South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-05-28
CITY FAILS TO
SELL BONDS AT
PROPOSED RATE
Officials May Appeal to Oil
yer and Studebaker
Factories.

Failure OF the city Thursday 10
sell It's $500. 900 I'VE and one-quarter
percent interest bearing municipal
bond issue may force the municipal
ity 70 appeal 10 the Studebaker cor
porauon and the oliver Chilled Pillow
works 10 buy the bonds. according TO
city officials Thursday
There was only one bidder for the
bonds. the Harris Trust q Savings
bank. Chicago. who asked S11,640 in
commissions FOR the purchase OF the
issue Upon the advice OF City Atty.
Thomas W. Slick, the bid Of the
Chicago bank was rejected by City
Controller John A. Swygart. The bid
OF the Harris Trust & Savings bank
was opened az II o'clock Thursday
morning by the city controller. The
bank offered 10 take the bonds but
asked that il be paid "a commission
OF SI1.64O.
Plan More Water Service.
The money 10 be derived from the
sale OF the bonds was 20 be used
principally In paying for water serv-
ice extensions demanded by the in
dustrial expansion OF the city.
City officials declared following
the rejection OF the Chicago banks
bid that IT Is probable that an APP
peal Will be made u the Studebaker
corporation and the Oliver interests
10 take a municipal bond issue I'm
the amount Of the issue for the sale
81 which the bid was rejected Thurs
day.
Make Tentative Offers.
City officials say that these two
industries are the ones TO be most
benefited by the water service ex-
pansions 10 be made, and they say
that tentative offers % go 10 the as
sistanCe OF the city in its present fl
nancial difficulties was made by the
head Of one OF the industrial plants
OF the city at the time another bond
issue at four and three-quarters per-
cent interest recently remained un-
sold owing TO a lack Of bidders for
those bonds.
City officials, however, readver-
tised for bids for another issue Of
100000 with an increased rate of
interest IL was for this issue that
the Harris Trust & Savings bank
submitted its bid Thursday morn
ing.
Planned Expenditures.
Out OF the 100000 that would
have been derived by the city if the
bonds had been sold. the water de-
partment was to pay $4,000 for
water pipe already ordered and now
pending shipment Instructions. $50
600 for additional equipment at the
central pumping station 10 bring it
up from a 100000 gallon daily
capacity 20 a 100000 gallon daily
capacity. and 100000 for addition
al equipment at the north humping
station In addition to these expen-
ditUres. the water department owes
the track separation fund $145,000.
OF this latter amount the water de-
partment still has on hand $35, 200
which water department officials
say will be used in making what i'm
prOvements that amount Of money
will cover.
To Solicit Aid.
In the meantime city officials say
that they will take up the matter Of
soliciting financial aid from the in
dustrial plants Of the city. This aid,
the officials say. will Be merely the
industrial plants taking over the
Cfty's bonds az the FIVE and one
quarter percent interest.
The bonds for which the bio Of
the Harris Trust & Savings bank
was rejected Thursday We're divided
jntO four series. s10O,O 600 due in five
years, 100000 in 10 years, 100000
in 5 years and 100000 in 20 years.