Bond Issues—Over What Period Should They Run?
Careful Analysis of Subject Seems to Show Thirty Years as Proper Term—Based on Remaining Useful Life of Improvement—Time, Too, Depends on Amount of the Issue
THE subject of this paper has been treated with thoughtfulness and painstaking care by Mr. Sherman and his conclusions are therefore all the more valuable. The subject of the proper duration and extent of water works bonds is a particularly timely one, as legislation has been proposed in sonic of the states, notably those of New England, on the question. Mr. Sherman’s treatment of the subject should be of great value to these legislators. The reasonable or proper term for which water works bonds may be issued has no relation to the laws of Massachusetts or of any other state; and, as I shall show, the laws of Massachusetts relating to the issuance of bonds for water works construction show very little, if any, consideration for the reasonable term of life of the property covered by the bonds.
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