The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-07-30
$4,000 BONDS OF
CITY RETIRED july !
$4,000 INTEREST PAID ON s,o
900 WORTH OF RAILROAD
SECURITIES
Is INTERESTING HISTORY
WHEN BONDS WERE FIRST &c
SUED CITY AND TOWNSHIP
WERE ONE

After being in e.. Tor a period
OF 40 years upon which interest," am
ountlng to approximately $4,000 has
been paid the $4,000 bonds outstan-
ding against the City of Sank Centre
given as a bonus to bring the Little
rails and Dakota railway (now the
Northern Pacific) through the city.
have been retired
The history in connection with this
bond issue is very interesting one,
When they We're first issued in 1880
the total amount was about $4,000.
At that time the village and township
were one.
The records of the city show that
on June "a, 1881 the village council
granted charter to the company to
cross the streets. Sank Centre was
incorporated as village in 1876 and
as city in 1885.
There have been three bond issues
covering this As year paGipd. The
first was for Is years and the rate of
interest was six percent. The next
was for 10 years at five per cent. The
bonds We're purchased by the Bank
of Sank Centre, (now First State
Bank.) at par and a 500 premium.
The last issue was for 20 years.
Ten years ago during the incum-
bency of John McGibbon as Mayor,
a resolution setting aside $1,000 per
year in sinking fund to care for the
bonds when they fell due, as they
could only be paid at maturity. This
wise move sponsored by Mayor Nc
Gibbon has made it possible to retire
the bonds without an extension or adj
ditional tax levy at this time.
When Sank Centre incorporated as
city there was some dispute be-
tween the city and township as to the
proportion each should assume. A
friendly law suit was held and Sank
Ctnere's share was fixed at S10,400.
There were several joint meetings
of the town board and city council
to provide ways and means for hand
ling the debt. At meeting held June
10, 1898 c. M. Boss, chairman of
the board of supervisors presided.
Township Clerk Albert Hatch and
City Clerk j. F. Cooper were the
clerks of the meeting. Mr.. Ross
lived on the farm now owned by
Ralph Steffes. w. D. Townsend,
father of Mrs. C.. D. Marshal, was
mayor of Sank Centre.
At this meeting it developed that
the City of Sank Centre could not
issue bonds to care for its share of the
indebtedness and it was proposed that
the township issue the bonds and the
city would give them a moral bond
to pay It's share. The purpose Of
Hi, 10 hn HS
could not be extended at lower rate
of interest.
On June 9th, 1893 another joint
meeting was held but nothing definite
was accomplished as the city attorney
was not present. N. H. Miner was
acting as attorney for the township
in this matter.
At a meeting held July 9Th, 1898
the officers of Sank Centre township
refused to issue the bonds and assume
the burden of debt, even if lower
rate of interest could be secured.
July IS, 1894, the City filed an APP
peal bond signed by L. Kells and w.
D. Townsend on a judgment secured
against the city by Charles J. Runsey
in the sum of $4,000.
The bonds were refunded in 1905
on 20 year basis. They were sold
to U. M. Stoddard & Co., of Chicago
at am interest rate of a a per cent
and a premium of $4,000 was paid.
The first part of July, this year
City Treasurer Benz. F. Dubois paid
off $4,000 of the city's indebtedness
in the following amounts:
Railroad bonds $780, 900
Paving Improvement
No. bonds ........... $500
Paving improvement
No. 2 bonds ........... 1900
Storm sewer bonds ....... 500
Light and power bonds -. 5000
Total s22, 800
The various departments of the city
are conducted on a strict BUSH
ness basis and sinking fund is set
aside each year to care for outstand-
ing bonded Indebtedness as each is-
sue falls due. In the course of the
next ten years the city's Indebtedness
will be materially reduced which
should mean a corresponding de-
crease in the tax levy. -