02071938 (2)535,
HARNETT COUNTY,'NORTI. CAROLINA
BOARD OF COMMISSIONERS.
A regular meeting of the Board of Commissioners of Harnett County,
North Carolina, was held at the Court House in T•,1 ington, in the City of
Lillington, the usual place of meeting, on Monda ,e ,1938 at 10 :00 O'clock A.N.
Present: J.B.Ennis, Angus A.Cameron, L.R.Byrd, and Geo. Noel, and
John S.Barker.
Absent: None.
* * *
Commissioner Goe.Noel introduced the following resolution, which was read
and is as follows:
BE IT RESOLVED by the Board of Commissioners of Harnett County:
Section 1. The Chairman of the Board of Commissioners, with the approval
of the Local Government Commission, is hereby authorized and directed to
submit to the holders of the outstanding Road Bonds of the several townships
in the County the following proposal for refunding such outstanding bonds:
PROPOSAL FOR REFUNDING OUTSTANDING ROAD BONDS
OF THE SEVERAL TOWNSHIPS OF HARNETT COUNTY, NORTH CAROLINA
Dated January 1938
1. Under the provisions of an Act of the General Assembly of 1913 the
several townships of Harnett County were authorized to issue bonds for the
improvement of the roads of their respective townships. Under the provisions
of this Act, beginning with October l; 1914 and continuing through to July 1,
1921, one after another, each township in the County took advantage of this
Act, until all the townships had issued bonds in varying amounts, totaling
$430,000. Subsequently $3,000 bonds of Buekhorn Township were retired and
on July 1, 1931, when the control of all public roads in the State of North
Carolina was transferred to the State Highway Commission and all county,
township and district highway commissions were abolished, there were
outstanding a total of $427,000 of these township bonds of Harnett County,
all of which, except the bonds of Duke Township, were term bonds maturing at
various periods from 1934 to 1949 and bearing six per cent. interest.
2. Adequate provision for the payment of these bonds at maturity was not
provided and during the period of the financial depression and the inability
to collect and valorem taxes, nearly all of the townships went into default
in the payment of interest and several of the issues matured, leaving the
payment of the principal also in default.
3. The several townships, having no further control over the roads, were
left without any active boards of commissioners and general confusion with
respect to these bonds has been the result. In order to protide for a
liquidation of this indebtedness, the Board of County Commissioners of Harnett
County asked authority of the General Assembly of 1935 to issue county -wide
bonds with an unlimited authority for a county -wide levy, to be offered to
the holders of these townships bonds in exchange. The Act is Chapter 342 of the
Public -Local Laws of 1935.
4. The general scheme contemplated by this Act is that the county bonds
would bear four per cent. interest and mature serially over the period from
1937 to 1964.
5. Some of the township bonds are upon sparsely settled areas with
relatively low tax values. Some of the townships, while showing relatively
a present good tax value, are almost wholly dependent upon a.single enterprise
or upon the value of a single farm product. It is believed, therefore, that
the holders of these bonds will recognize the fact that a county -wide bond,
subject to an unlimited tax levy over the entire property of the county, is
a much safer- investment and entitled to a higher valuation than a bond resting
upon the resources of a single township. Also the political organization of
the County being permanent, it will naturally be more keenly interested in
prompt payment of its obligations and the maintenance of its credit. While
it is true that during the difficulties of the depression Harnett County was
for a short 'period in default in some of its interest obligations, the County
quickly recovered from this condition and has paid in full all of its past -
due obligations and is now maintaining its debt service in a current
condition. It seems, therefore, that if the bondholders are given these
county -wide bonds on a four per cent basis, in exchange on a par basis ftsr
the defaulted township six per cent. bonds, that this is eminently fair.
6. Upon the exchange of township bonds for county bonds, the township
bonds will be converted into registered bonds and held for the exclusive
benefit of the sinking fund of the refunding county bonds. The County
Commissioners are required to continue to levy in each township a sufficient
tax to pay six per cent. interest on the township bonds. It is contemplated
that this township levy will be adequate to pay the interest on the County
bonds and to retire the principal as it matures. However, the holders of
the new bonds will not be dependent upon the success of these township levies,
for their bonds will be a general county obligation supported by an unlimited
county -wide tax.
