The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1937-09-02
BOND LETTER

BOND LETTER
The following is copy of let
ter written by w. B. Austin and
Ira T. Johnston, County Attorneys
for Ashe County, setting forth their
plan for refunding the bonded in
debtedness of the county:
IRA T. JOHNSTON
Attorney at Law,
Jefferson, North Carolina
July %, 1887
Hon. Chas. M. Johnson,
State Treasurer
Raleigh, N. c.
Dear Sir:
Since our meeting in your office
with representative of holders of
Ashe county bonds, we have been
giving the matter very serious
thought and we have been talking
with as many as possible of the
substantial tax payers of Ashe
county. We are keeping in mind
the obvious fact that unless intelli-
gent public sentiment in the county
approves any settlement that we
might make that we cannot afford
to make it. l think we have con-
WINGED all parties concerned of our
sincerity of purpose and our earn
est desire to work out fair settle
ment and adjustment of the bonded
indebtedness of Ashe county
Mr.. w. o. Nisbett, Jr., represent
ing the Interstate Securities Corpo-
ration, Charlotte, North Carolina,
submitted suggested plan. Mr.. T.
j. Penn made suggestion of ba-
sis of settlement. You yourself
made some suggestions. We have
given all these proposals careful
consideration. We, therefore sug-
gest plan ourselves which differs
only in detail from the plans sug-
gested and in fact is combination
of various proposals made at the
meeting. The plan we propose is
as follows:
That the amount of the past due
interest coupons be divided in half
and that one half of said amount be
added to the principal amount of
the bonds, thus creating new prin-
cipal, that new bonds, term bonds
maturing in 1912, be issued for the
principal amount; that said new
bonds bear interest at the rate of
three per cent for ten years, three
and one-half per cent for ten years,
four per cent for ten years, and five
per cent for five years; that the
county not be required to levy more
than enough to pay the interest for
two or three years; that beginning
about 1910, that the county be re-
quired to make levy for payment
on the principal on a basis some
what as worked out in the plan sug-
gested by Mr.. Nisbett, so that there
would be gradual increase in the
amount to be levied over the per-
iod Of years until 1912, sufficient in
amount to retire the principal
amount of the debt, as well as to
keep the interest paid, by the year
1912. Of course, we appreciate the
fact that the bond holders are en-
titled to know the county could and
would meet the terms of such a set
Element as made. Chapter 124 of
the Public Laws of 1885 as well as
the Special Act applicable to Ashe
county passed at the last General
Assembly to take effect if and
when settlement and adjustment
of the bonded Indebtedness of Ashe
county shall be made in our opinion
is full and ample protection to the
bond holders as far as the law is
concerned. Our Board of Commits
sioners would also agree to put
every dollar of money collected
from back taxes which is not need
ed for actual necessary expenses
of the county into fund as an adj
ditional guarantee of good faith to
our creditors.
We will meet with a powerful op-
position within the county in getting
through a plan of this kind, but if