The McDowell times. [volume] (Keystone, W. Va.) 1904-1941, 1917-02-09
GOOD
ROADS
RAISE FUNDS FOR HIGHWAYS
important Saving Effected by Issuing
Good Road Bonds on Deferred
Retirement Plan.

iirorn TIE lrif"d state Department Of
Agrie .lt1re)
People II "a county intending e.
rs'i~,. funds for hishwa. Improvement
srlld do We'll L. CONSIDER Tn, a,itnn-
taseS To them Of The deferred serial
plan over The ordinary sinking fund
plan of retiring l"n- term bonds Tn
Ter tn serial plan. certain amount
IL iou,i> il retired each Year and th..
i'"fd> - Retired cssi~.. To- be- an in-
t~r,~f claTs.' "n the community. Tn
ter the sinking fund plan non. Of ih~
t"n,~ il rrtifahlr until tn. end "f -
definite period. anil thu. entire sum
raised bears interest for the entire
life of th. bond The county. there
fore. pays interest on the money -
borrowed AMI ir addition sets aside
each YEAR ~ >inkin, fund an amount
sufficient q" retire all the bonds wh..a
They become dine The sinking ft.n.l
- deposited with banks AMI earns
~,'ilr interest This interest ordi
narily j. only three pr cent. whereas
'h" county has q" pay five or six I,.i
cent 10 its b"ndhrl,irr> The serial
Plan - "A much cheaper method of
raising money for road improvement
even when The sinking fund earns I'm
t~rrSf ~ high a. four pr cent. ail.i
ia the opinion of the road specialists
81 the department should be utilized
whichever ~ IL possible to market -.
rial bonds
Ira "A study of the road bond ISSUES
~ several counties. j. T. Penny
hacker AMI VI. -. EldridSc Of IN. ,iivi
sion 81 road scunoinic>. Office. OF public
roads and rural engineering. found
that IN" serial plan. n il had been
adopted 10y several counties. woul,l
have saved The taxpayers I'm ola.
county Sl54.3'3 Ina another county
>>p. ar. and i'm third county So. 81.
over the other plan with >imkin-
fund hearing interest AT three per
cent. With n sinking fund earn
Ing four per cent. the savinc
would have run AZ high rs So ~
I'm one of these counties. TheS.. con
cluSi"n> APPEAR i'm the recently pub
Ii>he'i Department Bulletin x,3. Ec"
n"ruic Surveys Of County Highway Ia
prOvemrnt
The following concrete example,
are taken from this bulletin:
"ln Dallas County Ala. the bond
amounted To Ss5OtDo. payable IN ~
wears at five per cent. Assuming thu
sinking fund To- hear ihr., per cent ia
;cre>t. aS set forth in the chapter or
'alla> county. the total finnncinI bur
len to the county for interest and IN.
liquidation Of the bonds during ia.
Dyear period will be S745. 7Us ~. IL
DUAL amount Of bonds at the shin.
rate of interest. IL issued under th.
deferred serial bond method. with IN.
irst bonds payable six years from IA.
iaie Of issuance and an equal amour.
payable each year thereafter for {.
years. would cost the county AT TN.
end ~ - years SsssJVo. or a differ
''nce. a. compared with the sinking
fund method. "f $40 7Oe II four Del
cnt could be- realized on the SInkin.
iund Instead Of three per cent. IN,
saving for the deferred serial plan
over the Sinking-fun plan would still
loo Si7.2l6.
i.auderdale county. MiSSi~~ipf,i
hich issued $-OoWO 81 five aud fiv.
MI "ne-half per cent bonds. adopt
u the deferred Scrial-bond method
nth the first payment coming n year
rom the date 81 issue and the las
''ayincnt -, years. II the county ha,
sued the bonds on the 5-2I-ycnr baSi.
he cost would have been S.Eri.S75. a.
c"fnpnrs-d with the cost Of th. baSi.
.dopfed Of S952.2:s3. or dinerenc,
II Sss53G7.~
Even In the ease ~ small i~Su,
De advantage of the serial plan 1.
Illustrated in Dinwiddie County. Vir
-inia. This county issued $1O5.OOO oi
Eve and six p~r cent bands. payable IN
% years. hut the bonds ARE cullabI.
after ~ years. Assuming that they
VIII De- retired at The end 81 p, year.
"a Tho Sinki' Z fund plan. with inter
~ "r sinking fund az four per cent
hr total r',~f would be SsISV;I
rherea~ n they had adopted the q -,
t'ar serial method fh,. cost would b.
-ul.lVO. OF a difference Of SIGe31.