The Bismarck tribune., 1921-12-01
MODIFICATION Of BOND SALE
CONTRACT ISSECURED BY NEW
STATEINDUSTRIAL COMMISSION
Amount of Bonds Required To
Be Delivered Immediately
Will Be Reduced BY New
Agreement.
SEE BETTER SALE POSSIBLE
Administration Believes 1t Can
Save Much Money in New
Deals in Future.

Modification of the bond sale con-
tract negotiated by the retiring league
Industrial commission just before
leaving Office has been secured by the
new industrial commission. Details
of anew agreement were completed at
noon today. ss u.s.
Through negotiation of new agree
ment the Industrial Commission be-
lieves it will be able to save a great
deal of money to the state, it is stated.
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 contract
ed to sell total of $12,3O0,OOO OF
bonds to Spitzer Rorick and Com
pany.
Under the new agreement $6,100,000
of this amount is withdrawn from
contract and if necessary to issue lat7
er can be sold in competitive market
for a premium, the new administra
tion believes. ....
Withdrawn from the former con-
tract are $4,500,000 real estate bonds,
$1,O0O,OC0 mill and elevator and $780,
900 home builders.
Deliver As Needed.
Another feature of the new agree
mcnt, which was concluded with a rep
resentative of Spitzer. Rorick and
Company, is that bonds will not be
delivered until real estate loans are
ready to be made or money is needed
in mill and elevator construction Or
for cleaning up debts of hOmebuild-
ers association. Under the former
agreement great portion of bonds
would he delivered before money
could be used thereby causing the
state to pay a great deal of additional
interest money.
The, new contract to be drawn up
will l,e directly, between Industrial
Commission and the bond company,
instead OF Though the Bank Of North
Dakota.
Five hundred thousand dollars Of
real estat, bonds will be taken i'm
mediately at par and 5 3-4 interest.
The league commission had agreed to
sell this amount in its first contract
at 5 per cent discount, it is stated.
Loans will be made Immediately from
this amount
Under the new agreement the homo
building series, mill and elevator and
real estate bonds are sold at par.
See better Offers.
Offers to purchase North Dakota
bonds at par and at five and half per
cent interest have been made recent
ly and the bond market has easel
greatly, it is stated. The former In
dustrial commissions real estate bond
contract extended over a period of Il
months. Within this period, II ne"
bonds are issued, the state admins
tration believes they can be sold a,
more advantageous terms. ~ a
The old contract provided TOR sale
of $1,OOO,OO0 home builders bonds
New contract provides for sale OF
100000. The administration hopes U
will be able to clean up the debts o.
this association with 100000.
The former administration had 6
contract to sell $2,090,000 mill ant
elevator bonds. One million dollar:
is withdrawn from this. Since the en-
tire amount OF money could not bt
used for many months, possibly more
than year, the administration be
lieves it will be able8to sell the million
dollars worth of bonds at much bet
ter terms when necessary to issue
them.
The same is true of the real estate
series of bonds, the contract prOvld
ing for all bonds that can possibly b
used in the next few months, it il
stated
First Contract Attacked
The first contract entered into DC
tween the late Industrial commission
and Spitzer, Rorick & Co., was date
september q, 1921, and the terms o
that contract have already been put
lished This was the contract tn
legality of which was questioned i
the case brought by certain taxpaS
ers Of the state in the district court O
Burleigh county, and which was al
pealed to the supreme court OF IN
State, of North Dakota. While the sui
was pending in the supreme court an
after it had been fully submitted 0
both sides, the late Industrial com
mission entered into another contrat
modifying and cancelling the nrs
contract. This la1t attempt wa
made November 21, 1921, two days DC
fore the late Industrial commlsslo
went out rof Office. Under this agre
ment the hands Of the incoming u
dustrial commission were enectuai
tied as the contract provided Uni
bonds of the real estate series, ban
series. Mill and Elevator series, ar
home building series that might
nut on the market during the ye'
1921 or 1922, should be handled exclt
siyely by Spitzer, Rorick & Co., al
at s per cent interest with the exec
ton of the bank series bonds agsl
eating $1,3OO00O, the interest
which was to be 5-S per cent.
The new industrial commission n
had the last two days, conferenc
with a representative OF the spltz'
Rsrick people and as a result, on
goth of November, entered INTO a ne
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