The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1898-03-30
THE BOND ISSUE.
The Following Interesting Com
municatiOn Explains Itself.

lnunicatiOn Explains Itself.
ELY, MINI, March 20, 1898.
EDITOR OF The ELY MINER:
As L have been requested by several
voters to explain the purpose for
bonding and the reason for the pro-
posed bond issue to be voted for at
the next annual city election for the
city Of Ely, | take this method of
placing the matter before the citizens
and request that you publish the
same.
The purpose for which the money
is to be used is best explained in the
resolution to be voted for. the money
that may be raised by issue of bonds
cannot be used for any purpose other
than for which it is raised. In the
first place there is outstanding, Five
Thousand dollars bonded Indebtedness
with interest on the same for six
months which will mature April 1st,
1898. The rate Of interest on these
bonds outstanding is per cent and
there Is not sufficient, and will not be
on that date, in che treasury credited
to the bond and bond interest fund,
to pay the whole amount. This fact
was ascertained when the tax levy
was made in September 1897, when
taxes were levied for the year 1898,
and it will require about $4,000. to
make up the deficiency. 1t was con-
sidered by the council and decided
that it would be to much of a burden
on the tax payers to raise this amount
in one year by tax levy, and further
than this, it should have been raised
the year previous to be available for
use this spring if raised by taxation.
The provisions Of the laws of the
state Of Minnesota allow the state
officers to loan the state school funds
at four per cent per annum in bonds
payable in not less than five years.
and while the bonds proposed to be
voted for, none of them are payable
for five years yet by the regulations
allowed to be established by the loan
ing board payments may be made and
wilt be received at any time previous
to their maturity. Acting on the
idea that a tax levy would be a
burden, that the improvements de-
termined upon are necessary for the
best interests of the citizens, and
that by proper economy there could
be enough spared from the general
fund to make payment Of at least
one thousand dollars each year begin
ming July 1st. 1899. on the debts to be
incurred, the council decided to call
for a vote on the proposed issue, by
the proposed mode of payment at the
end of five wears the whole amount
borrowed to pay the present outstand-
ing Indebtedness including the sum
Of two Thousand dollars of the pro-
proposed new Indebtedness to be
raised for the new city building could
be paid that if any part of the five
thousand dollars to be raised for this
purpose is not paid at that time it
may be refunded and be paid one bond
each year, following after the year
1906, after the proposed bonds Of three
Thousand dollars are payable, all of
which Indebtedness in all probability
can be paid without increasing the
tax levy. and being at a low rate of
interest, not be burden to the tax
payers.
As most citizens understand, there
has been voted and issued twenty-five
thousand dollars in bonds of the city
of Ely, bearing 8 per cent interest,
payable semi-annually, with coupons
attached of which five Thousand dol
lars of the bond mentioned are the
outstanding bonds Of the city and all
Of that issue that were negotiated.
The balance Of twenty thousand dol
lars can be negotiated by the city
council without any further action OF
the voters, and it was the expressed
purpose of the present council in the
event of the favorable vote to issue
the bonds contemplated, to repeal the
ordinances authorizing this twenty
thousand dollars Of bonds, cancel the
bonds and pay off the five Thousand
dollars with interest outstanding,
which is payable April 1st, 1898.
Answering the question why seven
of the proposed bonds are payable
july l, 1903. while the others are pay
able one each year beginning 1904.
1t is because the three Thousand
dollar bonds are to refund debt al.
ready esistiup and could run fifteen