, 1935-09-26

six months for this work, at 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 on the new issue ranges from
2 to 81 per cent. County officials
estimated total savings 70 county
taxpayers under the arrangement
at 81, 987, 46l, or about $500 $50 more
than under q previous contract
signed In 1894 but which was not
carried out. NO savings viii be MADE
nor reductions given on prlncipa:
Indebtedness, the entire reduction
accruing from decreased interess
rates.
Settlement OF an old suit In con-
nection with affairs Of Road Dis
trict No. I was also included as q
part Of the agreement. Hidalgo
county had brought suit against
Brown-Crummer company OF Wich-
tia, Kan, for about s165. 900. the
litigation resulting from original
sale OF the districts 100000 bond
issue q number Of years ago. Brown
drummer agreed TO pay the countys
attorneys their fees and dismiss a
cross-action brought by them II the
county agreed to dismiss the orig
inal suit. Brown-Crummer Is TO as
sist in securing participation OF
bondholders with whom they have
contacts, and II the required s. per
cent OF the bonds is not In control
Of the agency within six months
then Brown drummer win surrend-
er $4,000 in interest coupons to the
agency.
The delinquent tax agency viii be
used as a medium to pay off past
due interest coupons. totaling about
S64i, 900. The county will redeem
the coupons at about 40 cents or
the dollar, or approximately $685.
900. Funds now on deposit In road
district interest and sinking funds.
about S255, 900, will be turned over
70 the agency as a payment on the
coupons. The differences between
the cost of the coupons 70 the c0un-
" and the amount Of the sinking
funds will be raised by sale Of tx
certificates, beginning at the rata
OF 30 cents on the dollar. Persons
purchasing the certificates may use
them at 100 cents on the dollar IN
payment OF delinquent taxes.
A. A. Hughes Of McAllen 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 o. the
eight road districts pending out
come OF litigation instituted against
each district in federal court at
Brownsville several months ago. At
torneys for the county were en-
powered to handle these cases and
finish them.
Two companion contracts were al
30 signed by the commissioners
court and the American interests
to settle disagreements Of long stand
ing.
The county recognized q claim Of
the American-Rio Grande Land az
Irrigation company for payment for
easements covering the site OF the
gigantic flood control system In east
ern Hidalgo county. Issued in pay
ment for the easements were SIS. 900
In County Of Hidalgo Permanent
Improvement Warrants. Series 1885,
The county also purchased the two
story office building from the Amer
ican-State Bank a. Trust company
Ia Edinburg, issuing $4,000 In
County OF Hidalgo Courthouse An
mex Warrants. Series 1885"
In settling the courts demands for
additional security on the county's
present deposits OF $4,000 In the
bank. the American interests hypo-
thecated both warrant issues, total
ing s151, 900, with County Judge John
w. Ewing.
Both county Clerk Jack stone
and Mrs. Marvin McASkill, county
treasurer. have refused to sign the
warrants on the grounds that the
arrangement is mot q coed deal"
Despite the absence Of their sigma
lures. which has precipitated 3 rath-
err wide discussion concerning legal
ity Of the warrants under the cir
cumstances. they were used In the
negotiations as originally intended.
Under the contract. the county
has the right to sell the warrants
after September /. 1886. III the bank
has net satisfactorily performed IN
accordance with the agreement.
The agreements concerning the
settlement between the county and
the American interests were pass
ed on the vote or Commissioner Joe
Atkinson. w. III. Douglas and Tom
Hester. Voting against the agree
ment vas Commissioner Carl Eek
strom. while County Judge John
Ewing registered his opposition 10
the move. Both Ewing and EckStrom
refused 10 sign the papers In the
deal