FINANCING MAIN HIGHWAYS.

Shannon News, 20 October 1925, Page 2

FINANCING MAIN HIGHWAYS.

COUNTY RAISES LOCAL LOAN AT NOMINAL COST. The Horowlienua County Council has secured the money necessary for its plain and first year’s work on the Main Highways scheme on very favourable terms, which were disclosed at Saturday’s meeting. The County Treasurer (Mr F. M, Hudsun) reported as follows: “£12,000 Machinery and Plant Loan. —This loan which was floated locally bearing interest at s if per cent, and repayable in twelve years has been satisfactorily subscribed, largely by investors within the County. The total cost of raising the loan amounts to slightly under 8s per centum. “£IB,OOO Construction Loan.—For the first year’s requirements arrangements have been made for this loan witJi the Government Life Insurance Department. The loan is arranged on a. table mortgage basis which provides for the loan to be repaid by 73 halfyearly instalments of £6lO 11s 5d each, covering principal with interest at 6 per coni, per annum on the amount outstanding, so that the loan will be liquidated at the end of 36J years without the necessity for a separate sinking fund. The sum of £IO,OOO will be available on completion of formalities during November and the balance will he lifted prior lo the 31st March, 1926.” [ The chairman said the Council was I to be congratulated upon having raised the loan locally. The current-rate of interest was 6 per cent,, but the Council’s Joan bad been raised at 5$ per cent. The total cost, of advertising, printing of debentures and solicitors costs was 8s per cent. (€42), whereas if the loan had been raised Ihrough brokers the cost would have been more like £l2O. Mr .Hudson, the County Treasurer, deserved every commendation upon the way in which he had handled the loan. The work had been entirely new to him and his efforts had resulted in complete success, which: must be very gratifying tq him. " ' * The report was- - adopted.