Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1919-05-02
THE ROAD BONDING QUESTION

When the question of bonding the
county for road construction was dis
eussed before the chamber of COM
merce, / was inclined to favor the
construction of the roads under the
Donohue law rather than by bonding
the county, but after | had made
some further investigation of the
matter | came TO the conclusion that
the bonding system would be the bet
ter one for this county to follow;
and as the result of my investigation
may be of interest to others, | sub
nit the following data and calcula-
tions:
The assessed valuation of the
county is $46,5O1a13. The farms
and improvements are valued at
s25, 350,410. Personal property is
assessed at $6,734,655 and city prop
erty and railroads $14,491,62S, but
I have no data as to what part of
ghe personal property belongs on the
EARN, but l assume that it is about
half. This makes the taxable prop
erty of the farms of the county
amount to $2S,7OO,00O or about 7-l2
Of whole assessed valuation of the
county
Under the Donohue law the cost
Of constructing roads is levied as fol-
lows One-half is paid by the whole
county, for which bonds may be is
sued, to be redeemed within 20 years.
One-fourth of the cost is levied
against the road district in which the
road is located, and one-fourth is
levied on the land specially benefit
ted, which is all land within two
miles of the road The amount levied
against the district and against the
land benefited must be paid within
five years.
Now If we assume that we are to
build 200 miles of road at a cost
of $2,000,000, which would be an
average cost of $4,000 per mile.
and that it would require five years
to complete the job, under the Dono-
hue law, the farms of the county
would have to pay three-fourtbs of
the cost, or S1,500,000 and interest.
while under the bonding system the
farms would only pay 81 100000 and
interest.
81 the bonds run for 10 years with
interest at five per cent the Interest
on the bonds would be $500 ZOO less
such amount as might be received as
interest on the sinking fund which
would perhaps exceed $4,000.
Under the Donohue law. owing ia
the fact that one-half of the cost
must be paid within five years. the
interest account would be $650,0OO,
If the bonding system should he
adopted, and the bonds made pay
able on call and due in ten years, and
ene-tenth of the principal levied and
collected each year, and the interest
raised to six per cent, then the in
terest account would only be 1884,
900, or S150,000 less than under
the Donohue law and about $500. 900
less than under bonds payable IN ten
years without option of paying be-
fore maturity, and at five per cent
interest.
SIX per cent bonds could be sold
10 the people in this county pavabIe
on call, which would keep all the
money at home, a result worth CON
siderable from an economic stand
point
Another matter worth CONSIDERING
Us mat under the Donohue law. if
any district refused to take the stems
necessary to build the roads in their
district, there would be uncompleted
roads in the county which would re-
duee very materially the value of the
completed roads, while under the
bonding plan, system OF roads
could be planned and complatad
within the five years
THOMAS NELL.