The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1917-03-03
cup TO" ATCHAFALAYA BOARD.
Lafourche Boards Share of Bayou
Lock Cost Provided For.

/ At special meeting of the board
of commissioners of the Lafourche
basin levee district, held here Tues
day, sealed bids were opened for the
purchase of $150,000 worth of five
per cent serial bonds to be issued by
the district for the purpose of pay
/! ing the Lafourche boards pro rata of
the cost of building lock in Bayou
Lafourche at Donaldsonville. The
highest bid was that of the Whitney,
Central Trust & Savings Bank of
New Orleans, which was par and ac-
crued interest, plus premium Of
$500. The proposal further provid-
ed for the payment of three and one
quarter per cent interest on deposits,
based on daily balances, or the is
suance of certificates Of deposit ma
turing six, nine and twelve months
after date, bearing interest at the
rate of three and one-half per cent
per annun1.
There being some question as to
the advisability of selling the issue
outright at this time, because Of the
fact that the Atchafalaya board has
not taken any steps toward similar
issue of bonds for the same purpose,
the board determined to await tenn
porarily some action on the part of
the Atchafalaya board and accepted
the bid of the Whitney-Central bank
conditionally under the terms of the
following resolution, which was
adopted:
'Be it resolved by the board of
commissioners of the Lafourche Ba-
sin Levee District, that the bid of the
Whitney-Central Trust & Savings
Bank, of New Orleans, for the pur
chase of the $150,000 bond issue for
lock purposes, being the highest re-
ceived by the board, be accepted con-
ditionally upon the Atchafalaya basin
levee board adopting at its next meet
ing resolution authorizing the sale
of it's portion of bonds for the build
inc of the lock at the head of Bayou
Lafourche, amounting to the sum OF
s15O,OOO; provided, that the said
Whitney Trust & Savings
Bank shall allow it's bid to remain
open with this board until March 9,
1917. in order that this board may
ascertain whether the Atchafalaya
levee board will adopt resolution
to advertise for sale it's similar issue
Of bonds. In the event that at its
meeting of March 8, 1917, the said
Atchafalaya levee board does not
adopt such resolution, then this board
reserves the right to reject the said
bid of the Whitney Central Trust q
Savings Bank. Provided further,
that the said Whitney Central Trust
& Savings Bank shall have the right
to withdraw it's bid when notified Of
it's final acceptance by this board.
"Be it further resolved, that the
president of this board be and he IS
hereby authorized and empowered for
and on behalf of this board to enter
into and sign an agreement with the
said Whitney-Central Trust & Saw
ines Bank to carry out the purposes
and objects of this resolution"
In order to meet the contingency
that might develop should the bid of
the Whitney-Central Bank be with
drawn, the board adopted the follow
ing resolution:
1Be it resolved, that in the event
the Whitney-Central Trust & Savings
Rank withdraw it's bid for the $780,
600 bond issue, this day conditionally
accepted, this board shall immediate
lv thereafter proceed to readvertlse
for sale the said bond issue, to be
disposed of according to law -,
The principal motive that actuated
the hoard in not finally disposlng OF
the bonds Tuesday was that, If the
securities are sold at this time, and
no action of a similar nature shouid
be taken by the Atchafalaya board II :.
would mean the unlimited payment OF
interest on the bonds representing
after the first year difference OF one
and one-half per cent on the amount !,
of the issue, since the board would
he required to pay five per cent IN
terest to the holders of the BONDS,
and would receive only three and one
quarter or three and one-half per
cont interest on the deposit accrulng
from the proceeds of the issue. Al
ter the first year this would entail a
net loss to the board of approximate
| " S2250 per anrlum.
Other bidders for the bonds were
as follows: Hibernia Bank q IrusI
Co., New Orleans, par, interest and
$40 premium, with two and one-hal1
ner cent on deposits; Interstate Bank
r Trust Co., par, interest and pre-,
n,iun, of s12O5, and three per cent
m m denosits: Tillotson, Wolcott Co,
| and Mercantile Trust Co., par, IN
tarest and premium of $1154; Splitter,
Rorick & Co., par and interest," less
s14SO for expenses and bonds.