The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1899-10-06
No Sinking Fund.

The report of the finance committee
was then taken up, and Mr.. Fletcher
moved to amend the report so as to
strike out the $4,000 provided for a
sinking fund to meet the $4,000 of
bonds that fall due Sept. 3rd, 1905. Mrs.
Smith seconded this motion.
Mr.. Fletcher took the floor and said
that the financial condition of the city
is such that not dollar ought to be
added to the burdens of the taxpayers.
He was willing to give the right of way
to the council if it will get out of its
tangle in the next three years. After
that, the school district could pay it's
debts. 1t is not good policy to have
sinking fund lying in the banks. He
would prefer to levy mill tax during
the two years just before the bonds fall
due and thus raise $4,000. He would
refund the balance of the bonds with
short time bonds payable from year to
year. The board has no authority to
loan sinking fund, and it would lie in
the banks without interest.
President Davis did not favor provid-
ing sinking fund.
Mr.. Parry asked what was to be
gained by not having sinking fund.
1t would be easier to pay little each
year than to make large payments in
one or two years. "a ..--... -
Mr.. Wilson said that. no taxpayer
would feel the $4,000 and by keeping
this up, one-half of the debt could be
paid when it became due.
Mr.. Parry remarked that as far as
good fnanciering is concerned, large
financial concerns all over the country
are providing sinking funds.
Mr.. Fletcher said that sinking funds
disappear sometimes. ....
Mr.. Wilson said that the absence of
interest on the sinking fund would be
offset by the interest to be paid on the
unredeemed bonds after 1905. We do
not know what rate of interest will be
demanded then. "When do you people
expect this board to get out of debt if
no sinking fund is provided7" asked Mr..
Wilson. "You would string the bonds
out for thirty or forty years and keep
the board in debit ssn-v5T
Rev. Davis said that it would not
hurt the district to be in debt, consider
ing the condition in which it is. 49,,
Mr.. Wilson replied that after awhile
new building would be needed and
new bonds would be issued and the peo-
pie would kick and depress education
on account of taxation. The board
ought to get out of debt now instead of
doubling it later on 1T]@@ - s.-I=4.
Mr. Fletcher said that the popula-
to make new building, necessary if
things keep on as they have been going.
Mr.. Wilson retorted that the popula-
tion of the city is increasing right
along. nz-.r-
Mr., Fletchers amendment was car.
ried by vote of four to two, Messrs.
Wilson and Parry standing Loyalty by
the sinking fund proposition.
Mr.. Fletcher then moved to strike
out the $500 for heating plant in the
Franklin building. He said that an
addition to the building would be need
ed after awhile. and if heating plant
is put in now it would be put in the
wrong place. The $500, with the 81, 900
raised last year, would not pay for a
plant.
Mr.. Wilson said that the special fund
now amounts to $4,000. 1--WE can pay
SO, 500 for heating plant if you want
that kind down at your building" said
he,
This amendment did not meet with
favor, and the tax levy was adopted.
The matter of more room was taken
up. and Mr.. Fletcher said that there is
no more need of new building this
year than three years ago. There is a
falling off in the enrolment, and no
crowded condition except in one room
in the Pleasant Grove building. Some
of the scholars in that room should be
in the East Mankato school.
| Mr.. SCHNEIDER, representing the Stand
ard dictionary, and Mr.. Ellis, the in
ventor of an air pump, were present,
but the board concluded to let them tell
their stories to the superintendent and
hear from him later. The board ad'
journed.
d The attention of our readers is called
to the ad. of the New Star clothine
house which appears on first page this
, week. Look it over and note what