Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-01
SIX MILLION.
TO Be SOLD IN
0PENMARKETS
This Amount Can Be Dis
posed Of at Premium,
Commission Says.
LEAGUERs' EFFORTS
TO TIE HANDS FOILED
Securities to, Be Delivered as
Proceeds Are Needed Y
By the State.
lHerald Special SerYice.l

Bismarck, N. D., Dec. Mod
ification of the bond sale con-
tract negotiated by the retiring
league industrial commission on
the eve of leaving office has been
secured by the new industrial
commission, and details of the
new agreement were completed
at noon today. H..
Through the negotiation of the
new contract, the industrial COM
mission believes it will be able to
save great deal of money to the
state. Although it is not satisfied
with the deal made by the league
commission yet it believes that
much has been accomplished, in
the new agreement.
The league administration con-
tracted tsl a total Of $l2,30O,-
900 of Bonds: to Splitter, Rorick
and Company. ts; ,;S'
.sUnder the new agreement $8s-
.J5W 81 ' thle kinioslnt Is: with
drawn from the contract and il
necessary to be issued later can
be sold in the competitive market
for premium, the new admins.
tration believes,
Withdrawn from the former
contract are $4,500, 900 real estate
bonds, 1000, 900 mill and elevat-
OF bonds and 100000 home
builders bonds.
Delivery as Needed.
Another feature of the new agree
nlent which was concluded with the
representative of Splitter, Rorick and
Company, is that the bonds will not
he delivered until real estate bonds
are ready to be made. money is need
cd in the mill and elevator construc-
ton, or for cleaning up the debts of
the Home Builders association. I'm
der the former agreement a great
portion of the bonds would be deliE-
cred before the money could be used
thereby causing the state to pay a
great deal of additional interest mon
ey.
The new contract to be drawn up
will be directly between the indus
trial commission and the bond com
pany. instead Of through the Bank OF
North Dakota.
Immediate Funds.
Five hundred thousand dollars OF
real estate bonds will be taken imme-
diately at par and at SIX per cent
interest. The league commission had
agreed to sell this amount in its first
, contract at per cent discount. Loans
will be made Immediately from this
amount.
Under the new agreement the home
building series, mill and elevator an6
real estate bonds are also sold at par
offers to purchase North Dakots
bonds at par and at five, and hall
per cent interest have been made re
Gently and the bond market has eased
greatly. The former industrial com
missions real estate bonds contract
extended over a period of fourteen
months. Within this period, If new
bonds are issued. the state admins
tration believes they canaibe sold a.
more advantageous terms
The old contract provided for thu
sale Of $1,OOO,o00 home builders
bonds. The new contract provides fol
the sale of 100000 of these. The ad
m;histration hopes it will be able t.
clean up the debts OF this association
with 100000.
Hampered by Old Contract.
The former administration had con
tracted to sell 32,090,00o mill and ele
yator bonds One million dollars Il
withdrawn from this contract. since
the entire amount of money could no
be used for many months, possibl!
more than year. and the admins
tration believes II will be able to sci
the remaining million dollars wortf
cf bonds at much better terms whel
L is necessary to issue them. Th'
same In true OF the real estate serie
bonds the contract providing for, al
bonds that can possibly be used in thu
next few months. 9
The first contract entered into be
tween the late industrial commission
and Spitzer, Rorick 'and Compan!
vas dated September II, 1921. ant
The terms Of the contract have al
ready been published. This was th'
contract, the legality %of which wa
,,uastioned in the case brought b!
cerfain taxpayers of the state in th
district court of Burleigh county, ant
fcontinued on Page 81