La Junta tribune., 1899-08-26
rive soso ovssr,on.


cussion pro and con on the subject
OF refunding the water works bonds
during the past week. A very Sc
lect few, which includes the editor
OF the Democrat, are in favor OF
paying OFF the present bonds when
they become due, and are opposed
to refunding under any circum-
stances. There are others, who
appreciate the gravity OF the sitna-
ton, who are in favor OF refunding.
but think that better terms should
be secured than those offered by
the Denver investment company.
They cannot understand why the
town OF La unta should refund
S3S, 900 worth of water works
bonds on the fifteen-th thirty year
plan at 6 per cent, when the towns
OF Lamar and Rocky Ford are able
to dispose Of S per cent bonds at .
premium.
The principle reason why the
town Of La Junta is not able to re-
fund on equally good terms is that
the conditions are different. The
Lamar and Rocky Ford bonds
were due and had TO be refunded.
The La Junta bonds are not due
until 1907. and the present holders
have got cinch on collecting six
per cent interest for eight years
unless they are offered bonus to
surrender them. They can also
mandamus the council and compel
them to make an annual tax levy
sufficient to pay the interest on the
bonds and one-eighth OF the prin-
c,pal each year until the time Of
maturity.
The investment company. in
reply to letter which the town
clerk was instructed TO write, has
renewed the offer to refund the
present bonds on a fifteen-thirty
year plan at 6 per cent, and has
offered to take an additional issue
OF IS, 600 at the same rate Of inter
est, the money to be used in build
ing a new reservoir. They have
given the city council until Mon
day night to render their final de-
cision in the matter. Unless it is
accepted the investment company
will dispose Of the bonds in east
ern communities and the matter OF
refunding will be at An end. The
only alternative left will be to
create the sinking fund and be
ready to pay the bonds when they
become due.
One objection made to the re-
funding proposition is that the law
under which the new bonds would
be issued, and which we publish in
another column Of this paper, con-
tains the same Objectionable fea-
lures incorporated in the present
bonds, in as much that they
require the creation of a sink
ing fund beginning not later than
six years from the tiDe Of the issue
of the bonds. Considering the f.
nancial condition Of the town and
the present high rate of taxation,
an extension Of the time for Great
ing sinking fund even for a period
OF six years would be an advantage.
The present assessed valuation of
the town is s,+4, 56l. and IN six
years il may be double that amount
and the population greatly in
creasd.
In six years the revenues Of the
water plant will also re greatly in
creased, and it may be possible
that BY that time the earnings Of
the plant will be great enough 20
that IN amount sufficient 70 create
q sinking fund could be set aside
each year without making . levy
for that purpose II all. Il would
simply result in the bonds being
paid off eventually from the reve-
nues Of the wstef plant alone.
Last year the revenuss of The water
plaat wsre Sz.soos IS. Ont ot this :