The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-01-14
A NOVEL OFFER IS MADE 1
The Aetna Company Wants the
Sinking Fund.
WILL PAY TWO PER CENT.
1t Asserts That the County Would Make
$4,000 if 1t Accepts the Offer
Made by the Trust
Company.

An unusual and somewhat remarka-
commissioners yesterday by the Aetna
Savings & Trust company of Butte to
make use of the county sinking fund
which is being accumulated for the
payment of $125,000 in county bonds and
interest thereon. Senator Lee Mantle
is president of the Aetna, but the prop
osition was presented to the commits
sioners by A. B. Clements, secretary
and manager of the company; Fayette
Harrington, the treasurer; Charles
Schatzlen and several other officers of
the company, who called on the board
in body. There is at present in the
sinking fund about $4,000 and the fund
increases about $4,000 year after the
interest is paid. According to the
terms of the bonds, they were redeem
able on the first of July, 1902, by which
time there will be over $62. 900 in the
SINKING fund, with which the principal
and interest could be reduced one-half.
The proposition made by the Aetna
Is that the county pay to the COM
pany 1888, ZOO in "a installments of 1850
''SAi' 'SSiiiillilso Will Tie present
Tor the payment of the $125,000 bonds
and to further pay to the Aetna COM
pany $S4,315 In Sd quarterly INSTALL
ments of 81, $3.50 for the interest On
the bonds at five per cent during the
remaining 131a years in which the
bonds have to run if not paid until ma
turity in 1912. The Aetna agrees upon
the payment of the above amounts to
pay the interest on the bonds as it be-
1I1n md 70 H.
selves in full when they mature, and
hold the county free and harmless from
any claim or demand arising out of the
bondS other than for the payments
mentioned to be paid to the Aetna. The
latter further agrees to deposit in Some
bank or with some trust company, to
be named by the county commissioners
at the time of the payment of the sums
named for the eXtinguishment of the
principal sum of bonded Indebtedness,
hrst mortgages equal to twice the
amount of the sum paid by the compa-
ny to be held by bank or trust com
pany as security for the fulfillment CT
the agreement by the Aetna company,
the latter reserving the right to with
draw the mortgages as they become
due and replacing them with Others
The representatives of the Aetna COM
pany made strong representations to
the commissioners as to the benefit the
county would derive from the PROPOSE
tlon. The figures presented showed
that the county would make $50, 900, the
substance of the Aetna proposition be-
ing that the company would pay the
county 212 per cent. interest for the
use of the sinking fund and interest
The proposition, however, is based on
the idea that none of the bonds should
be paid before maturity in 1912 1t was
figured out, however afterwards, by
the commissioners that if in 1902 half
the bonds were taken up the county
would come out only a few thousand
dollars behind the Aetna proposition,
The commissioners decided to refer the
matter to the county attorney for his
opinion, as there is grave doubt that
the money in the sinking fund can be
touched at all, except for the purpose
for which the law created it.