Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1883-04-13
oouNTY's RAILROAD
BONDS.

On the 25th day of the present month
the voters of Ysnkton county Will be
called upon to cast their ballots on the
ratification Of the law passed by the last
legislature, and signed BY the governor
|ssthorixng tnb county to issue new four
per cent bonds with which to take up
the outstanding eight per cent railroad
bonds. By the provisions OF this act and
an agreement with the bondholders, the
outstanding 100000 of railroad bonds
are to be surrendered to the county and
new bonds are to be given by the county
in exchange therefor. The accrued in.
terest on the old bonds, amounting to
about $4,000, is also to belprovidsd for
BY the issue of bonds bearing the same
rate of interest as the bonds issued in ex-
change for the old ones. The county of
Yankton is now becoming liable for in
terest on the old bonds at the rate Of
eight per cent per annum and for inter-
est on the unpaid interest at the rate Of
seven per cent per annum. Its indebt-
ednees is piling up at the rate
of nearly 5000 per month. The pro.
posed new bonds are to draw interest at
the rate of four per cent per annum for
the first ten years. and four and one.half
per cent per annum after the first ten
years, and are to run thirty years if the
county 90 desires. But at any time after
ten years they can be taken up and re-
tired.
There is in the Yankton county treas
ury money enough lying idle to pay off
$4,000 of the existing railroad indebted
ness. This money has accumu.
lated under. an act
providing sinking fund for the pay
ment of other obliga tions, amounting to
$4,000. This fund was annually so
much larger than was needed that about
$4,000 has accumulated. By a legislative
act this amount has been diverted to the
payment of portion of the railroad
bond debt. The face of the proposed
new four per cent bonds will therefore
be reduced to about 100000. The annu-
al interest on this sum will be $4,000,
which will require only six mill per
dollar levy upon the property owners
of 7'ifnktnn county each ynar :, '-,,,'ff- -
During the past six or eight years
levy of four mills on the
dollar has been made and
collected to meet the $4,000 liability
above referred to. By provision of the
law this four mill levy has been stopped,
which will reduce the actual increase in
taxation through the adoption of the
proposed 100000 four per cent bonds to
two mills On the dollar.
Yankton county's proportion OF the
railroad tax drawn from the territorial
treasury now amounts to one mill for
every dollar of taxable property within
the county and this sum will of course
reduce the actual taxation to that
extent. In the course of two
or three years the receipts
from railroad taxation will have doub
led.
We have endeavored to show by actu
al figures that the adoption of the propo
sition to issue new railroad bonds at tn
proposed low rate of interest will no
cause any material increase in taxation
under the provisions which accompan,
the bonding act. With an economical ad
ministration of county affairs this vii
be the fact. On the other hand, if til
new bonds are not ratified by vote of th
people, the bondholders have the author
Iity to at once compel levy for the pay
msnt Of the $150,00O interest due, whic
would require every property owner i
Yankton county to pay eight cents O.
every dollars worth of property owne
by him. This would amount to eight
dollars on every thousand dollars wort
! Of property, which must be paid imm.
diately, if majority Of the voters {
d Yankton county fail to vote for the ne,
bonds. If the bonds are carried, the il
creased taxation will amount to but tw
dollars ion every thousand dollar
Furthermore, If the new bonds are nc
adopted the old bonds will remain
force and they are DRAWN
eight per cent interes
The old bonds will mature inside Of th
next eight or nine years and must the
be paid in full. The new bonds hav
thirty years to run before payment ca,
be demanded.
The adoption Of the new bonds wil
place Yankton county upon an excellen
Financial footing. The aggregate Of it
taxation outside the city will not be owe
! sixteen mills ON the dollar and with til
city tax added not over twenty
eight mills On tile dolla
figuring irom the basis Of the present a.
. sessed valuation. The settlement Of th
Indebtedness will induce capital to X
cate in our county and will largely il
crease the money value Of every man
possessions. The taxes Of the count,
after this bugbear Of national repute
disposed Of, will be much less than Il
taxes OF many other counties in Dakot
We know Of one prosperous count
which is paying ffty mills tax each ye
on its assessed valuation. Another
paying forty mills and many othe
from twenty-five to thirty. So
A will at oncc appear that the settleme