The log cabin Democrat., 1920-11-16
SI25,O00 IN BONDS
 SOLD FOR SCHOOL
S65,OOO FOR BUILDING
Will Remain to Credit of District After Receipt of Funds to Put School
 on Cash Basis.

5 One hundred and twenty-five thou. sand dollars of bonds of the schoo
 district of Conway were sold by the / board of directors last night to the Hanchett Bond Company of Chicago } at the price of 93 1-2 cents on the dol lar net to the d strict. The sale was consummated after a period of severa months in which the directors have been seeking to place the issue, in or
 der to secure the funds with which to retire the floating indebtedness of the district and to erect new building.
 In view of the present financial condi-
 tlons the price is regarded by the di- rectors as q very satisfactory one.
 The issue of the bonds was sold last
 summer to R. C Hebron, a Little Rock broker. at g. cents on the dollar, but due to financial conditions Mr. Helhorn was unable to carry out his contract, and had notified the board that 90 cents on the dollar was the best price he could now pay on the issue.
 Under the terms of the contract with the Hanchett company, S56, 100 In cash is to be paid to the district on January l next, this amount rep resenting $60000 in bonds less the discount of 12 per cent The re- maining $65,000 is to be retained in an approved depository, subject to with drawal by the district when needed for building purposes, or within one year from January 1, 1921. For the S65, 900 withheld the prchaser is to pay the district the same rate of interest, 6 per cent, as is borne by the bonds, thus offsetting the interest. The expense of printing the bonds and all legal ex- penses in connection with the issuance is to be paid by the purchaser.
 The bonds are to dated December 1, 1920, and all of them are to mature 20 years after date, or on December 194C.
 The sale was made upon condition that R. G. Hebron agree to cancel the contract which was made with him for the purchase of the bonds at 95 cents, but no difficulty is anticipated in securing this release.
 It will require practically all of the $56,100 to pay off the warrants now being carried by local banks, to dis charge other indebtness of the dis trict and to leave a cash balance on hand sufficient to operate the school Ot Il hn r1n of HA ing to Secretary w. B. Clayton of the board of directors On account of the big increase in enrolment and the necessity of raising salaries the defi- cit in the schools revenue is running much bigger this year than ever be- fore. It was necessary to purchase a residence near the school campus at a cost of $5,000 and convert it into temporary school building. to relieve the congestion. The cost of fuel was much higher this year than ever before and 1t has been necessary to incur much extra expense in repairs to the 1 building. In the past few days the chimney of the steam heating plant has been found to be cracked and con- demned as unsafe, necessitating com plete rebuilding.
 Plans for the erecting new build ing with the remaining S65 GOO avail able from the bond issue have not been matured, MT. Clayton said The board has decided to wait a few months until the prices of building material become more stabilized before making any plans. It is their belief, he said. that if the present tendency toward lower prices continues it will be pos s hle to erect with $65 900 a building which would have cost S10O 900 if built this year.
 Another important feature in con nection with the bond sale is that it will eliminate any possib lity of sub scrihcrs to the $25000 school aid fund raised by the Commercial Club last January from pleading that the first payment, due on November Is this year, should not be collected The cards on which the subscriptions were made conta ned the provision that the subscription was conditioned unon the floating of a bond issue of $l00 GOO by the district. The condition as stat cd on the subscription cards was word-
 cd as follows: "If the school district
 does not float bond issue of $100000.
 including the present issue, this obli-
 gation is to be void"
 At a recent mectine the board em-
 ployed it's president, W. A. Gibbon to
 collect the first payment on these sub scrip'ions, which aggregates about Sa O0'
 The purchasers of the bonds were
 represented by A. C. Hanson of Chi cago. who spent Saturday, Sunday and Monday here making a survey of the city and wiring reports to his } firm. MT Hanson said his company ! b