536
7. Of the total issue of county bonds of $427,000, $76,000 have been
withdrawn and -will be canceled, as a like amount of township bonds have been
bought in by the Sinking Fund, and the remaining $351,000 bonds of the new
issue have -been allocated for the purpose of exchange for the outstanding
township bonds in accordance with the schedule attached as Exhibit B. It
will be noted that the average maturity of the bonds allocated to each
township is indicated on this schedule; and each holder of township bonds
will receive in exchange for his bonds county bonds with an average maturity
corresponding as nearly as possible to that indicated on the schedule.
8. Holders of the bonds of each township are requested to sign and mail
the enclosed letter of assent to the refunding of their holdings. Exchanges
will be made as soon as assents have been received from the holders of a
sufficient amount of the township bonds to make it equitable to issue the new,
refunding bonds, and a determination to that effect has been made by
resolution of the Board of County Commissioners, with the approval of the
Local Government Commission.
9. The refunding bonds to be delivered to each depositor will be coupon
bonds -dated December 1, 1935, of the denomination of $500.00 each, bearing
interest at the rate of four per cent. per annum, payable semi- annually on
June 1, and December 1, and having annuall maturities on December I averaging,
as nearly as possible, the average maturity of all the_bonds_allocated to the
respective township shown in Exhibit B. Each bond is redeemable on either
of the last two interest :payment dates before maturity. Both principal-and
interest are payable in hew York City. Only these refunding bonds can be
issued pursuant to this plan, since their description was incorporated in
the brief filed in an action before the Supreme Court of North Carolina, which
determined the power of the County to so underwrite the bonded debt of the
various townships and upheld the validity of the refunding bonds. They will
be payable from an unlimited tax upon all- taxable property in the county
which the Board of County Commissioners is directed:by law to levy and cause
to be collected. The selection of the particular refunding bonds delivered
to each depositor must of necessity be discretionary with the Board of County
Commissioners. Exchange will be made as of December 1, 1935; accumulated
interest to that date at original rate, and matured coupons on new bonds at
4% will be paid in cash at time of exchange.
10. Correspondence with the holders of any of these bonds, who with
further information regarding the particularThonds held, is, invited and should
be addressed to the firth of Ross & Ross, Special Attorneys, Lillington, N.C.
11. The following schedules are appended hereto: -
A. A schedule of the outstanding township bonds with their maturities and
default record and sinking fund.
B. Schedule of-refunding bonds to be issued by the County and allocated
for exchange for the several township bonds.
C. A statement of the County's financial condition as of July 1, 1937.
12. The bonds will be accompanied by an approving legal opinion of the
firm of Masslich and Mitchell, New York, band attorneys. The legality of
this transaction has been approved -by the Supreme Court of North Carolina, in
the case of J.C.Thomson v. Board of Commissioners of Harnett County, reported
in 209 N.C., at page 662, and the same title reported in 212 N.C., at page 214.
Ross & Ross,
Special Attorneys,
Lillington, N.C.
BOARD OF COMMISSIONERS OF HARNETT COUNTY
by: J.B.Ennis, Chairman.
537
Township
EXHIBIT "A"
Outstanding Road Bonds and Sinking Funds
Harnett County, North Carolina, Townships
November 15, 1937
Date Held in Now out- Int.
oflssue Maturity Amount Sinking Fund standing paid to
Anderson Ck. 12 -1 -15 12 -1 -35 $15,000.
Averasboro
Barbecue
Black River
Buckhorn
Duke
Grove
$6,000.
3 -1 -20 3 -1 -40 50,000. 4,000.
11 -1 -14 11 -1 -34 10,000. 1,000.
10 -1 -15 10 -1 -35 25,000. 2,000.
7 -1 -21 7 -1 -41 27,000. 10,000.
11 -1 -19 $3,000. 30,000. 5,000.
annually
11 -1 -40/49
10 -1 -20 0,000. 30,000. 19,000.
annually
10 -1 -41/50
5 -1 -18 5 -1 -38 30,000.
10 -1 -19 10 -1 -49 50,000.
10 -1 -34 10,000.
11 -1 -40 40,000.
1 -1 -35 20,000.
1 -1 -40 15,000.
2 -1 -37 15,000.
1 -1 -36 15,000.
11 -1 -20 11 -1 -40 25,000.
20,000.
Hector's Crk. 10 -1 -14
Johnsonville 11 -1 -20
Lillington 1 -1 -15
1 -1 -20
Neills Crk. 2 -1 -17
Stewarts Crk. 1 -1 -16
Upper L.River 10 -1 -14 10 -1 -34
Deficit.
6,000.
5,000.
2,000.
2,000.
6,000.
3,000.
5,000.
