The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-12-15
BONDS SELL HIGH
Topeka Waterworks Bonds
Bring $4,7O5 Premium.
Many Financial Firms Bid at
Auction Sale.

! Topeka's city waterworks bonds to
the amount of 100000 bearing 5k
per cent interest brought surpris-
ingly large premium of $4,705 in auc-
, ton sale at the city hall this morning,
with close bidding by representatives
| of financial firms of Topeka, Wichita,
| Kansas City and Chicago. While no
bonds the city has sold ever bore such
a high rate of interest, no Topeka
bonds ever brought higher premium.
Col. John Dean of the Columbian
| Trust company, was the successful
| bidder
The high premium is regarded by
city officials as recognition of To-
peka's financial sta bility. Bonds sold
in other cities seldom bring such a
I high premium.
The premium of s4,7O5 was unex-
pectedly large, according to city Off
cials who had not anticipated that the
premium would go above $4,000
some of them even estimating that
the bonds would not bring more than
| $4,000 premium.
Bidding Is Active.
Thirty men interested in the bid
ding were present at the sale, with
eight active bidders. The financial
firms represented were the Columbian
Trust company, the Shawnee Invest
ment company, the Prudential Trust
company, the Central Trust company
and the Kansas Reserve bank, all of
Topeka; the Fidelity National Bank &
Trust company of Kansas City; w. R.
Compton and Ames-E -Emerich & Co, of
Chicago, and d. E. Dunn & Co., Of
Wichita. The final bidding above the
$4,000 mark was confined principally
to the Columbian Trust company and
the Fidelity Bank & Trust company,
eli
tial Trust company. The highest bid
/ of the Kansas City company was $4,-
! 701, and the highest of the Prudential
Trust company was s4,631.
! With the regulation auctioneer's s
I method of What am L bid, gentle
men?" "Oh. no, you're not thru, gem
! tlemen, these are fine bonds, of the
I finest town in the west, going. going.
going-thats right, make it higher,
/ gentlemen who will bid more;
GOING, once; GOING, twice
what do 1 hear? I knew you'd it,
etc, by Commissioner Wasson, with
the slow process of increasing bids by
amounts as low as so cents and 81,
with occasional jumps of s25, the un-
usually large premium was reached.
The auction sale was the first of it's
kind ever held in the city
/ First Auction Sale.
''This is the first bono sale at auc-
! ton Topeka has ever had Commits
sioner Wasson said after the sale. 'I
/ was doubtful about the wisdom of
such a sale, but am gratified at the re-
suit. did not expect the bonds to
bring more than $4,000 premium"
| The $50, 900 in bonds is only a part
of the bonds to be offered to finance
| the city waterworks enlargement and
I improvement with the remaining
$225.0O0 of the $525,00G voted in No
vember to be sold at a later date, prob
4 ably when the city water department
is able to buy bonds from its sinking
! fund. The division of the sale of the
| bonds. rather than the offering of the
lump sum of S525, ,000-had caused
bitter dissension among the city COM
missioners. Commissioner Wasson de-
| clared that the agreement to sell the
! entire amount had been unanimous
until time for the signing of the Off
cial announcement of the contemplat
! ed sale.
! On the other hand, Commissioner
Stanfield of the water department said
/ that he never had agreed to sell the
entire amount at one time. Commits
! sioner Wasson cast the only vote in
favor of selling the entire amount at
! one time.
Sold at Par With Interest.
The bonds sold this morning were
| at par with accrued interest, plus the
premium, and other terms of the sale
incMded the payment of $4,000 at
the delivery of the bonds; 0,00O
more by March 81. 1921; s25.OO0 more
/, or less per month; if more than that
amount is needed the city shall give
| the purchaser thirty days notice to
| that effect: the city to draw 5 Il per
i, cent interest on daily balances on un-
drawn account at the end of each
month; as fast the bonds are dis
posed of by the successful bidder, said
successful bidder shall replace said
bonds with United States bonds. Or
cash or such securities that will be
satisfactory to the city.