The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1895-11-28
SETTLEMENT OF THE COUN
TY BOND QUESTION.

1t is such a settlement as does the Board
credit as the members showed regard fol-
the individuals who were bound as well
as for the rights of the people interested
The settlement Is practically on the same
basis as that made by the city council
with the bondsmen of the city treasurer
when the funds Of the city were lost IN
the same financial crash. The bondsmen
pay $4,000 and take an assignment of
the mortgage. The vote was practically
unanimous, only two voting no
4 resume of the affair may not be amIss
at this time: 10 the fall OF 1890 the Coun
ty Board by resolution decided that the
| county funds should be deposited in some
bank which would agree to pay interest
on monthly balances, this interest to be-
come q part OF the funds. It was taking
the county moneys out of the hands of
the treasurer and investing them for the
county'si benefit. The interest on the
funds amounted the first year to about
$500. The people who went upon the
money " ere VIM. Rahr, Max Rahr, Rein
hardt Rahr, II. Truman, George Cooper,
George Pankratz and Chris Gielow.
Everything was done in proper order and
| the bond was IL undeniably legal shape.
In 1891 a second contract was entered
| into with the same bank for the deposit
ofthe funds on similar terms, but no new
bond was required by the committee rep
resenting the Board. In about months
| after, the bank failed. A special meeting
of the Board Was called Legal advice
was sought as to the liability of the
| bOndsmen and the lawyers employed by
the county rendered an opinion that the
| bondsmen could be held on the bond of
the year preceding. Then the legal con-
| General Winkler appearing for the c0un-
! ty and Nash L Nash and Gabe Bouck for
! the bondsmen, The latter secured oDIn-
/ ions from other celebrated lawyers, and
| be held The county won IN the circuit
| court. An appeal was taken and the
| county Won in the supreme court, This
was apparently the end, but the bonds
| men we're determined TO resist execution.
! From number il was evident nothing
! could be collected and the burden would
! all fall on the others. 4 continuance Of
| litigation seemed inevitable. Tie bonds.
| men who were left in the Iurch could not
! without endangerlng the continuance of
their business, pay the full amount OF the
| judgment and they decided to contest to
the bitter end unless some amicable
settlement could be made. VIM. Rahr
on behalf of the bondsmen, appeared be-
! fore the Board and asked for conference
with view to settlement. This was
quickly effected and thus a source of sore
contention is happily removed
| The amount the county had in the
| bank at the time of the failure SOL ,28I.S5.
1t received a % per cent. dividend which
amounted to S12,S387S, and which re-
duced the loss to $38, 44307. 1t is ex
pected the assignee will be able to pay an
additional dividend Of , per cent. which
will amount to $2,567.70, leaving the net
loss of the county, without figuring in-
terest, at S35,87532. Deducting from
THIS the $4,000 paid by the bondsmen
and the loss of the county without con-
slderlng interest or costs is S23 1882.
Assuming that dividend of 5 per cent
Will be paid, The county will receive about
81 = per cent. Of It's claim, while indlvId-
ua.s must be satisfied with 30 per cent.
Thus the County Board has secured for
the county 22l per cent. more of It's
I claim than individuals have been able to
do for themselves. The costs are $3.50
The County Board since the failure Of
the bank has acted with such consum-
mate tact IL The management of the
county's affairs and finances that the
county has more than made good its loss,
has reduced the bonded indebtedness of
| the county and tax payers have not felt
| lhe pressure OF heavy taxes.
The original railway Indebtedness Of
the county was S2l6,O00. OF this $685.
600 mas been paid up and the balance is
| drawing only per cent. interest. Since
| the loss of its funds, the county has built
! a jail and sheriff's residence at cost Of
| So, GOO; has Temodeled the court house
! at Il cost OF $4,000. and it has as fine
| county offices gov as there are In the
| state, and has paid $4,000 of its bonded
| Indebtedness, that is a total OF $70000 Of
| what may be called extraordinary ex.
| penses, has been incurred and paid be-
| sides The ordinary expenses of the county
since 1892. The sum of $1,000 was Dor
rowed during that time and is still IN
| paid making the total indebtedness of the
county $4,000 as against S171 900 in
1892. The situation at present Is: The
! county has reduced It's bonded indebted
ness S3S, 600 and has made permanent
| improvements to the amount OF $4,000,
a total of $4,000, less $4,000, in certifi-
cate of Indebtedness, leaving a gain IN the
/ financial condition OF the county of $780,
600. Add to this the Sl2,060 received
from the bondsmen and the county is
! $4,000 in better condition than at the
! time Of the bank failure, It has on hand
| S. oUt, which increases the sum to ST, COO.
| From this deduct the entire loss of SOL
| PSI. and it will be found that the county
| by good management has made good its
| loss and Is S31 10 ahaa1
The tax payers have not felt this.
This fall the state tax is anusually nigh,
| but tie county tax will be correspond
ln2ly less, SO that taxes will not be higher
than usual. There is 20 county in the
! state which can show a better record than
! this. rnl IL ihera anN OF her county In the