The day book. [volume] (Norfolk, Va.) 1857-1867, 1866-09-28
Plan for the Reduction of the City
Debt


Doctor Fitzgibbon has recently presented a
'Scheme" for the consideration of the Coun-
ellis which has in view: lst, great reduction
OF the city debt and taxes and 81, the estab-
lishment of Water Works on large scale.
A large edition of his speech in advocacy of
these desirable measures has been printed );
and, assuming that it has been read by those
who feel an interest in the important subjects
he discusses we shall offer one Or two refec-
tons upon the plan which he has submitted
DR. Fitzgibbon estimates the amount of the
public debt at 81 ,667 900; the interest thereon
accrued and unpaid, 100000; and annual
interest at 100000. He sums up the assets
of the city as follows: Stock in N. s P. Rail-
road, $500,O00; preferred bonds of same,
$4,000; stock in R. & G. Railroad, $4,000;
in R, V. Railroad, ,OO0-mainly nominal
values-equal to $675,OOO.
In addition to this he exhibits the follow
ing property; the Tobacco warehouse, $780,
600; Town Point lots, $4,000. These, to-
gether with other property not specifically
named he estimates at an available or market
value of 100000 After stating the assets
OF the city as above, he proposes to extingush
100000 of city bonds by a sale Of the Ware
house, Town Point lots, and some other lots
and property of minor value" which would
operate reduction of $4,000 per annum on
the accruing interest on the city debt.
Then, by the sale of the preferred bonds
and "sundry other assets" the reduction could
be carried on by extingushing 800, 900 more
of city bonds operating reduction of $l2, 900
per annum in the shape of abatement of in
terest
He suggests an exchange of N. & p.
Railroad stock for city bonds The induce
ment to the exchange is, ga bondholder should
be allowed to exchange neither more nor less
than one third of his bonds, and should, for
the two thirds, receive coupon bonds of like
amount-the coupons of the bonds receivable
in payment of taxes and licenses and any
other debt due the city" -
This exchange, added to the sale of real
property would, it is estimated, operate a
further reduction of $4,000, equal in all to
1927 900 decrease of the annual interest We
believe that we have stated the Doctors
scheme fairly, thus far, and we now pause to
examine it,
First, as to the alienation of the city prop
erty. If Norfolk is ever to attain any COM
mercial importance-and the fact that three
Or
the establishment of European lines from this
port warrants this belief-then this water
property will be of great value; and nothing
but the absolute knowledge that it would at
once be appropriated to some purpose of great
public utility could warrant its sale, in our
Judgment, until the question now on trial is
decided. The city ought to be able to hold
this property, at least until some new devel-
opments are made; but of this we presume
there will be very little difference of opinion
We look upon any alienation Of the citys
stock in the n & P r. r. Co with alarm,
for if it once passed into the hands of the b.
&. o. Co., our views of communication with
the West, and direct trade, would stand but
slim chance of ultimate realization; and we
feel warranted in the belief, that the enor-
mously rich corporation of which We speak
would gladly buy the stock if it once found
its way into market. ua"foi
And just now is an inauspicious moment
to think of disposng of this property We
are informed that when the cotton comes this
way to market-l0O, 900 bales being the esti-
mate ofthe quantity to come over this road
ats business will be increased 80 per cent over
shat done in the corresponding time in 1860,
50 that upon this reasonable calculation,
we find that the burden IRON this road