The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-03-28
COMMISSIONERS
ARE RESTRAINED

Several OF the banks OF PlentyW00d
acting in concert, have retained
Babcock & Ellery, prominent local
attorneys, and have secured an in
junction against the board of county
commissioners, restraining them
from preceding further in the de-
livery of the funding bonds in the
sum of two hundred thousand dol
lars, recently sold to an eastern bond
house through the Sheridan County
State Bank. The case will come on
for hearing before Judge Hurry at
the court house this afternoon.
It seems, as reported some time
ago in the Producers News that the
county commissioners decided TO
fund the outstanding Indebtedness,
which was represented by warrants
to the amount of $200,O00, and bids
were asked for.
Several of the banks representing
several bonding companies appeared
before the commissioners and bid on
the bonds. Most of the firms bid
57a per cent on twenty-year bonds,
but the firm represented by the
Sheridan County State Bank, bid the
bonds in for per cent and was
awarded the bonds. However, after
ward, the commissioners decided to
buy serial bonds, or bonds which
could be paid off by the year as the
sinking fund money became avail
able, instead of having the money
laying in the banks accumulating for
twenty years and drawing two and &
half per cent, while the banks loaned
it to the farmers at the rate of
twelve per cent and sometimes a
bonus.
The interest on serial bonds always
costs a higher rate of interest, but
as a usual thing, the final cost is
much smaller, meaning considerable
saving. In fact, the figures that
i will be presented to the court will
show that the county will save
$4,000 by the purchase of Serial OF
Amortization bonds, and the asser-
ton that has been given considerable
publicity to the effect that the coun-
ty loses $4,000 by the transaction
does not appear to be true.
It seems to the Producers News
the purchase of serial bonds, is about
the first wise and to the public in
terest thing, that the board of coun-
ty commissioners have yet beer
credited with doing, and it is nc
more than fair that the devil should
be given his dues. That the banks
should be bitterly opposed to the
policy of buying serial bonds in
stead of allowing sinking funds te
accumulate to be deposited in the
banks at a low rate of interest is OBJ
viouS.
However, the criticism that the
board of county commissioners die
not call for bids on serial bonds, but
on twenty year maturity bonds ane
then after the award was made
change to the serial bonds with E
higher rates of interest without Civ
ing all comers a chance at them, is {
i just criticism, and the sooner the
county commissioners get away from
this kind of work, the better it viii
!, be both for the taxpayers and those
, dealing with the county.
And yet, to be fair to all concerned
it is no more than right to say tina
it is very doubtful and very unlikel,
/ that the bonds could have been solo
j any cheaper than they were sold a
for that kind of bonds, yet the prin
| ciple of the method of doing business
is dead wrong.
This paper will report all of th'
. facts as brought in the hearing
which win probably be more to th'
I point than what it is able to repor
/ this week.