, 1935-09-26
REFUNDLNC IS
GIVEN OKEH


was ann0nnced wednesday by the
Hidalso County Commissioners
court for compilation OF n proposed
refinancing arrangement to refund
about ss.0o0.O0O In outstanding
bonds Of eight county road districts
establishment Of . county delin-
quent tax agency, and settlement
OF differences between the county
the American state Bank Az Trust
Co. county depository bank, and
the American-Rio drsnde Land "
Irrigation company of Mercedes
County officials said they receiv-
ed copies OF the refinanclna con-
tract from members Of the Hidalgn
County Texas RefundinB agency.
which proposes 90 handle the road
district r~efinanctng. Signatures OF
all agency members, except Fred II.
Florence Of Dallas. had been at
fixed 70 the contracts and the COM
m~issloners' court had previously
approved the contracts.
Agency officials expect shortly 70
begin their efforts to obtain 65 per
cent OF the total outstanding bondS
preparatory TO actual exchange or
the present securities for the re-
funding issue. The procedure must
be validated BY federal district
court at Brownsville. II b allowed
SIX months for this work, nc the
end OF which time. the county has
the right II desired. 70 cancel the
proposal.
Under the refinancing arrange
ment, first principal maturity date
On the new bonds has been delayed
until April !, l947, and interest
rates 81 the new issue ranges from
2 To 5:s per cent. County officials
estimated total savings 70 county
taxpayers under the arrangement
at Sl,087,4el or about e602, $50 more
than under a previous contract
signed In 1884 but which was not
carried out. NO savings viii be mace
nor reductions given on prlncipa:
Indebtedness the entire reduction
accruins from decreased interess
rates.
settlement or an old suit IN con
necticn with affairs of Road DIS
trict No. ] was also included aS a
part OF the agreement. Hidalgo
county had brought suit against
BroWn-Crummer company OF Wlch-
ita. Kan, for about sl6S.000, the
litigation resulting 1rom original
sale OF the districts 100000 bond
issue q number u years ago. Brown
drummer agreed 70 pay the countys
attorneys their fees ane dismiss q
cross-action brought by them n the
county agreed to dAzniss the orig
inal suit. Brown drummer Ia 10 ~
sist In securing participation CO
hondh0lders with whom they have
contacts. and II the required Cd per
cent OF the bonds is not In control
OF the agency within six months.
then Brown drummer win surrend-
er s25.O00 In interest coupons To the
agency.
The delinquent tax agency win be
used as q medium 10 pay off past
due interest coupons totalinG about
S64l.000. The county win redeem
the coupons az about 40 cents or
the dollar. or approximately $685.
900. Funds now On deposit In road
district interest ard sinking FUNDS.
about s255,001, viii be turned over
70 the agency Is q payment on thg
coupons. The differences between
the cost of the coupons TO the coun-
ty and the amount OF the sinking
funds will be raised by sale OF tx
/ certificates, beginning ak the rata
OF 30 cents on the dollar. Persons
purchasing the certificates may use
them 1t 100 cents On the dollar u
payment Of delinquent taxes.
a. A. Hughes Of McAllcr and q.
X. Watson of Mercedes were nam
ed representatives of the county on
the agency beard.
Authority was given the County
treasurer TO impound funds OF the
eight road districts pending out
come Of litigation instituted against
each dis let In FEDERAL court af
Brownsville several months ago. At
torneys for the county were en-
powered 70 handle these eases and
finish them.
Two companion contracts were a.
so signed by the commissioners
court and the American interests
to settle disasreements OF long stand
ing.
The county recognized q claim Of
the American-Rio Grande Land A
Irrigation company for payment foI
easements covering the site OF the
gigantic flood control system In east
ern Hidalgo county. Issued In pay
uaent for the easements were $4,000
Ia County OF Hidalgo Permanent
Improvement Warrants. Series 1888
The county also purchased the two
story office building from the Amer
ican-State Bank a. Trust company
In E~dinburg. issuing $4,000 In
County OF Hidalgc Courthouse An
mex Warrants. Series 1855"
IN settling the courts demands foE
additional security On the countys
present deposits OF $4,000 In The
bank. the American interests hypc-
thecated both warrant issues, total.
ing sl5l.o00. with County Judge John
w. Ewing.
Both county Clerk Jack stone
and Mrs Marvin McAsksu, county
treasurer. have refused 20 sign the
warrants on the grounds that tbs
arrangement Is mot q gccd deal
Despite the absence OF their sigma
lures. which has precipitated q rath-
e. wide discussion concerning legal
ity or the warrants under the cir
cumstances. they were used In tho
negotiaticns as originally intended
Under the contract. the county
has the right 70 sell the warrants
after September I. 1885. II the bark
has net satisfactorily performed III
accordance with the agreement