427,000. 76,000.
Note: All bonds bear interest at 6% per annum.
Sinking
Fund Cash
$ 9,000. 12 -1 -34 $ 1,891.18*
46,000. 9 -1 -34 9,681.74
9,000. 11 -1 -34 2,255.56
23,000. 10 -1 -34 5,578.75
17,000. 7 -1 -34 2,262.32
25,000. current
11,000. current
30,000. 11 -1 -34
44,000. 5 -1 -34
5,000. 4 -1 -34
38.000. 11 -1 -34
18,000. 7 -1 -34
15,000. 7 -1 -34
9,000. 8 -1 -34
12,000. 1 -1 -33
20,000. 5 -1 -33
20.000. 5 -1 -34
351,000.
538.91
12,114.30
1,152.40
6,569.93
6,893.22
1,103.21*
1,396.01
5,057.19
50,505.94
538
EXHIBIT n.Brr,
ALLOCATION OF HARNETT COUNTY REFUNDING BONDS
Showing Average Maturity of Bonds-Allocated
Anderson Creek Averasbbro Barbecue
year Numbers Maturity Numbers Maturity Numbers Maturity
19p.8 18-21 $2,000. 22 $500.
1939 36 -39 2,000. 40 500.
1940 54-57 2,000. 58 500.
1941 74 -77 2,000. 78 500.
1942 94 -97 2,000. 98 .500.
1943 115 $500.
116 -119 2,000. 120. 500.
1944 136 500. 137 140 2,0009 500.
1945 159 500. 160 -163 2,000. 164 500,
1946 182 500. 183- 186" 2,000. 187 500.
1947 207 500. 208211 2,000. 212 500.
1948 232 500. 233 -236 2,000. 237 500.
1949 259 500. 260 -265 3,000. 266. 500.
1950 286 500. 287 -292 3,000. 293"- 500.
1951 315 500. 316 -321 3,000. 322 500.
1952 345 500. 346' -351 3,000. 352- 500.
1953 376 -377 14Q00, 378 -383 3,000. 384 500.
1954 408 -409 1,000. 410 -41,5 3,000. 416 500.
1955 441 -442 1,000. 443 -448 3,000. 449 500.
1956 476 -477 1,000. 478 -483 3,000.
1947
1958
1959
1960
1961
1962
1963
1964
Average
Maturity
$9,000.00
15.6 years
$46,000.00
13 years
$9,000.
11.5 years
53,3
Black River
Buckhorn
Duke
year Numbers Maturity Numbers Maturity Numbers Maturity
1938 23 -26 $2,000. 27 -28 $1,000. $
1939 41 -42 1,000. 43 -44 1,000. 45 500.
1940 59 -60 1,000. 61 -62 1,000 63 -64 1000.
1941 79 -80 1,000. 81 -82 1,000. 83 -84 1000.
1942 99 -100 1,000. 101 -102 1,000. 103 -105 1500.
1943 121 - 122 1,000. 123 -124 1,000.
1944 142 -143 1,000. 144 -145 1,000. 146 500.
1945 165 -166 1,000. 167 -168 1,000. 169 500.
1946 188 -189 1,000. 190 -191 1,000. 192 -193 1000.
1947 213 -214 1,000. 215 -216 1,000.
1948 238 -239 1,000. 240 -241 1,000. 242 -243 1000.
1949 267 -268 1,000. 269 -271 1,500.
1950 294 -295 1,000. 296 -298 1,500. 299 -300 1000.
1951 323 -325 1,500. 326 -328 1,500. 329 -330 1000.
1952 353 -355 1,500. 356 -358 1,500. 359 -361 1500.
1953 385 -387 1,500. 388 - 393 3000.
1954 417 -419 1,500. 420 -423 2000.
1955 450 -452 1,500. 453 -456 2000.
1956 484 -486 1,500. 487 -492 3000.
1957 512 -521 5000.
1958 550 -559 5000.
1959 589 -599 5500.
1960
1961
1962
1963
1964
Average
Maturity
$ 23,000.
12 years
$ 17,000.
10.6 years
$ 36,000.
18.5 years
540
Grove Hector's Creek Johnsonville Lillington
Num-
Year Numbers Maturity bars Maturity Numbers. Maturity Numbers Maturity
1936 29 -30 01,000. 31 $500. 32 -33 $1,000.
1939 46 =47 1,000. 48 $500. 49 500. 50 -51 1,000.
1940 65 -68 2,000. 69 % 500. 70 500. 71 -72 1,000.
