The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1894-05-03
500. 900 IN 1899.
County and City Railroad Bonds
Fall Due at That Time.

l.
County and City Railroad Bonds
Fall Due at That Time.
On Jan. 1st, 1898, three years and
eight months from the present time,
the county of Redwood will be called
upon to pay over to H. P. Upham, Of
the First National Bank, of st. Paul,
$50, 600, being the amount that will
be due at that time on the bonds CIV
en- to the Minnesota Valley Railway
Company, for extending line from
Sleepy Eye to Redwood Falls,or what
is now known as the stub of the North
western. At the same time the city
of Redwood Falls will be called upon
to pay $4,000 to the same institution
fer bonds given in that sum for the
same purpose. The bonds were issued
to the Railway company, and after
wards sold to the First National Bank,
of St. Paul. They were issued on Jan.
LIST, 1878, by authority of an almost
unanimous vote of the people of this
county and village,at an election held
in June or July of the preceding year.
The bonds were fifty in number for
the county, in denominations of 81, 600
each, and the village bonds were of
the same class. Both classes were is
sued with semi-annual coupons calling
for seven per cent interest, which int
crest has been paid ever since the
bonds were issued, with commendable
regularity. When the bonds shall
have matured the county will have
paid into the hands of the treasurer
of the railroad company, or the bank,
the sum of $4,000 interest, and the
city $4,000 interest, making total
interest of $4,000, on total principal
of $4,000. The item is stupendous
one,when considered from the interest
standpoint.
The question naturally arises how
will the city and county meet the
principal when it falls due. The COM
missioners of the past have failed to
provide any sinking fund for the pur-
pose, and the council has likewise
been negligent in the matter. 1t is
generally conceded that it would be
too much of a burden to infict upon
taxpayers to start sinking fund at
the present time with view to meet
ing the bonds at their maturity.
Two ways have been suggested.
One of them, as discussed by the COM
missioners, is to cause a reissue at a
lower rate of interest, say about five
per cent. AS soon as they are re-is-
sued start a sinking fund, and take
them up one at time as the fund
reaches the $1,000 mark, Or about two
or three every year until they are TAX
en- up. The second. and what seems
to be more feasible plan, WHICH has
also been discussed by the commits
sioners, is to borrow the $4,000 from
the State school fund, at 5 per cent
interest, take up the old bonds in the
hands of the bank, and give new
bonds to the State, having five of
them due every year until the fifty
shall have been taken up, the whole
covering a period Of ten years.
The city has the same right TO bor-
row from the State school fund at the
same rate of interest, and in an inter
view with Mayor Bell last Saturday,
that official stated that some such &C.
ton as proposed above would undoubt-
eddy have to be taken by the city
council. The re-issuing of the bonds,
and taking up $1,000 each year for
ten years would result in the proper
and satisfactory liquidation.