Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-07-19
RoAp AND BRIDGE WORK TO BE
DONE FOR CASH
HEREAFTER. -
SUPERVISORS ANTICIPATE
BOND ISSUE TO GET THE CASH
Issue Of 100000 Of Road and Bridge
eonds Sold to Be Delivered Jan. I,
1s2o-Buyer of Bonds to Take Up
Warrants as Fast as They Are
Issued and Carry Them.

The county, insofar as its bridge ana
road work is concerned, was put on
cash basis today when the board OF
supervisors this forenoon anticipated
expenditures for roads and bridges by
selling 100000 worth of bridge and
road bonds. The result OF this move
in county financing will be that here
after contractors will bid on a cash
payment basis. Experience has already
shown that the work will be taken by
contractors at lower figure than II
they accept ordinary terms and pay
ment by warrants.
The bonds were sold at public bid
ding to George VI. Bechtel & Co.,
bankers, OF Davenport. for a premium
OF $500. The bonds are to be delivered
Jan. /, 1920, will draw interest at the
rate OF AZ per cent per annum and
will mature serially in from elevn to
twenty years after date of issue. Six
~ thousand dollars worth Of the issue
will be road and sac, 900 will be bridge
bonds.
Warrants to Be Taken Up.
The interesting detail OF this trans
action Is not the sale Of the bonds, but
the obtaining of money in advance OF
the issuance Of the bonds on county
warrants for road and bridge work.
Included in the contract with the buy
ers OF the bonds is an agreement that
Bechtel & Co, Will take up road and
bridge warrants until Jan. !, 1920, at a
rate OF s per cent per annum.
This arrangement viii give the coun-
ty the cash with which to pay con-
tractors. vino otherwise ~cGlG have e
take the warrants and discount them
at some bank to get the cash. Bechtel
& Co.. will carry the warrants which
will be refunded and returned to the
county when the bonds are issued.
Bids For Cash Hereafter.
From now on for the rest of the
year at least notices Of lettings Of
bridge and road work will include the
agreement Of payments in cash month
ly, or whenever estimates are made by
the engineers for the county. The sup
ervisors rightfully expect a very ma
terial saving by lower bids on contract
work.
An example Of how the cash basis
works in contract lettings was demon
strated recently when the low bidder
for the Clemens road grading joo,
lowered his bid an additional "a cents
per cubic yard when he was told that
payment would be made in cash.
Cash on Several Jobs.
Several Jobs will come under the
cash payment system this year. In ad-
dition to the Clemens Job, the re-
mainder Of the LeGrand-Gilman road
work will be paid In cash. The grad
ing jobs on the primary roads will be
paid for in cash and the new bridge
over the channel Of the Iowa river in
the East Main street job will be for
cash.
The saving to the contractor, which
will enable him to bid closer on a cash
job than otherwise. will be that, first,
he will not have to borrow much OF
any money for his material and labor:
second, he will not have to accept war
rants and discount them ! to . per
cent to get the cash.
The supervisors, who hold over into
next year, are Of the opinion that this
arrangement of getting money in ad-
vance on warrants so that business can
De done Oh a cash basis, viii be adopt
ed permanently.