Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-06-05
BONDS PREFERRED
e. L. Eastman Discusses This
Method of Paying Off
County Debt.
INSTEAD OF a 5-MILL TAX
Ormer Would Involve Tax of One
Mill and Would Give No Chance
to Misapply Funds.

Moline, H., June s. Editor Argus
If the five mill tax proposition is de- |
feated next Monday it can not be again
submitted to the people for two years.
But there is yet another way for pay
ing off this old indebtedness of the
county-the issue of bonds. Such a
proposition could be submitted at the
next general election and there is a
possibility that it could come up at the
special election called to choose Judge
Scott's successor Some of the bankers
in the city who have been seen, and
also others well informed on financial
questions. seem to think bond issue
the very best solution of the whole
matter ~
If the five mill tax goes down to de-
feat for third time it will be be-
cause the people are opposed to voting
this $4,000 additional for county ex-
penses, and not because they oppose
paying the old debt against the county
which amounts to $135,000 The first
item for expense money is far greater
than the amount required TO pay the
old debt, and there is a quite general
belief that if the county board will use
due diligence-watch every expendi-
ture carefully, this sum for expenses
will not be required.
Bond Issue Preferred.
There are reasons why a bond issue
is preferable to this five mill tax.
which | wish briefly to enumerate. It
is suggested that SIPS, 900 of per cent
serial bonds be issued and that it carry
with it a one mill tax One banker in
the city has expressed his willingness
to take all the bonds. There is no
doubt such bonds would sell readily
they would probably sell at premium.
This one mill tax. which is Just one
fifth of the amount called for at the
election on Monday, would reduce the
burden TO fall upon the taxpayers 10
| the very minimum amount, and no one
would object to it because all the
| amount derived from it would be ap-
piled Immediately in wiping out the
county debt. There is a loan against
the county now of $S5. 900 which draws
| 6 per cent interest, while these bonds
would earn but per cent, quite say
| ing to the county. If this five mill tax
| is voted on Monday. which is not prob
| able as there is strong opposition, but
| $4,000 year can be applied on the
old debt, and 1t will take six years to
| pay it all and stop interest.
Pays $4,000 n Year.
The serial bond issue proposed con-
templates one bond of $4,000 to fall due
and be paid each year out of this one
mill tax, from which a revenue of SILL
600 a year would be derived. the re-
mainder, or $1,000 to be used to pay
interest on the bonds The interest
account would get less each year and
the last bond could be retired in about
Is years During this time the extra
| tax would be but one mill or Just 10
cents on the 500 of assessed valua.
ton. The tax to be voted for on Mon
day is five times as great. In the bond
issue the taxpayer would know thai
the full amount was applied at once
by the county treasurer in removing
the entire county debt, and none of the
amount would be available for use by
the county board In this way there
is no chance for any of the money to
be misapplied. E. L. EASTMAN.