The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-06-13
Funding the City Debt.

of the city, whether legal or not, on long
bonds, and the ring has had prepared,
and offered, at the council meeting last
evening, ans ordinance for that purpose,
and Aid, Atkinson moved its passage,
The vote was against and for--and
was strict party vote, all the Democrats
voting against the ordinance and all the
Republicans for it, MIR, Buffers organ is
in rage at this action of the majority, and
takes occasion to insult the democratic
aldermen, in the following style, from its
columns this morning
1t has been the policy of Mayor Buler,ever since
he was inaugurated, 10 put the hoaing dept OF the
draw q lower rate Of interest and cease to be a
source of constant annoyance and expense. An
ordinance TO fund this debt reported at the |
| last regular meeting, and the council adjourned
unto last evening for its special consideration.
| One would think, in q matter OF so much impor |
| lance that all the alderman would take care to
post themselves in the interval, but such not
the Aldermen DAILY. Lundy, Mosefeder,
WolenhaLpt, and Yates voted to lay the matter
over until the next regular meeting because their
gigantic intellects had been unable to grasp very
simple proposition, and they wanted more tine to
assure themselves that the city had right to do an
act which is clearly provided for in its charter
They were afraid that the debt exceeded the con-
etitutlOnal limitation ana that the funding might
makes droubles." They could not realize that
it not proposed to increase the debt but put
it IN decent shape and lower the rate of interest
so that about 5000 year might be saved, Let US
hope that they will get it sfted through their
wool by the July meeting.
| The Union may, perhaps, find that "the
gigantic intellects" of the Democratic
aldermen understand this question rather
better than their sapient critic, The
ordinance provides for the issuance Of
$4,000 bonds, payable, $4,000 in
twelve years, and $4,000 every fifth
year thereafter, until paid the same to
bear interest at per cent per annum, pay
able semi-annually at the First National
Bank in the City of New York, The form
Of the bonds is specified; interest coupons
are provided for and their form specified,
1t also provides that an annual tax be lev
led upon the taxable property in the cor
porate limits of the city. for the payment
of the interest, and the principal as it falls
, due, There are other minor provisions.
The Democratic aldermen called atten-
ton to a recent state law in reference to
cities desiring to replace old bonds by new
ones which provides that the new bonds shall
not run longer than twenty years Whereas
c the last $2S,O00 of Butler proposed bonds
would run q years., aud which further
5 provides that the question shall be sub
l mitted to vote of the people.
; City Attorney Gest was sent for. and he
: said he didn't know about this new law
5 but he gave it as his opinion that it die
. not touch our case. He said that the only
: question was as to whether our indebted
f ness was not beyond the constitutional
limit, and if so whether we could issue
bonds beyond that limit
= Because City Atty. Gest had neve
heard of the law is no evidence that tn,
e law does not exist, or that the Democratic
s aldermen were not posted in regard to it
i The law was passed by our last Legislature
G and was approved April IA, 1875, and Cal
d be found on page 6S Of the session laws
d We extract from it such of the phraseolog
Y as is directly applicable to our case, &c.
he u EHuCteu uC., IHaJ III ull cases Wueu III
IL CITY has issued evidences OF Indebtedness for mone
d or for any other purpose which are now binding
- subsistng legal obligations, and which proI
erly authorized by law, the proper authorities
such city may, upon the surrender thereof, issu
in place or in lien thereof, new bonds or evidence
of indebtedness, upon time not exceeding 20 year
and at a rate of interest not exceeding 10 per cen
Provided That the issue of such new bonds shall fir
er be authorized by n vote of majority Of the leg
voters of such city, at some annual or special Gle
10 ton. And PrOUided Further, That such evdenc,
OF Indebtedness shall not be issued so as to increa
the aggregate Indebtedness of such municipal CO
il poration beyond per centUm of the value of Il
~ taxable property theren-to be ascertained by Il
last assessment for state and county taxes