The log cabin Democrat., 1920-09-03
1921 WATERWORKS
 TAX 10 BE WAIVED
DISTRICT IS PAID OUT
Taxpayers Also to Have Unique Ex. perience of Receiving Refund from
 Tax Already Paid.

cnarge all of It's bonded indebtedness a year and a half before its maturity, to waive entirely the collection of the final assessment of benefits next year and also to refund to taxpayers ap- 'proximately 15 per cent of the assess ment paid this year, Waterworks Inn provement District of Conway has achieved record unique in the an- nals of improvement districts in this state.
 Chairman Jo Frauenthal of the board of improvement made an an- nouncement to this effect today, ac- companying it with statement showing the remarkable fine financial condition of the district. In view of the fact that many improvement dis tricts in other sections of the state have been forced to ask extensions of the maturities of their obligations, the fact that the Conway wa.erworks board has written to it's fiscal agents, Farson & Company of Chicago, ask ing the privilege of paying of the last of its bonds one year prior to their maturity, will give this city an un- usual distinction As a matter of fact, however, of all the numerous improvement districts of Conway and Faulkner county, there has never been an instance of any default or delay in the payment of principal or interest upon their bonds at maturity.
 Waterworks District of Conway was organized in 1910, and issued $6S,0OO of serial bonds-the maximum amount permitted by the real estate assess ment at that time. The maturities of the bonds began January 1, 1912, and ended January 1, 1922, a total of II annual installments, with interest pay able semi-annually on July 1 and Jan uary 1.
 All of the bonds and interest cou- pons which have matured have been paid off. Chairman Frauenthal said that the present outstanding indebt- edness of the district is $7,S0O due January 1, 1921, and $6,20O due Jan uary l, 1922. The interest coupons attached to the bonds will total $792, making total of $14,792. Against this there is already on deposit to the credit of the district in Conway banks the sum of $16,4O1.24. Attorney George F. Hartje, who is collecting delinquent assessments, has on hand about $250, MT. Frauenthal said, and will probably collect several hundred dollars additional.
 Today he wrote to the Chicago bank ing concern through which the bonds are paid, advising that if the present owners of the bonds would consent and would waive the unearned interest on their bonds, the district would pay them off prior to their maturity.
 After all the bonds and interest are paid, there will be left on hand be- tween $2,000 and $3,000, the exact amount depending upon whether the bondholders will waive their interest and accept cash payment and also upon the balance yet to be collected from de- linquent taxpayers. In addition to this surplus, the district would be author ized to collect another assessment in 1921, which would aggregate about $12,000, and the suggestion has been offered that this collection be made and the money be turned over to the city to be used toward paying for re- pairs, extensions, etc., in the system, for which it is planned to organize a new improvement district. The attor- ney for the present board, however advises that there is doubt as to the legality of such a procedure, and it has practically been decided that as soon as the bonds are paid off and collection of delinquent taxes com pleted, the district, in addition to can ceiling the assessment for 1921, will refund the balance of money on hand to the taxpayers in proportion to the amounts paid by them in 1920.
 Besides relieving the property owners to this extent, this action, it is believed, will clear the way for the organization of Waterworks District Mo- 2, which has already been begun by the city council. The new dis trict is being formed for the purpose of installing settling basin, enlarg- ing the capacity of the machinery, which the rapid growth of the city has made too small, relaying defec- tive wooden water mains with iron and making extensions of service to various outlying sections of the city not now reached by the water sys- tenn.
 Chairman Frauenthal said the abili- | ty of the district to pay off its ob- | legations so far in advance of their maturity was due to the fact that
 Conway has doubled it's population since the district was formed, and the hundreds of new buildings erected ad- ded to the revenue of the district.
 WELL FRUITED STALK.