The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-04-06
AROUT BONDS.

1t is not the purpose OF The Her
aid and News to get into any discus
sion with any one in regard 10 the
bone question, but there are fe"
facts which the people should nave
and which should be stated so that
there may be no cause for misunder-
standing the position Of any one.
The principles laid down in the ar
ticles of Dr.. Mcintosh are absolute
ly correct, and are in accord with
what The Herald and News first said
about this bond business. The pur-
pose of the commissioners of public
works, as We understand their posi-
ton. is to do the very thing for which
DR.. Mcintosh is contendlng, so 1ar
as they are able so to do.
The sinking fund was created spe-
cilcally for the payment of the bonds
when they mature. That is the pur~
pose OF the sinking fund and no one
will say that it should not be 50 ap-
piled.
There are three issues of bonds
for the city, water, light and sewer
systems.
The $4,000 issue Of 1902 for sewer
has no sinking fund provided, and
when it comes due it will to be
either paid or refunded in full, unless
some provision is hereafter made.
These bonds run for forty years.
The issue of 1910 for $4,000, $780,
600 for sewer extension and $4,000
for extension of lights. There is
sinking fund provided for in this is
sue sufficient to pay the bonds at ma
turityx In the report of the commits
sioners the sinking fund in their
hands was put, in one item for both
bond issues which provides a sink
ing fund
The sinking fund for the forty
thousand issue is about S9,40O, and
should be deducted from the $42,40O
reported on hand as sinking fund
when we talk of the amount OF the
sinking fund available fori~the pay
ment of the $4,000 issue, which would
leave about $4,000 in the hands of
the commissioners in cash and Sc
curities for the $4,000 issue due in
1887. The t9wn still owes a little
over $4,000 to the commissioners on
the sinking fund which it is provided
to be raised. The remainder is New
berry college bonds $4,000; Chicora
college bonds $4,000; Silverstreet
school district bonds $4,000; City OF
sewer bonds $4,000, MAX /
ing a. total of securities of $4,000. |
we agree with DR.. Mcintosh, II
these securities can be turned into
cash it should be done and the money
applied in retiring the bonds of the
town, even though the securities
should bear a little higher rate OF
interest than the town refunQlng
bonds. !
But it is incorrect to assume that
the commissioners have the full
amount OF $42,40O either in securities
or cash to take up the $4,000 issue.
because the money in the sinking
fund for the $4,000 issue could not
be applied to these bonds. !
The $4,000 issue does not require
the commissioners to retire them in
20 years, nor does the statute make
it mandatory but it ia in the discre- !
ton of the commissioners. We think
it would be wise to use whatever
fund they have in so doing as far
as possible.
The following are provisions in the
bonds of the issue themselves:
"And whereas, the Mayor and AL
dermen of the Town Of Newberry, S.
O.. have declared by ordinance that
the foregoing \xecitals are true, ami
have created a sinking fund fcc the
redemption of said bonds at maturi-
ty, and made all other legal provis-
ions for the assessment, levy and COL. /.
lection of sufficient annual tax in