New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-30
s71,OOO,0OO BOND
SALE NETS CITY
S9O3,3O9 PROFIT
Unusual Offering of $25,-
100000 Serial Issue an In
ducement 10 Investors.
TWO-THIRDS OF ALL
TO KUHN, LOEB & co,
Morgan House Outoid-Allot'
ment Will Be Split to Sat-
iSfy Small Bidders.

Controller Prendergast sold S7l,oOo,-
600 New York City bonds yesterday at
an average price Of l0l.272. This will
bring a premium to the city Of $685.
SO9.67.
This. the largest sale of bonds ever
made by this city at one time, consist
ed Of two issues $46,00O.ooO in 5Oyear
corporate stock and S25,oO0,OOO in Is
year serial corporate stock. Both is
sues bear ~ per cent interest.
The last bond sale was Of $65.000,ooo
fo-year bonds bearing a. per Gene in
teres.. which was held last April. The
Price received was 1Ol.45, the entire
issue going 10 a syndicate composed Of
Kuhn, Loeb & Co. and William A. Read
& Co.
The Controller, in statement last
night, said it was impossible to esti-
mate the effect Of the campaign
against the city's credit that had been
carried on by municipal vampires" II
unauest!onsbly mad some effect on the
people Of large, but the bankers and
large investors had not seemed TO have
been influenced at ali.
Two-thirds Of the bonds sold yes
terday were secured ~ a syndicate
composed Of Kuhn, Loeb & Co, Will
IAN a. Read & Co. and Kidter, Pea
body & Co. They got Sl1,35S,3O0 Of the
serial bonds ct 1O1165 and S33,000,000
Of the 5O-year bonds at l0l.O44.
The entire issue OF $4,000 900 was
sold al an average price Of 10l253, with
q yield Of 4437. The S25,000,000 serial
bonds brought an average price Of
l0l sos. with a yield Of 1927.
As usual, J. ?. Morgan & Co. were
unsuccessful bidders. They put IN
three bids for a syndicate including
the National City Bank, the Brown
Bros. & Co., the First National
Bank and Harris, Forbes & Co. One
was for all or none Of the S7l,OO0,OO0
at l00.s09, another for the $46,O0O,OOO
issue at 100000 and the third for the
s25,000,000 at 100000.
The bid Of the Kuhn, Loeb syndicate
was for all or any part, showing they
were anxious TO get some Of the bonds
II they could not get all.
There were PA bidders in all-less
than in any other except last year,
when the number was only las. There
were lO2 successful bidders for the
S46,000,000 issue and nineteen for the
$4,000 900
Under the law bonds may be split
into parts as small as SO. LYMAN
Hershkowitz distinguished himself yes
terday by making the highest bld-loo
for $40 worth He got IL, OF course.
Henry Freck will put SO worth away
in his stocking on bid of l03.33, while
Franklin w. Murray, jr., got $50 worth
As figured by the Controllers ex-
merits the total amount Of the bids was
s2246l0lO0, which meant that the
issue was oversubscribed three times.
In this. however, was not included the
S71 600 900 bid Of the Morgan syndl-
cate and q S25,000,00o bid of a syndi-
cate headed by Kountze Bros. THESE
were not counted because they also old
The Kuhn, Loeb syndicate bid l0l.l66
for the entire issue Of S25,OOO,OOO, put
got only half the issue at that price.
The highest bid for this issue was
l03. made by A. G. Oppenhelm, VINO
20. $3.50 at that figure.
Mayor Mitchell, City Chamberlain
Bruere and Fire Commissioner Adam
son sat with the Controller as he
opened the bids in his office yesterday
afternoon.
After the awards had been MADE
last night and the average prlce Cd
tanned figured the Controller sald:
"The Indications Of the last few
DAYS. however, convinced me that the
best we could expect would be approx
imately the prices received. l am
neither disappointed nor surprised at
the result. On the contrary, in view
OF the magnitude Of the offering, !
believe the prices obtained are good
ones. ~,
when one considers the condition
Of business. outside of that part OF
business which is concerned with sup
plying war materials. the lack OF IN
vestment interest is no. surprising,
have no hesitation in saying that the
element which produced the success
Of the sale was the Offering Of the
$4,000 900 Of serial bonds. This de-
parture from the usual city bond ofer-
ing was very helpful in giving invest
ors an opportunity TO vary the form
OF their city holdings.
II also must be understood tnat
this is the beginning OF the new pay
Gs-you-go policy, 70 which ! am GER
tain the public will become pleasingly