The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-07
BONDS SELL HIGH
Issue of S152,9OO for Topeka
Sold at Par.
Prudential Trust Company Is
Successful Bidder.

Topeka municipal bonds. which have,
long been regarded by the financial
world as exceptionally desirable securi-
ties. maintained that reputation Tues
day afternoon when $152.900 worth of
general improvement bonds were sold
lat par. The bonds bear per cent
interest, and run from five to ten
year,.
The successful bidder was the Pru-
dental Trust Company, represented
by I. E. Henry assistant treasurer and
bond officer, which made the flat par
offer with no discounts or other
strings attached. There was a total
of nine bidders in the field and while
all of the other eight, with one eXcep-
ton, bid par, their offers carried GER
tain reservations.
According to Frank Z. Stevens, COM
missioner of finance and revenue, the
city commission is highly pleased with
the sale of the bonds and is particu
larly glad that the best bid was made
| by a Topeka firm. While Topeka
bonds have always demanded an at
| ractive figure and 100000 worth of
actually brought a premium, yet I'M
der the present financial condition,
members of the commission say that
a par bid was the very best they
expected. Waterworks improvement
bonds are slightly more attractive be-
cause they run for period of twenty
years and many of the city's bonds
bear " per cent interest. Compar-
| ing this with per cent interest which
| is drawn by the bonds sold Tuesday,
and considering the fact that they are
for a shorter term, the commission is
! highly elated with the terms of the
sale.
Topeka Bonds in Demand
! When asked today why the Pruden-
tial Trust company could offer par
for Topeka bonds bearing only per
cent interest, and running for a COM
paratively short term of years, when
bonds of other cities bearing 6 per
cent interest can be had at the same
rate, Henry said it was a case of mot
how cheap but how good" and that the
Topeka bonds were worth the differ
ience. Topeka bonds are always in
demand, he said.
At the city hall it was stated that
! Topeka is one of only two cities in
Kansas whose bonds meet all the re-
quirements of reserve and savings
banks,' not only in the middle west
| but in the east as well, including the
New England states.
The sale Tuesday was the final dis
posal of what remained Of the cost of
the city'S 1921 paving iprogra m,
amounting to $280,000. Approximate
ly $1,000 of this amount was paid in
cash by property owners before Au-
gust 15. leaving a bond issue of about
$269,000 to cover the years paving
bill. This amount dwindled again
when approximately $4,000 was
taken up by the city's various -sinkin g
bonds for old city bonds which ex-
pired September 1, leaving $152,900
worth of bonds which were taken care
! of by the lump sale Tuesday after
noon.
Bids Offered by Nine Firms.
The names of the nine contesting
| bidders, their bids, together with res
lows: The Guaranty Trust company,
of Kansas City, bid par, less $7,25S,
for legal expenses and handling
| charges; Prescott and Snider, of Kan
and other expenses incurred; Fidel-
| ity National Bank and Trust company,
of Kansas City, bid par, less s4,450
commission; BrownCrummer. of
Wichita bid par, less S4,490 commits
sion; v H. Branch, of Wichita, bid
Title and Trust Co., of Wichita, bid
par, less 5000 for cost of printing,
attorney fees and other expenses;
Central Trust Co, of Topeka, bid
mission; Guaranty State bank, of
Topeka, bid par, less S5,S05.63 com
mission; Prudential Trust Co., of To-
peka, bid par or $4,000 without
! reservation.
All of the bids provided that the
money would be paid the city on esti-
mates as furnished by the engineering
department at the end of each month,
or in other words, the city will get
the money as fast as it needs it.
According to Wilbur A. Stanfield.
commissioner of waterworks and
lighting, approximately 1885,
worth of waterworks improvement
bonds will be offered for sale some
time this fall or before the first of
the year.