The herald and news. [volume] (Newberry S.C.) 1903-1937, 1909-07-13
GOOD ROADS DEPARTMENT
By the Good Roads League.
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Will a levy Of two mills pay the IN
terest and retire 100000 worth OF
bonds in 10 years? The present levy
is little over $7,OO0,OO0 let 1t go at
$7,0OO,OOO. Two mills will give $l4,-
900 each year. Suppose 1t takes
wears to expend the $300,OOO certain
w it will not take less time. That
means that we will have outstanding
at the end Of the first year $l0O,0Oo
worth Of bonds and the interest
charge will be $4,000, leaving $1,000
to pass to the sinking fund. The
second year we sell another $l0O,ooo
worth Of bonds and tire interest
charges will be $4,000 leaving $4,000
to pass to the sinking fund. The third
wear the balance of the bonds are
sold, the interest charges are Sl3,3OO,
leaving $500 to pass to the sinking
fund for that year and every year
thereafter. Here then is your calcu-
lation after paying the interest each
year.
$4,000 compounded for 40
years at 7 per cent. ...Sl42,ooo
$4,000 compounded for 80
years at Z per cent. :7O,ooo
$500 annually for 80 years
compounded at 7 per cent. 92,32O
Total sinking fund end OF
40 wears :. .. >. .. ..$3O4,9 ,92O
No account is taken in this calcu-
lation of the interest the banks Will
pay during the 8 years on balance lett
with them while the work IS beng
done. This would swell the total.
We have assumed that the assessed
value Of the property in the county
remain stationary. We have assumed
also that the sinking fund can be plac-
ed at 7 per cent. AS to this last,
let US say that the bill provides tor
placing this fund on real estate first
mortgages. Money here IS worth 8
per cent. today. It has been COM
manding that rate for years. Several
large college endowment funds are
loaned at that rate. A number OF for
eign and local loan companies have
placed many thousands Of dollars on
first class paper in this county at 8
per cent. net. Why can't the county
get 7 per cent? This fund will be
small to begin, with and will gradual
ly increase, thus giving opportunity
to place it properly. It is not unlike
ly that s per cent. can be had for
this fund for years. The time may
come when lower rate may obtain
but that will be more than made up
for by the increased assessment.
Assessed values in this c1onty are
increasing rapidly as is shown by the
tax books. No one doubts that they
will continue to increase. Even now
an addition to one Of the mills is be-
ing made at cost Of S25O,OOO, and
there are other things on foot. There
can be no question, then, that a levy
of two mills will prove sufficient to
paw both interest and bonds IN forty
wears. If the county keeps up her
present rate of development two mills
would pay for the roads in less than
80 years. We have not taken into
consideration the development that IS
sure to come because of the good
roads themselves. This will prove
to be the greatest factor of all in our
future development, unless NeWberry
proves an exception.
Here is a PARAGRAPH from a letter
written by a resident Of Dodge City,
Kansas, on the effect Of sand clay
road, This letter was written April,
1909: ga colony Of Germans settled
on the finest kind of wheat land, were
going to leave on account Of the IN
convenience Of travel in marketing
their wheat, but now they have road
smooth enough for race track. 1t
has increased the value of their land
at least q per cent. and they are we'll
pleased to remain.
Consul Francis P. LOOMS in re-
porting upon the road scystem OF