Industrial Revenue Bonds: A Source of Long-Term Financing

Seligman Barnard , “The Use of Public Credit for Private Business Through Bond Issues,” Financial Analysts Journal, XXII (March-April 1966), 141.

“Come to My Town,” Forbes, XCIX (April 15, 1967), 57.

Bridges Benjamin Jr. , “State and Local Inducements for Industry—Part I,” National Tax Journal, XVIII (March 1965), 6–7.

“The Battle for New Industry,” Steel, Dec. 4, 1967, pp. 61–64.

“Industrial Revenue Bond Sales Proliferant: 1967 Total is Put at $1 Billion, Double 1966's,” Wall Street Journal, Dec. 4, 1967.

“Lining Up to Do Battle Over Industrial Bonds,” Business Week, March 16, 1968, p. 137.

“New War Between the States,” New England Business Review, Federal Reserve Bank of Boston, July 1964, p. 5.

The following factors and quote are from an interview with James F. Reilly, a partner of Goodbody & Co., a well-known New York investment banking firm, in the article, “A Better Way to Finance a New Plant Site,” Business Management, XXX (July 1966), 41–46.

“Should Tax-Free Industrial Bonds be Eliminated?” Banking Magazine, LIX (Sept. 1966), 62.

“Treasury Clips a Tax-Exempt,” Engineering News Record, CLXXVI (June 23, 1966), 67.

Shaw Robert B. , “Industrial Development Bonds,” Magazine of Wall Street, CXX (May 27, 1967), 18.

“IBA Deplores Use of Tax-Exempt Municipal Bonds for Private Gain,” Credit and Financial Management, LXVIII (June 1966), 11–12.

Seligman , 143.

Two sources have been used extensively for this case study: (1) the “Official Statement of the City of Middletown,” Feb. 21, 1967, pertaining to the $82,500,000 bond issue, and (2) the text of a speech by Rowles C. W. , Vice President–Finance, Armco Steel Corporation, to the American Management Association, April 28, 1967.

Hawkins Edwin P. Walsh Frances J. Jr. , Corporate Debt Management (New York: National Industrial Conference Board, 1968), p. 11.

Rappaport Louis H. , “SEC Highlights,” Financial Executive, XXXVI (April 1968), p. 14.