Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1915-07-22
CAN THE BONDS BE SOLD.

Cumberland and fortress counties
on the Short Line of the Dixie High
way, or Dixie Highway No. 3, are
having trouble in disposing OF their
bonds, and it is proving out just ex-
actly as we have been claiming, or to
quote the Crossville Chronicle, pa
per favoring the bond issue in Cum
berland county, "no person having
money to invest can afford to own
five pei cent. bond or even six per
cent bond and pay from one and halt
to three per cent. in taxes.
The following is clipping from the
Chronicle, stating the situation:
"The Cumberland County Road
Commission opened the sealed bids
Monday at Q D. m. and found that no
hid made quite reached par. The en-
abling act specifically specifies that
the bonds shall not be sold for less
than par and that no commissions
shall be paid in any way.
"From letters eceived it is learned
that the bond market is in very un'
settled condition as a result of the
the United States and Germany. That
is considered the reason why the Dlds
received were below par aud thus
made the sale of the 800, 900 offered
fail to find buyer.
"They will Immediately be readver-
tised and the sealed bids will be open
ed August a.. This time it is felt
will be sufficient for the final ADJUST
ment of the controversy now on De.
tween this country and Germany or at
least the matter will have resolved IL.
self into such shape that all rear OF
war between the two countries Will
have vanished.
The $3.50, 900 of road bonds offered
by Fentress county failed to sell when
offered few days ago. The same
general conditions are thought to nave
caused failure. Fentress county mas
ready ertised and it is probable, they
will end a bidder at the next sale.
"Just now the lame place IN the
laws of Tennessee relative to state,
county and municipal bonds STANDS
out very prominently. In this state
owners of such bonds are required to
nav taxes on them, while in many oth-
or states such bonds are not SUBJECT
to taxes and can be held by home peo-
pie. But for the tax on such ponos
there would be several Thousand DOL
lars Of the bonds held in this county
but as it is no person having money 10
invest can afford to own hve per
cent. bond or even six per cent nono
and pay from one and half to three
per cent. in taxes. y
In Cumberland county, 30 we I'M
derstand, fght was made against
bonds for the sake Of any particular
road in county, and compromise ar
rangement was made to divide the
money among differ ent roads to bene-
fit everyone. Not so very recently we
noticed in the Chronicle that fresh op-
position had arisen owing to dis
position to break faith in the matter
and on the outlying roads expend In
significant sums. The same condl-
tion exists in this county today. The
east valley road has had its appropria
ton of $40, 600 swiped from it in the
legislature and $4,000 placed on the
West Valley road, and the remaining
$1,000 can be put sin the corporate
limits of South Pittsburg. The
Rankin Cove road has also been rob-
bed of 81 800, and that amount can be
placed in ''the corporate .liimts of So
Pittsburg"
The Cumberland and Fentress coun-
ty difficulties are ahead of this county,
for with tax rate to go as high as
$40 on the 800, none of our monied
men are going to buy Marion County
Bonds. 1t wouldn't be practical in
yestment. They get per cent. from
the banks, which with tax rate of
$1.90, is about Q per cent. tax. The
bonding of the county for additional
s1OO. 900 means nearly 81 per cent
tax, and Marion county bonds shall
draw interest "not to exceed 5 per
centum per annum." In other words
he would gain one-half of one per
cent. over the transaction, and to get
tkis one-half of one per cent. would
plunge his home county into debt last
ING for years. In addition to this his
own tax values would increase so that
with higher rate to provide for
bonds he would pay increased tax val
ne on his real and personal property.
No man with ability to think is going
70 do that, and the Cumberland and
Fentress county money-holders, have
woke mn to the situation. Marion
Corntv bonds shall not be sold for less
than par value, that is less than 800
or $1,000 as issued. It will be good
thing for the taxpayers of this county
IL those bonds are never sold. The
people of Marion positively do not
want the reckless dealing in bonds OF
Hamilton county, where it is prob
lem to keep interest paid. AS the
bond law says that no bonds shall be
sold at less than par the people
should keep a careful eye, and see
ALo+ mona ore sold for less