Evening star., 1950-05-24
Bond Issue Sold
ByMontgoInery
Allow Interest
Cost of S1,429, 900
Is 2.217%, Smallest
Rate in Six Years

The Montgomery County Coun-
Gil yesterday sold a 81 ,429, 900 bond
issue at an interest rate of 2.217
per cent-the lowest in six years.
At the same time the group
cleared the way for work to begin
on the widening of Georgia ave-
nue. from Colesville road to Glen
mont by agreeing to pay the State
Roads Commission $406, ,929 as the
county's share of the $2,696, 900
total cost.
The council also voted to pay
half the estimated 100000 need
ed to acquire additional rights of
way along the 4-mile stretch.
The $1.4 million bond issue, in
cluding $435,O00 for school con-
struction. s794,O00 for roads, and
100000 for public parking lots
in the Silver Spring business dis
trict. was sold to Halsey, Stuart
& Co., New York, lowest of seven
bidders.
'48 Interest Was Higher.
An additional $4,000 worth of
certificates of Indebtedness to be
paid off by front-foot benefit as
sessmentS were sold to the Farm
ers' Bank & Trust Co., Rockville,
for an interest rate of ~ per
cent. This also was the lowest
Of seven bids.
The last bonds sold by the
county, in 1948. bore an interest
rate of 2.99 per cent.
Townsend Wainwright, Of the
New York firm of Wainwright,
Ramsey & Lancaster, municipal
finance consultants, said that if
yesterdays bonds had been sold
at the 1948 rate. it would cost the
county an additional $150,OOO in
interest.
AS it is, the county's total in
terest cost for the S1.4 million
bond issue will be S427,999, ac-
cording to Finance Director Alex
ander K. Hancock.
Although the county charter
sets ceiling on bonds at 10 per
cent OF the county's assessable
base, Mr.. Hancock said the coun-
Gil would have to issue an addi-
tional $l4 million in bonds before
1t reaches the 10 per cent maxi
mum.
Credit Rating Up.
Council President Frederic P
Lee said yesterdays low interest
rate means the county's credit
rating has risen sharply in recent
months.
This" he said, "was attribut-
able partly to the practice of for
mer county officials of reborrow-
ing to pay off bonds when they
came due and partly to ignorance
OF the soundness and true f1na1-
clal status of the people of Mont
gomrey County"
In its resolution on the Georgia
avenue project, the council said
the Washington Suburban SAM
tary Commission has promised TO
bear the $283,0O0 cost of storm
water drainage facilities outside
the State Roads Commissions
right -of-way.
the State Roads Commission
said it plans to build four 12-foot
traffic lanes separated by a 1O-foot
raised strip; a 9-foot parking lane,
5-foot concrete sidewalk and
curb and gutter on each side of
the road.
Two Petitions Denied.
County Manager Irving G.. Nc
Nayr recommended to the coun-
Gil that it pay the full cost of the
curb and gutter and that half
the cost of the sidewalks be paid
by abutting property owners.
In other business the council
denied the following rezoning
petitions:
Anthony Campitelli, Nathan
Brisker and Samuel Brisker re-
sidential A to commercial D of
IL lots on the east side of Georgia
avenue in the Forest Estates sub
division. Silver Spring.
Frank Long. Harry DAILY and
John h. Reeves, residential q Tn
commercial D of property at
Georgia avenue and Cameron
street. Silver Spring. In reject
ing this application the council
rescinded the action of the former
county commissioners, who had
approved it in December. 1e48
The council also authorized the
transfer of a 17-acre tract along
Massachusetts, avenue extended to
the Maryland National Capital
Park and Planning Commission
for park purposes.