The commercial. (Union City, Tenn.) 190?-193?, 1915-03-05
Road Bonds.


our road money and have practically
no better roads than we had forty
years ago. Then we conclude that
the system of road building is
wrong. Lately many of our people
took the notion that the King drag
system was the solution of the trou-
BILE. A great deal of work was done
with the drag and some mighty good
work, but when the winter rains
and the freezes came our roads were
no better than they were before the
drag. We were back again Just in
the same old way as far as dirt roads
are concerned. The roads in Obion
County were just as bad this winter
as they have ever been.
Then if we cannot make good
roads of dirt, what shall we do? The
next step is the gravel road and
have we the money 10 build them?
You say no, and no doubt the state
ment is true Then we cast about
to see where the money can be OBJ
tanned, and the only practical re-
source is a bond issue. No other
plan has been suggested.
The bond issue to many people
has always been scarecrow. We
simply borrow so much money and
issue bonds to secure the bondhold-
ers. There is no other way to Dor
row the money, you say, therefore
we borrow from those who have it
to loan on our bonds that it will be
paid at a certain time.
The bonds will be tioated at per
haps five per cent The County
Court assesses taxes to pay this in
terest and an additional fund of
about the same amount to be used
as a sinking fund with which to pay
the bonds as they become due
Therefore we are practically borrow
ing money at five per cent to build
roads. The other half of the tax
is to pay the principal. +.
Rest assured the bondholuers will
require that a sinking fund is pro-
vided, and that no Irregularities
shall take place that will involve
the county in bankruptcy. Rest as
sured that our people will not toler-
ate plan to issue bonds without
providing a fund for the payment of
the principal at maturity. No bonds
should be issued otherwise.
Then what is the difference in
borrowing from bondholders, for
that is what it means.
The next question is which is the
better-to be out of debt without
good roads or in debt with good
roads?
Once an old-time business man we
knew made the statement that citi
izen is never worth anything until
he contracts a debt. Beforehand
he is stimulated very little to own
or acquire anything, but with a debt
hanging over his head he makes
determined effort to pay and be-
come his own landlord. This is
borne out largely by the facts.
The county, on the same princi
pie, has never gone in debt to build
roads, and she has none, practically
speaking. With the proceeds of a
bond issue, properly managed, we
would go about at once to build
good roads and, stimulated by an eff
fort to keep our finances in good
condition, we would not stop until
these roads are built and built right.
AS the years rolled on land val
ues would increase and the tax rate
for these bonds would be reduced.
Our county would improve more
rapidly within a few years with
good hard roads than it has here
tofore in half a century. Our
schools would be improved. We
would have high schools. Popula-
ton would increase. Business would
be fourfold what it is to-day.
But what if we should not join
the good roads movement and con-
tinue the stand-pat policy. Other
counties would get all the State aid,
the good schools, prosperity and
progress, expand and increase, while
we dwindle into comparative insig-
nificance.
Which do you prefer?
There is another point in the
question Many of the older citi-
zens are acquainted with the facts,
especially the pioneers of years gone
by, of how they struggled andtoiled,
faced hardships and denied them