The Saint Paul globe., 1897-08-19
BOND PURCHASE O. KID.
state Investment Commission Is
Satisfied With It.

stare Investm Commission Ia
Satisfied With 1t.
The state investment commission met
yesterday and indorSed the action of
State Treasurer Koerner and Auditor
Dunn in investing $500, 900 in Massachu
setts and Virginia bonds
Chief Justice Start, Gov. Clough and
President Pillsbury, of the board of
regents, who compose a majority of
the commission, regarded the invest
ment as very good one
The commission also indorsed the ac-
ton of the state auditor in issuing
a circular announcing that the loans
to school districts and townships would
be graded in amount, according to the
valuation Of the town or school dis
trict.
The legislature has raised the amount
which may be loaned to these organiz-
at1onS from 3 to Z per cent of their as
sessed valuation, but the board having
in charge these loans and the respon-
S1b1l1ty for the money decided that
- many cases per cent was too much.
1t was finally decided to make the
following limitation: Three per cent
on a real property valuation of $780,
900 or less; 4 per cent on a real property
valuation between $4,000 and S100 900;
8 per cent on a real property valuation
between $4,000 and 5000, 600; per cent
on a real property valuation between
5000, 900 and $500, 600; per cent on a real
property valuation exceeding $3oO,OOO.
The circular says: 1.-The state
will not make a loan to refund
bonds issued in aid of any railroad
company. All bonds issued under this
act must be directly authorized by
vote of the people in the district af-
fected, at a regular or special election
The loan may run twenty years and
not less than five years. Part of the
loan may, however, be paid before five
years if desired. Partial payments of
principal will be accepted by the state
at any time The rate of interest is
four a. per cent. The tax levy for the
payment of both principal and inter
est will be made at the proper time
direct from this Office, and collections
made through your county treasurer.
Do not make the entire loan mature
in one year, nor any part of said loan
to mature before sufficient time shall
have elapsed for a tax to be levied
and collected therefor. The state pre-
fers distributing the payments over a
series of years. Make bonds in even
amounts as near as practicable
There has been some kicking on the
rule limiting the amount of loans, and
in many instances the complaints came
from the new townships and school
and 1t was up there that the board
especially desired to avoid making the
loans too heavy. In many of the very
sparsely settled portions of the state
the valuation is placed high, while a
school district at present will perhaps
comprise whole township. Later this
district will be fdivided up. Then the
new settlers will have to pay their
share of the debt incurred by the pres
ent organizations and at the same time
erect new schooEhouses for themselves
Naturally, therec would eventually be
trouble when the newcomers find them
selves taxed for1 building two or three
school houses whentthey can use but
one.
Some of the districts in the southern
part of the state have made applica-
ton to borrow the limit, and have reg
istered a vigorous complaint when re-
fused.