Palestine daily herald. [volume] (Palestine, Tex.) 1902-1949, 1909-11-01
SOME FAGTsAND FIGURES
Regarding the Bond Issue Election to
Be Held .Tomorrow-eet This
Information.
To the Taxpayers of Palestine:

To the Taxpayers of Palestine:
Gentlemen.-As there seems to be a
considerable opposition to the new
fire house proposition, and being
somewhat familiar with city affairs,
thought it would not be out of place
to lay before my fellow-taxpayers the
proposition from a business stand
point. The first and most important
of the opposition objections is that the
city does not own the lot. Well, let
us see. Some years ago there was an
old delapfdated house on that lot
which had been decided to the East
Texas Methodist conference in perpet-
uity, and the revenues from same
were, as many landlords can testify,
very precarious, at the same time the
building being a disgrace to the city.
Your city officials looking ahead as
all sound business men do, entered in
to contract with the trustees of the
property, securing a sixty year lease
on the lot at a rental of $4,000 per
year Now, please consider this lease
from business standpoint:
First. What is the lot worth today?
Some say $7,5OO.OO, others $1OOOO.OO;
but presuming, it to be worth only
100000, is there in this or any other
town any one willing to loan money
out at 8 per cent interest, which is
exactly what the city is doing if the
lot is worth only 100000, and in
ten or twenty years what will the lot
be worth? Yet the city will be still
paying its $4,000 per year. Surely it |
is cheaper to the city to rent the
ground than own it as business prop
osition.
Now, make the statement that the
fire house will not cost the city ONE
CENT. Let US look at that. from a
business standpoint Say the build
ing will cost s1S,O0OOO The bonds
will run forty years at 4 II per cent,
to be called in after ten years, at the
option of the city. Now presuming
the bonds will run the full forty
years, what will the city have to pro-
vide each year: First, 2 IL per cent of
the principal s1S,OOO.OO, which is
$4,000; interest on s1S,OOO.OO, at IL
per cent per annum, $4,000; total
amount to be provided each year for
forty years, $1,26O.OO. Against this
there is to be placed the revenues
that win be derived from the rent of
the stores. and rooms, which will not
be less than s125.OO per month, and
which will increase as the city grows,
making a present annual revenue of
s1.SS0.0O. And in addition to this we
have Ae-=-c----- -l.o,lsal y
Which will be an ornament to our city
as well as more room for our city of
ficials, which is badly needed. Some
may think that am specializing on
the proposition, and to those wish
to place the actual facts in regard to
our present city hail. When this
building was proposed there was, as
now, opposition. First, the taxpayers
objected to the extra taxes; second.
owners of business property objected
to city competition Now have either
propositions resulted in any way to
The detriment of the taxpayer or prop
erty owner? | think not;- rather it
has enhanced the property values, and
yet the city hall has not cost Pales-
inc one cent You don't believe it.
Well here are the actual facts:
The city hall was built in 1898, cost
ng $24,OOOOO, covered by forty year
bonds at 5 per cent interest, redeem.
able at option of city after ten years.
It's requirements were as follows:
Yearly requirements account princf-
pal 2 IL per cent on s24,OOO.0O,