, 1877-08-26
FINANCES OF THE TOWN or LAKE.
$b< Fd}tnr M TFhr T-ih,,ne

LAKE, Aug. 23.-As 4 report Of a so-cal1e6
committee Of taxpayers Of the Town OF Lake &C.
Gently appeared in your columns in reference tc
an alleged deficiency in the sinking funds for
payment of principal and interest on the bonds
of the Town Of Lake, and coudcmning the action
Of the Board Of Trustees because of alleged di,
version of said funds, I trust You will accord
me space for the following:
There are outstanding $40 I per cent bonds OF
the Town Of Lake for 81 900 each. OF these
lS0 were issued under ordinance of March 30,
1874. and 1G0 under ordinance Of Aug. 20, 1874.
These ordinances provide for the levy of an an
nual tax of s4o,3i6.H for The payment Of the
interest on said bonds, and for a sinking fund
to meet the principal Is 1t may mature.
In tho appropriation OF 1874 only about
s12,o00 was levied for this purpose, but the
proper amount was included in the approprta-
tton ordinances OF 1875, 1876, and 1877. # is
collected until the year after the levy is made,
and the appropriation of 1874 was not received
unit! the summer an3 fall OF 1875 and that OF
1875 not until the summer and fall Of 1876,
while the taxes of 1873 are now In process OF
the tax lery is not collected because OF forfeit
urcs and appeals, and therefore it is that there
has been received for the credit of this sinking
fund only the amount OF s52,S4G.0i, while over
Sl3son 7a has been Levied, including the levy Of
should properly he pai0e These bonds, howcv-
er, draw interest from ttetr date, payable Jan.
! aud july OF each year, and the coupons due
January and July, 1875, and January, 1876, all
matured before any considerable amount
payment, and the Board Of Trust
ces had the alternative presented
to them: Of borrowing the money for tho pay
'ment m OF the coupons as thcy n1atured, or Of
allowing the interest to BIG in dcfsult until
taxes should DC collected. In order to protect
tue e1edit. of the Town, they chose the former
course, although it involved the payment of
interest for the time which should elapsc until
the ta1ea should be paid, and all interest on
these bonds, including that due July !. 1877,
books of tho Town show paid MS Interest On
these bonds is, as stated in the report OF the
so-called committee, SCI, go, leaving the sink
ing fund In arrears something less than $4,000
report, for other purposes than that for
which 1t was 1eyieil, but all that was COL
lectcd was faithfully applied to the specific
objects for. which: the appropriations were
ma so aa eons1iconsE IN tie
meetings would pay up their own taxes, some
OF them three and tour years in arrears, the
sinking fund would not be IN debt, but would
have money to its credit, which would be ap-
piled towards reducing the principal Of the
bonds. ~.
Now, as to the charge that $4,000 bonds
hare mattsred and have not been paid. but the.
money collected for. that purpose divcrted,''
ETC., | wish to state that in addition to the Der
ecnt & bonds referred to aaboys there, are out
der ordinance Of Dec. s, 1874 due in December, |
ls76 drawing 10 per cent interest. The :ordi-
nance under which these bonds were issued r.
quires M annual levy of s25,0 to be made
for two years for the payment Of the principal
md interest thereon. This levy. was made ii
both 1875 ind 1916 The levy of 1876 is now ia
process Of collection; Of the levy OF 1875 some
s17,0tO Was collected. the rest was forfeited or
appealed -. -, ..,u~
Now, although the $4,000 was Ill due in De-
:ember, 1876, it will be seen that after deducing
from the amount collected the 5000 for the
two years. interest there was only $4,000 left in
he hands OF the Treasurer to npply toward the |
,aynaent OF principal, and the Board of Trustees
'btafred; from the holder ct these bonds an e1-
ensfon of one year Of the principal, and bor-
owed from tnis fund the $4,000 for the pay
nent Of the deficiency in the ;'other interest |
undS as above stated, aud this Will bo renaid |
mt, OF the taxes noW In process OF collee- !