The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1920-04-15
CARRIES HEAVY DEBT
Facts Briefly Covering the Financial
Condition of County From
1911 to Present Time.

1911 to Present lime.
Height of Folly to Buy Site and Build
Court House Under Prevail
ing Adverse Conditions.
On April 18th, 1911, the board of
county commissioners of Mile Laos
county duly passed a resolution au-
thorizing $4,000 loan from the state
of Minnesota. This loan was duly al
lowed by the state board of investment
under the provisions of Chapter 375,
Session Laws of 1911. The loan draws
interest at the rate of per cent per
annum, and the first bond of $4,000
came due July 1, 1916, and the last
bond of $4,000 will come due in 1880.
During the first five years of.the loan
no part of the principal was paid and
therefore the county paid to the state
in interest the sum of $500, this sum
being the interest for five years at 4
per cent-in other words, we had paid
back to the state in interest fifth
of the original amount, and still owed
the state $4,000. There is still an
unpaid balance of $4,000 on this loan,
which we will be paying off yearly now
until 1880 This loan was made at
that time for the following reasons
For years the county had been slowly
but surely running behind financially.
Board after board made desperate eff
forts to levy the limit and get this un-
paid balance wiped off the books. It
was useless. The limit levied for
county revenue, road and bridge and
county poor failed to cover the actual
running expenses of the county. The
valuation in those days was extremely
low, large parts of the county were
just getting a good start and needed
county aid in getting their roads
opened up and improved. The year
1911 found Mile Laos county about
$4,000 in debt and on this we were
paying interest at the rate of per
cent per annum. The greater part of
this sum was represented by outstand-
ing road and bridge warrants, the
balance being mainly outstanding
county revenue and county poor war
rants. In his 1910 report. the state
public examiner recommended that a
loan be made from the state at 4 per
cent and thus take advantage of a
saving of 2 per cent a year on 1884,
900, or $3.50. The board had a hard
time to get this loan through the state
authorities because about all the
states available money was already
applied for by school districts, and as
the fund was primarily a school fund
they were reluctant to let so large a
sum go on county loan. The loan was
finally put through, however, and the
money was used in paying up all out
standing warrants and the accumulat-
ed interest on them.
Again in January, 1912, the board
borrowed from the state S8,230.0O to
purchase and equip the Mile Laos
county home. Three thousand dollars
has been paid on this loan, and we will
have it all paid in 1924 Meanwhile
the unpaid balance draws annual in
terest at per cent, and we were lucky
to get it for this cheap rate, as good
substantial county bond issues offered
at par and 5 per cent interest are go
ing begging in the open bond market
to Az per cent and has not enough
money on hand to take care of school
districts clamoring for state loans.
Today the state board of investment
refuses to consider county loan of
any kind, and any proposed issue of
court house bonds of Mile Laos coun-
ty would have to take their uncertain
chances of desirable sale in the al
ready gluttcd bond market, where
rates on this class of securities have
already reached the 51s per cent mar
ket, and are rapidly approaching 6
per cent. In passing, we might re-
mark that even now Hennepin county's
paved road program for 1920 is pretty
much up in the air, due to it's inability
to sell the bonds, which are offered at
S per cent, backed by the entire re-
sources of one of the richest counties
in the United States, and where they
have a chance to make personal
appeal to the loyal-to-community
spirit Of some Of the biggest and best
bond concerns in the country. Bonds!
Bonds! And more Bonds! Like Ban
quo's ghost, they haunt us at every
turn of the road.
At the general election in 1916 this
county voted $4,000 bond issue for
road and bridge purposes, and by the
rarest good fortune succeeded in get