The age-herald., 1901-01-31

Mayor Drennen believes that he has solved the question of issuing public improvement bonds and will present his plan at the next joint meeting of the city council and citi- zens committee. Under the plan the city will have the option of redeeming the bonds at any annual interest period by paying to the bondholder bonus of six months in- terest on the amount.
 To an Age-Herald reporter yesterday the Mayor outlined his plan as follows: The bonds issued by the city are to bear per cent interest and the city to avoid any loss by reason of expense in issuing the bonds, is to charge the property holder against whose property the bonds are issued for improvements at the date of per cent The property holder is to pay bonus of six months interest at per cent. for the privilege of paying the whole amount in cash at any annual interest period instead of paying 1t in annual installments for ten years. The city pays its bonus at per cent In other words the city charges per cent more than it pays to cover all costs, de- lays, expenses and trouble in handling the bonds.
 "The bonds," said the Mayor, "are to be ten year per cent. redemption bonds of denomination of $500 each. interest payable annually, with right of redemption at any annual interest period at the option of the city; the city to pay bonus to the bond holder of six months interest for the op- ton of redemption.
 Parties assessed to have the privilege of electing to pay in ten equal annual install- ments; the first installment to become due nine months after the levy of the assess ment, and all subsequent installments one year thereafter; installments to bear per cent. interest.
 Parties assessed who have elected to pay their assessments in ten annual install- ments to have the privilege of paying up the assessments in full at any installment period together with all interest at z per cent. on the amount of assessments unpaid and together with a bonus of six monhs additional interest charged as penalty. 'Should the party assessed desire to pay his installments in full between mstaliment periods, he shall be required to pay interest until the next future nstallment period to- gether with the penalty above recited q have made a calculation that bonds re- deemed during first year pay per cent to the investor; bonds redeemed during sec- ond year pay 7h per cent to the lh- vestor; bonds redeemed during third year pay per cent to the investor; bonds redeemed during fourth year pay 6A per cent to the investor; bonds redeemed during fifth year pay 66O per cent to the investor; bonds redeemed during sixth year pay 65O per cent to the investor; bonds redeemed during seventh year pay 6.49 per cent to the investor; bonds redeemed during eighth n the investor. bonds redeemed during ninth year pay 6SS per cent to the investor; bonds redeemed during tenth year pay 6 per cent to the in- Vestor.
 A Calculation.
 rha following is a calculation showing that if the property holder pays in ten an- nual installments, with per cent interest," it will just pay the bonds issued py the city at per cent. Bonds issued $5OOO. Assessments levied' S5OOO.
 One-tenth of assessments collected o-oo first year ............ .......... '..''''' %o0V Amount of interest at ' per cent on 5000 .......... ....'.'' .'''''.'' '.''''''''
 $S50 ,, .oaoo,,,ad fret wear ..,,.,... $500 Amount of interest at per cent on $5000 .....,.... ............ .........''''' "oo One-half years interest as penalty at per cent on $500 .................... 10
 SS15 One-tenth of assessments collected second year ............ ........ '.'.'' 9ooo Amount of interest at ' per cent on $i500 .......... ........ .......'' oio
 $S15 Bond redeemed second year .......... $50O Amount of interest at 6 per cent on $4500 .......... .......... ...... .,..''' H'o One-half years interest as penalty on $500 .......... ......'.. .....'''.' ID
 $7s5 One-tenth of assessments collected third year ........ ....''.' Sooo Amount of interest at ' per cent on $4000. ....... ........ ..........'.... <oV
 s7so | Bond redeemed third year ............. $500 l Amount of interest at per cent on $40OO .......... ................... 24O | One-half years interest as penalty at per cent on $500 ...................... 15 |
 $755 | One-tenth of assessments collected fourth year .......... ............ $5O0 | Amount of interest at per cent on If | $35O0 ............ ............. ............ 245
 $745 | Bond redeemed fourth year ........... $500 | Amount of interest at per cent on $35OO ............... ............. 2l0 | One-half years interest penalty at per cent on $35O0 ..................... 15
 SIPS One-tenth of assessments collected fifth year .......... ....... ............ $500 Amount of interest at per cent on $5UUU ............ 2l0
 -
 $710 Bond redeemed fifth year ........... $5O0 Amount of interest at per cent on $sOoo ............ ............ ........... 1so One-half years interest penalty at per cent on $50O ...................... 15
 $695