1941 85 -88 2,000. 89 500. 90 500. 91 -92 1,000.
1942 106 -109 2,000. 110 500. 111 500. 112 -113 1,000.
1943 125 -128 2,000. 129 500. 130 500. 131 -132 1,000.
1944 147 -150 2,000. 151 500. 152 500. 153 -154 1,000.
1945 170 -173 2,000. 174 500. 175 500. 176 -177 1,000.
1946 194 -197 2,000. 198 500. 199 -200 1000. 201 -202 10000.
1947 217 -222 3,000. 223 500. 224 -225 1000. 226 -227 1,000.
1948 244 -249 3,000. 250 500. 251 -252 1000. 253 -254 1,000.
1949 272 -277 3,000. 278 -279 1000. 280 -281 1,000.
1950 301 -306 3,000. 307 -308 1000. 309 -310 1,000.
1951 331 -336 3,000. 337 -338 1000. 339 -340 1,000.
1952 362 -367 3,000. 368 -369, 1000. 370 -371 1,000.
1953 394 -399 3,000. 400 -401 1000.. 402- 403 1,000.
1954 424 -429 3,000. 430 -433 2000. 434 -435 1,000.
1955 457 -462 3,000. 463 -466 2000. 467 -468 1,000.
1956 493 -498 3,000. 499 -502 2000. 503 -504 1,000.
1957 522 -527 3,000. 528 -531 '2000. 532 -533 1,000.
1958 560 -565 3,000. 566 -569 2,000. 570 -571 1,000.
1959 600 -605 3,000. 606 -609 2,000. 610 -613 2,000.
1960 630 -635 3,000. 636 -639 2,000. 640 -643 2,000.
1961 672 -679 4,000. 680 -683 2,000. 684 -687 2,000.
1962 716 -723 4,000. 724 -729 3,000. 730 -733 2,000.
1963 760 -767 4,000. 768 -773 3,000. 774 -777 2,000.
1964 806 -813 4,000. 814 -821 4,000. 822 -825 2,000.
074,000.
Average
Maturity 18.2 years
050000. 038, 000. $33, 000.
8.5 years 20.6 years 18 years
541
Neill's Creek
Stewart's Creek Upper Little River
year Numbers Maturity Numbers Maturity Numbers Maturity
1938 $ $ 34 -35 $1,000.
1939 52 -53 1,000.
1940 73 500.
1941 93 500.
1942 144 500.
1943 133 -134 1,000. 135 500.
1944 155 500. 156 -157 1,000. 158 500.
1945 178 500. 179 -180 1,000. 181 500.
1946 203 500. 204 -205 1,000. 206 500.
1947 228 500. 229 -230 1,000. 231 500.
1948 255 500. 256 -257 1,000. 258 500.
1949 282 5u0. 283 -284 1,Ouu. 285 500.
1950 311 500. 312 -313 1,000. 314 500.
1951 341 500. 342 -343 1,000. 344 500.
1952 372 500. 373 -374 1,000. 375 500.
1953 404 500. 405 -406 1,000. 407 500.
1954 436 500. 437 -438 1,000. 439 -440 1,000.
1955 469 500. 470 -473 2,000. 474 -475 1,000.
1956 505 500. 506 -509 2,000. 510 -511 1,000.
1957 534 500. 535 -538 2,000. 539 -540 1,000.
1958 572 500. 573 -576 2,000. 577 -578 1,000.
1959 614 500. 615 -618 2,000. 619 -620 1,000.
1960 644 500. 645 -648 2,000. 649 -650 1,000.
1961 688 500. 689 -692 2,000. 693 -694 1,000.
1962 734 -737 2,000. 738 -739 1,000.
1963 778 -781 2,000. 782 -783 1,000.
1964 826 -829 2,000. 830 -831 1,000.
$9,000.
$32,000. $20,000.
Average
Maturity 17.5 years 20.4 years 17.6 years
542
EXHIBIT nC"
STATEMENT OF FINANCIAL INFORMATION of
HARNETT COUNTY, NORTH CAROLINA, as of June. 30, 1937
Population of Harnett County - 1930 census
Estimated present population
Assessed property valuation for taxation 1936
Assessed property valuation for taxation 1937 (estimated)
Estimated actual valuation
Tax rate: 1936 is $1.25 on the $100.00 of assessed property
valuation plus special township levies.
