The Redwood gazette., 1936-11-26
BoardMakes
Good Sale of
School Bonds
2Kz % WITH $500 PREMIUM
LOWEST PRICE ON
RECORD HERE

Believed to be the lowest rate
at which bonds of school district
or municipality of Redwood
county have ever been sold, the
school board of independent dis
trict one disposed of $4,000 in
bonds to help finance the new
high school building here Friday
afternoon.
The rate is two and one-half
per cent interest while the brok-
ers are to pay a 5000 premium
and have agreed to furnish the
bonds and to pay for the approv-
ing legal opinion. While the ex-
pense of these two items has only
been estimated, the district saves
several hundred dollars by the
provision. The Minneapolis firm
of Junell, ,-Driscoll, Fletcher, Dor
sey and Barker is to pass on the
legality of the issue.
Rather spirited bidding resulted
at the Lincoln school Friday night
when representatives of IL firms,
after examining and commenting
favorably on the operation and
bookkeeping methods of the dis
trict, were called on to submit
their figures.
Starting at three per cent, the
oral bids became more and more
favorable as the representatives
made new offers in turn, one
standard stipulation in such cases
being that any bidder who passes
twice is out of the running. Even
tually the rate got down to two
and one-half per cent and the
amount of the premium was the
remaining factor as it moved up
with each bid, sometimes with a
So or $5 boost and at times with
quite substantial advances.
!, The bonds were finally sold to a
syndicate of four firms, Harold E.
Wood Company, Kalman Com
pany, Bigelow, Webb and Com
pany and Piper Jaffray and Hop
wood.
Other firms and their best bids
were: First National banks of
Minneapolis and st. Paul, $500
premium; Wells, Dickey Company
and Alison Williams Company,
$435 premium; George c. Jones
company and Justus F. Lowe,
$375, premium and Northwestern
National bank with $130 pre-
MUM, all the above offering two
and one-half per cent. The Citi-
zens State bank of Redwood Falls
dropped out of the bidding at two
and three-quarterS per cent.
The first $4,000 of the bonds
will come due December l, 1889
with $4,000 bonds retiring each
year thereafter until the issue is
paid off in 1947. The Lincoln
school bonds of $175,000 will be
due January /, 1889 at which time
the sinking fund now accruing
will make it possible to pay off
about 100000 which will leave
$500 to be refnanced, with
principal payments to start in
1948. If the board at that time
sees fit to continue payments on
the $4,000 per year basis, the
district can be out of debt 20
years from now and have an eX-
cellent school system.
The city of Redwood Falls re-
Gently sold $21, 900 in certificates
of indebtedness for street treat
ment at two and one-half per cent
with a premium of $50, but is to
pay for the bonds and attorney
fees. However these bonds have
a callable feature which makes
them somewhat less attractive to
buyers although this was deemed
valuable to the city as it has pros
poets of getting funds to pay the
bonds before they. mature.
The following amounts for in
terest and retirement of issue will
be included in school district lev
les of future years, payable the
year following in each case. 1886,
$2,125; 1887, $2,125; 1888, $7,125;
1899, $4,000; 1910, $11,75O; 1941,
$11, 500; 1912, $11, ESQ; 1943, SILL
600; 1914, $1O,75O; 1945, $1O,5O0;
and I946, S10,250.