The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1917-05-25
LIVE TOPIC Is SALE
OF COUNTY BONDS

There has been continued discus
sion OF the bonding proposition in
Lenihi county. by which 1t is sought 4
10 raise sI50.000 for highway pur.
poses This object is to be carried /
out If the effort 10 sell the bonds be /
not blocked by some sort OF legal
monkey wrench thrown into the OF .
| fical machinery in making the sale I
/ There are lawyers who contend that
| the proceedings leading up To the /!
| sale as well as the sale itself may be 1
| Irregular A review of the whole |
matter is therefore of timely interest. |
ON the 18th of April, 1917, bids for
the $l50.000 bonds were opened. The
best bid for-the bonds at that time
was $150.0o0, the principal Of the
bonds. plus accrued interest TO time
of delivery, plus a premium OF $s.O50.
This bid was for per cent bonds.
on the 18th day of May. 1917. the
same $4,000 bonds were sold 10
bear $50 per cent interest. without a
premium, for the face value.
The difference between the price
bid for these bonds at the April meet
, ing and the price at which the bonds
we're sold '- succinctiy stated as fol
, lows:
r Premium bid at frst bidding S3.O5O.
One-half of one per cent interest on
the $3.50, 900 for one year is $3.50. The
! life of the bond is 20 years. therefore
? the interest loss without nguring the
2 interest on the interest payments) is
$4,000.
. The interest loss to the county by
{ reason OF the failure to accept the
; $1,000 premium for the life OF the
, bond is the sum of $3,35S Therefore
0 the clear loss $2l, l,4O5
e In computing the foregoing loss TO
: the county no count OF interest on
4 the added interest Is made and IL the
} loss Of interest in this were comput-
e ed the clear loss would be much more
e than the foregoing,
d On the other hand, II the county
d should be able to draw interest on
e certain certificates OF deposit, which
II are to be used in paying for the
n bonds when actually sold. and IL that
J. transaction should be legal and right
s that would serve to cut down the loss
e TO great extent. II has been said
v that such method OF paying foi
rs bonds OF the kind Is not unusual al
Ie all although it would seem to be un
lawful in view of the express man
q date of the law itself. which declares
ID ra the bonds shall be sold for cash
h II sd for cash the county would de
Is posit such credits with the loca
IN banks and obtain valid securities ant
r. interest besides for the deposits. tn,
lR rate OF interest being somewhat les
es perhaps than the successful bidder
are nov to pay, IL being stipulate'
at that whereas the bonds are 10 bea
in 5l5 per cent interest paid out by tn
ps county, the certificates OF deposit Ar
ne to bear 8 per cent interest paid bac
or to the county.
lie II has been stated by the count
be auditor that at the first offer OF tn
ID. bonds the best bid was that whic
an came through the Citizens nations
ng bank of Salmon. II should be sal
of that all the bidders AT that time a'
AZ, vised the county commissioners I
W sell then on the prediction that IN
bond market would decline At N
It's time of the second offer of the 81
in curities there were fJuT urus but ol
Ia. Iy two of them complied with u
ais terms These were bids that can
ats through the Pioneer bank for itse
in and Keeler Bros OF Denver and fro
iii the International Trust company, ais
ce, of Denver The Keeler-Pioneer b
ats was accepted with notifications
on nalIy agreed upon as follows: Par
ge- 5iL per cent for the issue, the bon'
he to be paid for as the cash is need'
yer out OF the proceeds OF certihcates
nd deposit bearing per cent Interest
ar. II is said the county commissions
ats were induced TO accept this bid
un- the promise that the certificates
md deposit would be guaranteed 70 q
as satisfaction Of the board. II Is doul
VS., ed BY persons whose judgment a.
,ed | integrity are sound that this can
IVY done in the manner proposed A c.
fat tificate OF deposit II by no means I
cash. for which the bonds must
the sold If sold according TO law. II
eat | said that one bank cannot even
rel pcutp valid guarantee Of the cert
in Gates Of depnsit of srothe stmi
vor institution Besides II is claimed
ing We have not seen II verified that p'
nay lie moneys beinnRinR in Idaho cam
ice lawfully be deposited outside q
GRO state Certainly II would seem To
i've against sound public policy 50 20
ked posit such funds, when this 81
lme needs all the ready money ayaila
DDS. from all sources.
and II our own Lemhi county banks
ma this money on deposit they mil
lies, and probably would BE- able 10 m;
oers more accommodating loans TO
o a own people Tor business ehAefpflt
eye The Recorder has no Interior :
poses 20 suhscrve in publish
'heT what are known to be facts and
in have endeayorpd 70 state them ~
P OF The FUN light should Al all times
pro turned in upon such an import
. n transaction. involving ss Il does
eEe. generations unborn as well as
Their taxpayers now living We have
lowed the record in All that has b
said on the subject.