Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1883-02-28

lUNEY IU61
AL10oHA N HINAHCIAi DIsERkss.
Illegal Bosds. Unpasd 1.sscss4 asa 1iesse
% show Ser Monsy spsst-A fasssoa-
ate Asn's Crime.
A remarkable story Of financial mis-
management and municipal insolvency is
told in . special dispatch to tho 1Snes
from Altoona. It is almost impossible to
get an Altoona city order cashed, and
there is strong belief among prominent
business men that over 800, 900 Of tho
city improvement loan has been improperly
and illegally issued. The whole loan
amounted to $3.50, 900. OF this amount
$50, 900 has been expended in sewers and
other city improvements. BY act OF April
10, 1878, the city was authorized to b0r-
row from tim1 TO time sum OF money
not exceeding $780, in amounts not
exceeding $50, 900 annually, to be applied
to sewers and other permanent improve
ments, and to issue bonds therefor,
redeemable at the pleasure Of tho
city after 10 years and payable in 80
years from date, bearing z per cent: inter
est payable semi-annually. Under this act
authority is also given to the city to levy
a special tax not exceeding four mills on
the dollar, to be set apart as a special
fund to be applied to the payment of in.
terest on the bonds and to the purchase
or payment of not less than 3 per cent. of
the outstanding principal; after the LIST
day of May, an amount equal to the inter-
est on all bonds belonging to the fund
to be applied to the purchase or payment
of the loan. The interest upon these
bonds is payable on the 1st of July and
January, and is $40, 500 per year. Last
July the city failed to meet the interest On
them and suit was brought by E. D.
Haines & Co., the National bank of Chester
county, and the First National bank of
Chester county. Judgment was obtained
and maudamuses were issued against the
city treasurer. About 81, 700 has been
paid on these mandamuses. Interest for
January has also been allowed
to 60 by default, and suits have been
begun, to be heard at the April term of
court. by all the foregoing creditors. 1t
is estimated that there is SO, 900 now due
for interests and the costs of suits.
The bonds are principally held in Ches
ter county. The act under which they
were issued provided that there should not
be more than $50, 900 borrowed and ex-
pended each year, yet the first year about
$11O. 900 of bonds were issued. The money
received was spent in some way but no one
has yet been able to ascertain anything
about the matter. When it was known
that the money had been expended coun-
ellis made an effort to find out to whom
the excess of bonds was issued
but failed. An investigation was
ordered, but as councils had not
the power to compel the attend
ance of witnesses nothing was done. The
whole loan was expended ard illegally
issued in less than two years. It now il
thought that fight will be made on the
payment of all except the first $50, 600 ol
the loan. The issue of the whole lOar
forces upon tho city the payment of a
larger rate Of interest than the annual
taxation on the city improvement fund
is prepared to meet. The assessed vaiua
tion Of all taxable property in AL
toona is about 81 600, 900. A tax of 4
mills on this would be about SO, 600. All
of this amount is not collected. Three pei
cent. interest on the bonds that the city
will redeem after May 1 will be about
| "a, 500. It will be seen that the improve
ment tax to pay interest falls behind at the
rate of more than 50, 500 a year. As the
per cent. interest on the redeemable bonds
will be paid out Of the tax collected on
the mills rate of the total valua
tion, the city of Altoona, after May
1 will have $1O,500 to raise, as
we'll as $4500 to redeem in bonds. All
! this must come out of the permanent i'm
provement tax, which amounts to only
So, GOO annually. Notwithstanding the
fact that so much money has been ex.
pended on permanent Improvements,
Altoona has fewer permanent improve.
ments to-day than any city Of her size in
the state. There is not street or avenue
in the whole city that is paved, and only
two Of them are partly macademized. The
leading streets. have sewers, badly con
structed, and the citizens along the mosi
of them cannot drain into them. Every
other financial department of the city is
as badly demoralized as the permanent
improvement fund: except the water fund
which is self supporting.