Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-02-10
HAWAIIAN BONDS
ARE WANTED BY
CLEVELAND FIRM
Ccontlnued nom page oneI

tionably enact q measure suggested by
Dillon. Thompson & Clay. specifically
legaiizing any delivery OF bonds. 50
long as II Is made by the treasurer In
office at the time OF the delivery.
As stated. the sale to Otis q Com
pany is at cent above par, or az
Sl00.01, which means q premium OF
10 cents rer 5000 Of bonds.
Territory Profits BY Delay.
BY holding off and waiting for this
offer, instead of letting the paper so AT
figures offered by firm last Octo-
Der, when Treasurer Conkling cabled
that the issue would be taken by one
concern at IS, the territory makes
an actual profit of 5000 on the $500.
900 lot alone. not taking into consid-
Grafton the balance of the Issue which
the governor proposes to hold for even
better terms.
Negotiations for Some Weeks.
The exchange OF communications be-
tween Treasurer Mccarthy and the.
Cleveland peop.e resulting In the sale
was about as follows:
On January 81. following some des.
ultory interchanges on the bond sub
ject, Treasurer Mccarthy sent forward
by mail q personal letter. accompany.
ing general circular prepared some
time ago by the governor. The gov
ernor's circular discussed the whole
bond matter thoroughly, though brief
ly, even including the question raised
by Dillon, Thompson & Clay.
On Saturday, February s, Otis &
Company wired an acceptance, in the
following words:
Would buy up to $3.50, 900 Hawaii
fours due 81. No option price mention.
ed, subject your furnishing billions
opinion. Delivery on or before March
5. If accepted wire quick
Two cables followed this yesterday,
coming In rapid succession. The first
reed:
IF we take $s5o,O00 bonds how
many viii be left unsOld. We expect
New York delivery.
The second said:
will take all unsold bonds to $780,
600 at 10 cents per 1000 premium,
New York delivery, March 5. Answer
quick with amount :.
Hawaiian Bonds Desirable.
Treasurer McCarthy's cable of today
definitely determines the negotiation.
These messages from Cleveland are
regarded as clearly showing the de-
STABILITY Of Hawaiian bonds as invest.
ment securities and the. eagerness Of
the eastern investors TO get tIlemi
The bulk of the issue remains In
vaults in New York City only enough
being brought to Honolulu to meet the
comparatively small local demand for
them Consequently the delivery at
New York will be fairly simple de-
tail of the sale.
The last sale was made here, $50.
500 going to Honolulu purchasers at
par, and under the law all additional
sales must be above that figure unless.
duly advertised.
The actual result Of this sale is that
100000 will be realized by the terri
tory ON March and Immediately afteT
that date for territorial improvements.
Appropriations for its expenditure
have already been made, BY act OF
the last legislature, and the money
viii 60 chiefly for work ION Piers 8, 8.
and 10, in Honolulu harbor, and the
shed, warehouse and approach for the
Kuhio bay wharf at Hilo.
The $50,500 realized from the pre-
vious sale Is being used now largely
for the construction Of the new ter
ritorial prison at Kalihi.
Zone big feature of the Cleveland
sale, said Treasurer Mccarthy to-
day, ."is the evidence of restored con-
fidence in Hawaii by eastern investors
and this undoubtedly viii have its
stimulating effect on business gen
orally here. 1t would seem to indicate
that eastern men are beginning TO dis
count the dangers to Hawaii Of the
sugar tariff situation. They apparent
ly are satisfied now that this terri.
tory's future financially is not serious