Martinsburg W Va evening journal. [volume] (Martinsburg, W. Va.) 1913-1920, 1918-04-15
COUNTY BONDS ARE
EXPLAINED TODAY
Continued from page one)

Spouse. AS consequence, the leg
islature in 1868 passed an act char.
tering the Martinsburg & Potomac
Railroad Company for the purpose Of
making this extension. As amended
the act authorized taking a vote OF
I The people upon the question OF whe
( ther the county would subscribe to
:, 400 shares OF the capital stock Of
/ said company TO aid in the construc-
I tion of that part of the road running
between the river and Martinsburg
i The estimated cost of the road as far
as Martinsbur. was about 5000
The vote was Ia in 1870 and re-
suited in an crcs 1Gelming majority
| for the subscription. In 1871 the
county therefore issued and deliver
ed to the railroad company SO 1920
year non-taxable coupon bonds TO the
/ par value of $120,000.00 representing
/ the one-half of said subscription. and
withheld the other half until the com
! pletion OF the road TO the Frederick
line, In 1877 the legislature author
lied Che creation of sinking fund
for the retirement of said bonds, and
also provided that the same might be
funded at a lower rate OF interest.
The refund was erected and new
issue OF CO 1888 year coupon bonds
was made in December, 1880, to the
EAR value of S105,0o000; these new
bonds were sold and the proceeds
applied 10 the retirement Of the So
Issue then remaining. In 1895 a fur
ther act CT the legislature was OBJ
tanned authorizing the funding Of
said indebtedness at still lower
rate of interest and accordingly
last issue of 49s 1888 year bonds was
made and the proceeds from their
sale applied to retiring the GO issue
OF the last issue there remains out
standing and unpaid SOL, 10000. The
interest has been paid. These bonds
mature in 1879 and no provision has
been made effective for their retire.
ment when due.
II will also be remembered, simply
las a matter of history that when
completed as far as MIf,tinsburg work
ION the projected extension stopped
for quite a while. The county refus.
ed to put the additional $40 10000
OF bonds covered by its subscription
The railroad company then owed
1851 100000 OF principal and about
$l40,000.00 additional las interest, on
mortgage obligations and was unable
longer - finance the enterprise. Ac.
cordingly a suit in chancery was
brought to foreclose the mortgages
upon its property and resulted in
sale of all the corporate property and
franchises The purchase price was
inadequate TO pay the liens; the stock
holders, therefore, received nothing
The purchasers of the property in
time assigned their purchase to the
Cumberland Valley Railroad Company
which subsequently completed the
rcld 10 Winchester without local H.
nancial aid, and it stands today, in its
relation to the commercial and in
dustrial interests of the county,
lasting testimonial to the wisdom and
fores ght Of progressive electorate
But ten years OF grace yet remains
before these bonds are presented for
payment; no definite steps have been
taken 10 meet this demand; the coun-
! ~ court views with concern the
grave responsibility passed on by its
predecessors to il and yet feels that
the honor and integrity of the people,
no less than the legal liability OF the
county. must be protected, and there
fore invites a full discussion OF the
matter prior to its coming levy
term,
( Mr. Lemly has treated the ques-
ton in frank and timely manner,
and. after acquainting himself with
all the circumstances of the Case. has
1 formulated a recommendation which
is worthy OF serious consideration
While he does not undertake to say
that the Tax Commissioners office
will insist upon the adoption of his
recommendation at this particular
time, he strongly intimates that the
office will insist upon some step be-
/ Ing taken in ample time to meet this
I obligation at its maturity Because
Of its completeness and reasonable
mess, and as offering possibly the
livery best solution Of the matter, hi
Recommendation is quoted in full as
follows: (.
1 Outstanding Bonded indebtedness.
On January /. 1918, Berkeley coun-
ty had q bonded Indebtedness OF
$10l 100000 as follows:
Issue Of January I, 1896, Refundins
Bonds.
This issue was authorized by an