oversubscribed. The total
amount bid reached sS26.32:.oUo In 5,i
bids OF these 23t were successful and
thc average price was 10000. The con-
ditions were not especially favorable. Al
about the same time the Pennsylvania
Railroad announced a stock Increase Of
500. 600. 900.
ne safe OIL lSls, which OtCuITtu vi
May I, came in the heat of the political
controversy between Theodore Roosevelt
and President Taft. the effect Of which
was to confuse the money market TIL.
bond issue was for the same amount as
that OF 1914 and was at the same rating
This issue was also oversubscr. bed NOR
than four times The average price
cured by the city was 100 AZ.
Last year the city sold its bonds in
the face Of adverse conditions. In the
same month other cities asked the inves-
tors to buy SO, 600. 900 worth of bonds
but were refused, and the following month
issues aggregating 100000 of munich
pal bonds failed. The new tariff was
under consideration and the investors did
not know what Congress was contcm-
plating The average price was lo0.l37.
the lowest In recent years. but the citys
credit stood the test where other cities
failed.
one element which males the OUTLOOK
satisfactory is that New York city bonds
are absolutely tax free. According 10 the
Charter city bonds can be taxed for State
purposes. but as n matter of practice tn
city pays the State impost on its bonds
They are also exempt from the Federal
income tax.
Judging from, inquiries which have al
ready reached the Finance Department.
there will be large number of foreign
bidders