Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1881-05-03
BERKELEY COUNTY FINANCES,

The following article from the Martins
burg Statesman, showing how the authori.
ties of Berkeley county are conducting their
financial operations in regard to their bonded
Indebtedness, we append as worthy of peru.
sal and consideration ::
The special term of the County Court on
Saturday last was chiefly occupied in exams
ing reports and making settlements with A.
j.. Thomas. as sinking fund commissions and
agent of Berkeley county. This involved
all matters connected with our bonded in
debtedncss and tile disposition of the bonds
which had been paid eff and taken up. The
who'c subject is Of such general interest and
the reop!e of the county are SO directly COM
cerned, that from the olenr and satisfactory
statement made by Hon. E. Boyd Faulkner.
who has been the attorney Of Mr.. Thomas.
and who is familiar with everything tina. has
bean done, both in the Court and the Leg.
%lsiature, and from the reports and orders
entered by the Court, We will endeayor to
give an accurate account Of every step taken
looking to a reduction Of eur debt.
On the End OF January, 1871. the county
of Berkeley, issued S12e, 600 eight per cent.
non>taxab!e bonds in aid Of the construction
OF the martinsburg & Potomac Railroad.
These were twenty year bonds, but fortu,
nately the right was expressly reserved by
the Court to pay them off in ten years from
their issue. The interest for the ten years
part has been promptly paid semi>annually.
In 1877 the question was consid srably
agitated and discussed as to what courss L
would be best to pursue to keep our credit
hrst>class, and at the same time relieve us
OF the heavy interest we were paying. The
conclusion arrived at was that We would at
once apply to tho Legislature for authority
to create a sinking fund. into which the
taxes received from the Baltimore & Ohio
Eniirosd Company should be paid and bonds
bought up and paid off with this as rapidly
as possible; and secondly, that we should
also obtain at the proper time authority to
fund at a lower rate Of ~interes. S1O5. 600 of
the old bonds by issuing that number of new
bonds and exchanging them for the I'D: or
to sell the new bonds aud apply the proceeds
to pay off the old ones. These new bonds
wero to bear 6 per centum interest and were
taxable.
The plan then proposed has been carried
out, and as vas anticipated, had it not been
for the action OF the County Court in divert,
ing a portion of the railroad taxes from tho
sinking fund, there would have been sniff
Gent in money with the new bonds to have
taken up every old eight per centum bond
Or the 2nd of January, 1881.
The new bonds were issued in December
last and with them sos. 900 of old bond.
have been taken up This was done either
by exchange or selling the new and paying
off the old ones. The sinking fund has paid
off $1,000, leaving s. 1000 ye. outstanding,
with balance in. sinking fund of s41O.4O},
aud about $1,000 last years taxes from
Railroad to be applied for this purpose.
The principal of our debt has been re.
dueed to 500. 900, and in our interest ac-
count hereafter we will save annually about
$1,000.
The SIG, 600 of bonds turned over to the
Court, on last Saturday, were each with