The Raymer enterprise. (New Raymer, Weld County, Colo.) 1910-19??, 1919-07-31
BOND ELECTION
CALLED AUGUST 16'rH

! Saturday, August 18th. They will
also notice by consulting the notices
that the polls will be open longer
than the required time, opening al
three o'clock in the afternoon, lear
ly enough to allow those living far
therest away to vote and have ample
time to get home by chore time, and
keeping open until ten o'clock at
night, SO that the busiest man
should be able to get in and vote
| after full days work.
We think all Of our readers under
stand that the proceeds from the sale
OF these bonds will go to take up
warrants, already issued, registered
and bearing 6 percent interest, so
you are asked to replace a 6 percent
obligation with 5A percent obli-
cation.
At the risk of being tedious we
will repeat some things stated in a
previous article.
Saturday Mr.. G. N. Phillips. re-
presenting the firm of Benwell, Phil
lips, Este 4 Co., bond brokers Of
Denver, was In Raymer and closed q
contract with the school board by
which they agree to buy 100000
worth Of school bonds OF this dis
trict bearing 5N percent interest.
and for these bonds the firm will pay
par and accrued interest.
The election will be called just as
soon as the proceedings and notices
can be. prepared. The proceedings
are more technical in a funding issue
such as the one proposed, than in a
straight building proposal, so that
little more time will be required.
The proceedings will all be prepared
by the bonding house attorneys, and
the work will be done by them for
no extra compensation.
The contract made with the bond
ing house, Is Of course. only condi-
tional contract. and not binding un-
less the voters ratify the proposition
at special election to be held at an
early date. II the proposal does not
carry, the bonding house Is out the
legal work done on the matter.
In last weeks Enterprise VIC pre-
scented some facts In relation to this
matter, and we have been urged to
repeat the article again this week,
and urge those who may have failed
to read 1t last week to do so now
The article in question follows:
Representatives. OF four different
bond dealers were in Raymer Tues
day to negotiate a bond issue for the
purpose OF retiring outstanding
school warrants.
There were Tuesday morning, ac-
cording to a report from County
Treasurer Phillips by telephone.
$30,579.14 in registered warrants.
He informs us that there remain
something like $4,000 of school tax
to be collected which will be avail
able to reduce the amount OF these
warrants in August or September
H0wver, II the tax when collected,
Is applied to retiring warrants, new
warrants will have to continue to be
registered, so that the amount would
be approximately the same again in
short time.
Upon these outstanding warrants
the district is required to pay six per
cnt interest. We can float bonds at
~ per cent. The direct saving in
interest will be then 1925 per year
But as a warrant has no certain
day Of payment. it is not SO desir-
able a form Of investment and war
rants are being discounted 2 to 6
per cent.
This discount Is considered by
teachers, drivers and dealers. so that
teachers are offering to hire for less
money, II the district agrees to make
the discount good.
This brings the interest rate which
the warrants really cost at the pres
ent time to 10 per cent or even more
When all school warrants are reg
istered and discounts prevail, the
district will pay the discount In in
creased wages and prices; so the IN,
terest rate will really be about 10
per cent, and the saving around
$1,000 per year in interest charges.
Some patrons OF the school have
thought that the bond issue would
mean higher taxes. The fact Il that
the bond issue will assist in keeping
from raising the tax levy.
The warrantsmust be paid togeth.
er with the interest. The present
tax levy is required 20 pay the run
ming expenses of the school. The
only way then to get away from the
registering of warrants Is to issue
bonds or. increase the levy so as not