Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1898-11-12

land said all he wanted was permit
from Council.
Thomas Hill requested permission
to speak, which, being allowed, he said
he might be able to help Council to
arrive at solution of the question.
He offered the suggestion that if Coun-
Gil granted the permit it would make
the town liable to damages.
Mr.. Wittig repudiated the idea of
damages and said that he would be re-
sponslble for any damage, even if
there was splinter knocked off.
The motion was then submitted and
carried.
R. Amman, cashier of the First
| National Bank, said he was prepared
to furnish the town with $4,000 to re-
| fund their bonds and reissue them at
/ per cent. He read the following
paper:
Memorandum Of dgreement, Made this
seventh day of November. eighteen hundred
and ninety eight by and between the Mayor
and Councilman of Frostburg, party of the
first part, and the First National Bank of
Frostburg, Md, party Of the second part,
both said parties being corporations duly in
| corporated-
WHEREAS, There are now outstanding
bonds of said party of the first part issued by
it under and by virtue of the authority con-
ferred upon it by Acts of the General As
sembly of Maryland, as follows: Chapter
100 of the Acts of 1890 and Chapter 124 of the
Acts of 1892. said bonds aggregating the sum
of tiftytive thousand dollars and bearing in
terest, some at six per cent. some at five per
cent and some at four and one half per cent,
and
WHEREAS, Said bonds are by their terms
redeemable at any time after five years from
their date at the pleasure of the party of the
first part and are all now more than five
years old and
WHEREAS, By Chapter SO ofthe Acts of the
General Assembly of Maryland of 1898 said
party of the first part is authorized to issue
new bonds to the amount of fifty-ive thous-
and dollars bearing interest at not exceeding
four per cent and to sell the same at not less
than par for the purpose of providing funds
to pay off and retire said first mentioned
bonds, and
WHEREAS, Acting under the provisions Of
SAID last mentioned Act said party of the first
part did advertise said bonds for sale invit-
Ing bids for the same on or about April /,
1898, but received no bids for the same and
WHEREAS, The said party of the second
part is now willing to subscribe for the whole
issue of said bonds at par and to pay all ex-
penses connected with the issuing of said
bonds and the redemption of said old bonds,
including printing engraving advertising,
expressage, legal expenses and all other
proper expenses connected Herewith, in con-
sideraton of the sum of eighteen hundred
and fifty dollars, to be paid to it, receiving
therefor the notes of the party of the first
part, bearing interest and payable as follows:
Sooo Ill.,. .................. -. months
$500 in ........... go. .....18 months
$500 in...... ..............24 months
$500 in. ............ ......3O months
$500 ln........ .......... ........6 months
WHEREAS, The said party Of the first part
has been authorized by a resolution of the
City Council, duly approved by the Mayor,
to make this contract
Now therefore, in consideration of the
premises and of the sum of one thousand
dollars, in hand paid by the party of the
second part, the receipt whereof is hereby
acknowledged, said party of the first part
does hereby agree to sell and deliver to said
party of the second part on or before the 3lst
NaV nf l)prpn her 1903 tiff nd
dollars of its four per cent, bonds to be known
as 'Frostburg Water Bonds of 1898 running
for thirty years from their dare and payable at
any time after five years from their date at
the pleasure of said party of the first part,
bearing interest at the rate of four per centuni
per dnnana, payable semi-annually, for which
coupons shall be attached to said bonds, and
said bonds being of the denomination of five
hundred dollars each, payment therefor to
be made i'll cash OH the delivery of said
bonds, the one thousand dollars hereinbe-
fore acknowledged to have been received be-
ing part of said purchase money, and said
party OF the first part does agree to deliver
upon receipt Of the money for said bonds and
promise TO pay in accordance with their
terms the notes herelnbefore set forth
And said party of the second part on its
| part does agree to pay for said bonds at par
| In cash upon delivery OIL or before the 3lst
day OF December, 1888, and to pay all the ex-
penses of printing and lithographing said
bonds and coupons, of drawing the same and
of the redemption of said old bonds and all
legal expenses connected with said issue of
bonds.
Witness the corporate seals of said parties
| and the signature of the Mayor of said party
of the first part and of the cashier of said
party of the second part duly attested.
Mr.. Annan's statement, condensed,
is about as follows:
-Four per cent. interest on S55, 900 is 81, 300,
or S6O5 less per ann"m than is now paid.
This would amount to S!3,9l5 for the %
years the current bonds are to run.
Town would lose interest on that sum for
half the time, which would amount to
IS. COL So
Add that sum to Sl3,9l5 and find direct
saving of S23, 576.35 by refunding at per
cent.
Take Off expense and find a net saving
of over s2l, 600, or considerably more than
one-third of the entire issue.
The sum of S605 saved annually will take
up bond of $500 each year, and in % years
| pay off Sll 500 including attached coupons.
ID. d. Price thought it would be a
good thing, and Mr.. Crump moved
that the proposition of the First
National Bank be accepted.
Mr.. Crosse asked whether any other
bank had been given a chance to bid.
The Mayor replied affirmatively ;