Tax levies: 1936 Amount levied
Collected to date
1935 Amount levied
Uncollected to date
1934 Amount levied
Uncollected to date
All other uncollected Land Sales
Outstanding Debt:
County Bonds 1,087,000.00
State Literary & Building Fund School Notes 205,800.00
Floating Indebtedness None
39,018
42,000
18,747,123.00
22,000,000.00
$37,500,000.00
285,692.42
221,637.45
279,355.46
23,596.45
264,357.83
19,492.19
167,800.71
1,292,.800.00
All District School Bonds have been assumed by the County. The County
Auditor is fiscal agent for $427,000.,00 Township Road Bonds that have not
beep assumed by the County. The County Commissioners levy and collect the
taxes for the various Township Road Bonds, but they are not a County
obligation.
The County has $125,000.00 in term bonds outstanding.
(30,000.00 of the above amount was paid July 1, 1937.)
Sinking Fund Investment
Sinking Fund Cash
$54,500.00
4,491.15
.The County is not in default in the payment of principal and interest on
its bonds.
The foregoing is a true statement according to the records of Harnett
County.
Dated July 5
J.S.MoLean,
Auditor Harnett County,.
1937. North Carolina.
543
1
Section 2. The approval of the Board is hereby given to all agreements
which may be entered into with the holders of the above described Township
Road Bonds pursuant to the provisions of the foregoing proposal.
Upon motion duly seconded, the foregoing resolution was adopted by the
following vote:
Ayes: Commissioners J.B.Ennis, Angus A.Cameron; L.R.Byrd, Geo.T.Noel and
John S.Barker.
NoesarNone.
The Board recessed to reconvene at the call of the Chairman.
/)a✓vau.a.�t,.; Clerk.
Chairman.
March 7, 1938
The Board of County Commissioners of Barnett County met in regular session
on Monday, March 7, 1938, with Chairman J.B.Ennis, and Commissioners L.R.Byrd,
Geo.T.Noel, J.S.Barker, Angus A.Cameron, and County Attorney R.C.Strickland
present.
It is ordered that valuation on the cutover timber land of R.L.Mangum in
Neill's Creek Township be placed at $20.00 per acre because of error in listing.
It is ordered that Mrs. L.P.Surles be released of taxes on lot on McKay
and Divine Street, in town of Dunn, N.C. for the year 1937. This lot was
purchased April 10, 1937 from the Presbyterian Church and non - taxable for
that year.
It is ordered that J.D.Mitchell, Coats, N.C. R -1, be relieved of taxes
1927 -1932 inclusive and cost on 17 acres in Neill's Creek Township upon
payment of $5.00 cash today and $25.00 on October 1, 1938.
It is ordered that tax valuation of property of Mrs. E mna Neighbors in
Averasboro Township for year 1937 re- valuation be changed as follows:
(1) 100 acres cleared land from $65.00 per acre to $60.00 per acre.
(2) 68 acres cleared land from $100.00 per acre to $80.00 per acre.
It is ordered that J.E.Patterson of Upper Little River Township be
relieved of poll tax for the year 1937 on account of loss of an eye.
It is ordered that County Auditor be authorized to accept partial payment
of $10.00 this date on W.B.Woodall's taxes in Black River Township for the
year 1930, and extend balance to Nov. 1, 1938 without penalties, it appearing
that taxes for that year were charged improperly to another name.
It is ordered that Cuthburt McDonald be and he is hereby appointed
Barbecue Township constable to serve at the pleasure of the Board of
Commissioners; and upon his giving bond and subscribing oath as requested by
law, he may enter upon the duties of said office.
It is ordered that property of Harvey Stewart in Township
which has been listed as 18 acres, be changed to 13 acres on account of error
in listing.
It is ordered that the lien of taxes against property listed to
A.G.Blanohard in Buckhorn Township, consisting of two lots, for the years
1931, 1932, 1933, 1934, 1935 and 1936 be released upon payment to Harnett
County of the sun of $110.00.
It is ordered that Darius Royals of Averasboro Township, be relieved of
poll tax for the year 1937 on account of being a cripple.
It is ordered that upon payment to the County of the sum of $1063.21,
the property listed to Mrs. Vara M.Thornton in Averaaboro Township, be relieved
of the lien of taxes for the years 1928 to and including taxes for the year
1937, which sum includes $10.70 aacrualeourt cost; and that upon such payment
the Auditor deliver to Mrs. Vara M.Thornton tax receipts and certificates for
said years and that the County Attorney enter judgment terminating the pending
litigation in respect of delinquent taxes.
•