Eureka Reporter | 1906-05-04 | Page 2 | To Borrow $200,000,000

TO BORROW plan to raise money to rebuild san francisco san francisco A plan Is now un der discus elon here by which it Is hoped to secure briefly the purpose la to secure the guaran tee of the united states upon bonds to that amount which shall form a mortgage on the new construction it was brought forward by former may or james D phelan at a meeting held sunday at which were present con gressman julius kahn of the fourth california district charles S sheelei and banker S G murphy mr phelan later made the following statement the purpose of this meeting was to discuss ways of providing capital tor the rebuilding of the business houses of san francisco it is esti mated by the underwriters that we have suffered a loss of this is for the most part represented lit ln Is bilat without delay flatt new structures should go up on the aulne of the old now with the best will m the world there Is not euf money in san francisco to do this and we must look for it else where if we have to borrow it through the ordinary banking chan nels we will have to pay 4 5 and per haps 6 per cent which added to the increased taxation we will indubitably have to bear will be a burden tot great tor us to carry it Is the idea therefore to frame legislation which congressman kahn will be asked to present to congress recommending that the united states guarantee our bonds with this guarantee we will be able to go into the financial mar bets of the world and borrow at 2 or 2 per cent athe we need these bonds should run for not less than fifty years the proceeds of their sale would be loaned on the security of the realty and the new construction st in other words they would constitute a mortgage on the best por alon of the new city