THE FIEST $1,000,000 



9^ 



they should not be otherwise disposed of. It was also 

 deemed advisable in this way to extend the credit for such 

 securities, and the advantages which might accrue to the 

 community should foreign capital be employed in invest- 

 ment in the bonds were considered. 



On the afternoon of July 9, 1895, I went over the bond 

 matter quite fully with Mr. Morgan. He said that it was 

 a good bond ; that it would sell for a good premium ; that 

 he would take the whole two and one-half millions author- 

 ized issue and pay a good price for the bonds ; and that he 

 would arrange payment so that the commission could have 

 the money as fast as needed or whenever Avanted. I asked 

 him if he thought the bonds with a rate of less than four 

 per cent. ^Vould go." He said: "Yes." "Three and a 

 half per cent. ?" I asked. "No," he replied. "Well, then, 

 what rate would you suggest as being safe for insuring a 

 sale of the bonds beloAV four per cent.?" He thought a 

 moment, and remarked: "Some people like the idea of a 

 cent a day on a hundred dollars, or a 3.65 interest rate," 

 and intimated he would take the bonds himself at that 

 rate; also that he thought they could be sold at a small 

 premium. I told him that we should be glad to take up the 

 negotiations with him, but the decision had already been 

 made that the only way the bonds could be sold was by com- 

 petitive bids, imder the usual specifications. He replied 

 that he would not go into competition, but would probably 

 pay as good a price for the whole issue as likely to be ob- 

 tained from others. Events soon demonstrated the correct- 

 ness of Mr. Morgan's observation. 



Immediately after leaving his office I conferred with 

 Commissioner Peck, who agreed with me that we should 

 favor the change in interest from four per cent, to 3.65 per 

 cent., notwithstanding that reports like those above quoted 

 had gone out to the effect that the park bonds were to be 

 "four per cents," and the fonn of advertisements and circu- 

 lars inviting proposals at the four per cent, rate were then 

 in proof ready for printing. The same afternoon I wrote 

 Treasurer Murphy and Counsel Munn as follows : 



