Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-10
SCHOOL BOND ISSUE
BRINGS HIGH PRICE
Bids in Montgomery Equiva-
lent to Par, Despite In
settled Market.
BY WILLIAM ]. WHEATLEY.
stan Correspondent of The Star.

ROCKVILLE, Md, April 1o.-When
the bids we're opened by the Montgom-
cry County commissioners yesterday
for the sale of the $475,000 school re-
funding bonds, the officials were agree
ably surprised at the price offered, par
ticularly in the face of a high call
money market. Although the county
officials believed that they would not
get more than $95 on the 500, on ac-
count Of the market conditions, the
price quoted by the successful bidder
was equivalent to par.
The National City Co. of New York
bid $93,8099 per 500, plus the accrued
interest to the date of delivery, which,
the bid stated, was equivalent to par
and accrued interest, less discount of
$5,652.98. This company was awarded
the entire bond issue. There were only
two other bidders, Harris, Forbes g. Co.
of New York, at $98.559 and accrued
interest to date of delivery, and joint
bid of Strother, Brogden & Co., Macku-
bin, Goodrich a. Co. and the Continen-
tai Co. of Baltimore, at $98.O606.
Regarded Emergency Measure.
This is'the school bond issue, declared
an emergency measure by the LegiSla-
ture, to refinance 1924, 1927 and 1928
school construction and school site pur-
chases, Had it not been that liquid
funds of the county were tied UP in the
lew construction, which was financed
on promise from the legislators that
they would get through such an issue,
and that the proceeds were needed to
release these funds to carry on the or
binary business of the county, includ-
ing the payment of teachers salaries
for the remainder of the year. county
leaders say that they would not have
advertised the bonds at this time be-
cause of the condition of the market.
While the price received was par, it
is known that the county officials will
not advertise other bond issues approved
by the General Assembly until there
is some relief Of the market conditions,
so that a premium may be obtained on
the bonds, as was done on those sold
last year. The bonds of this county, it
was said, have a very high standing in
the market, because of the rapid in
crease in the county wealth, and this
is indicated by the fact that even par
was received for the bonds sold yester-
day.
ASS Per Cent Net Interest.
Berry E. Clark, clerk to the county
commissioners, said that he had been
informed by a representative of one of
the unsuccessful bidders that the price
at which the, school refunding issue
was sold would yield a net interest of
ASS per cent. He said that the man.
ager of the bond department of the
Baltimore firm stated that Montgomery
County received particularly fine price
for the bonds, and indicated that they
were higher than the Atlanta, Ga, S
per cent bonds and the Buffalo, N. Y.
city bonds sales, during the previous
48 hours.
Mr.. Clark further pointed out that
the act authorizing the issue made 1t
optional with the county commissioners
to fix the rate of interest at not to
exceed 5 per cent. They fixed the rate
at Az per cent, but the bids indicate
that they will yield ASS per cent. This,
he pointed out, was a saving to the
county of interest at the rate Of forty
five one-hundredths of / per- cent.
The proceeds of the bonds sold yes
terday are to be used either for re-
financing the 1924. 1927 and 1928 con-
Struction, or to pay some of the bills
still standing for this work, and on the
following projects:
Projects Included.
Construction, addition and repair OF
the elementary school at Bethesda,
$17,487; construction of a high school
known as Bethesda-Chevy Chase High
School, $l23, 65775; construction and
addition to Takoma- Silver Spring High
School, $50 255.47; construction and adj
dition to the East Silver Spring Ele-
mentary School, $14 ISL SO; construction
and addition to the Takoma Park Ele-
mentary School, 52,336.67; construction
and addition to Glen Echo Cabin John
Junior High and Elementary School,
$l3,286.20; construction and addition
to the Poolesville High and Elementary
School, $9,791.02; construction and adj
dition to Damascus High School, S.
263.59; construction of Germantown
High School, 81, 1896; construction and
addition to Chevy Chase Elementary
School, $6,425.68 construction and adj
dition to LaytonSville Elementary School,
$1,572.65; construction of Woodfield
Elementary School, $247.57; construc-
ton of the Somerset Elementary School.
$43, 1920; construction and addition
to Dickerson Elementary School, 81
1882; construction and addition to
Rockville High School, $45, 60007; fees
paid for daily inspection and super
vision of work of construction, ST.
231.81; electrical wiring and equipment
constructed for and installed in the.
above schoolhouses, $3,347.76; compile
ton of work authorized in school bond
issue of 1924, $l1 ,92802; completion Of
work authorized in school bond issue Of
1927, $6,9O512; purchase /of furniture
and equipment for the above school,
houses, $l7,29036; purchase of BUSES
for transportation of students. $500;
purchase of school site at Somerset,
$4O,085; purchase of an addition to
school site at Gaithersburg, 40085.
The remainder of the issue is to be
expended by the Board of Education of
the county, with the approval of the
county commissioners, for the better
ment of the county school system.