Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1885-04-22
AUDITORS OFFICE,


Alexandria, Va, May 81, 1854.
The Sinking Fund was created for siuk,
ing, or paying the public debt, by purchas.
ing the stock aud bonds issued by the city,
on " hch the interest is drawn by the com
| missioners and reinvested.
| When the old market (erected in 1871
was destroyed by fire on the 18th Of May,
! 1871, the finances of the city were III de-
pIorable condition, q result consequent upon
he war (1S61-5,) and the city WAS without
money and with no resources by which to
raise the means necessary TO erect new
building The problem was one of difficult
solution.
Among the assets of the city were 900
shares of the stock of the Orange and Alex
andria Railroad Company, the par value Of
which was 500 700. TO make this Invest
ment, which, it was believed would greatly
contribute to the business interests OF the
city, the people were paying an onerous
taxation. This stock never had paid any
thing and was Of doubtful value, and its
sale would have to be made at ruinous
loss, even if any one could be- induced to
buy. At the darkest hour in the clty's
affairs light seemed to break. The BaitI-
more and Ohio Railroad Company desired to
purchase controlling interest in the Orange
and Alexandria Railroad Co., and taking
advantage ofthrs opportunity the City Coun
ell by ordinance Of June 81, 1871, authorIZ-
ed the Com missioners Of the Sinking Fund
to dispose of the stock held by the city III
the Orange road, and invest the proceeds,
or so much as might be necessary, in the
erection of suitable building, not only for
the purposes of market, but for the accom-
mediation of the two branches Of Council.
the public offices, Mayors court and sta
ton house and the city courts.
The commission was composed OF we'll
known gentlemen, thoroughly alive to the
best interests of the city, and their selection
showed the sagacity of the Council.
| The sale of the stock produced fund OF
$40 $50, 16 from which together with the
$4,000 90 insurance on the old building, the
elegant and substantial building now occu-
plying the old site on the public square was
built, and which supplies all the require
ments of city hall.
The ordinance authorizing the sale of the
stock in the Orange road enacted that the
revenue derived from that part OF the build
ing set apart for market purposes should be
paid into the sinking fund, the same
to be invested in the bonds of the city
| Tor other securities if deemed more ad-
| vantageous). And when the amount
so invested reached the sum of $780,
| 10000 the original cost of the Orange
stock the commissioners were required to
make final report TO the City Council and
their functions were 10 cease. This result
was consummated within the short period
! of seven years, and TO that extent the pub
| tic debt was reduced, result which ought
to be gratifying to the people.
The terms Of the ordinance passed Janu-
ary 2, 1S49, authorizing the sale of bonds
| issued for the purchase of the Orange stock :,
having been complied with, IAN act to es
tablish a permanent sinking fund for the
| estinpuishment of the debt of the City of
| Alexandra" was amended by an ordinance
approved October 81, 1879, which provided
that the Commissioners of the Sinking Fund
"shalI have control over the renting OF the
stalls. stands and benches in the market
SQUARE, and of such rooms in the market
building not occupied by officers OF the city
Government, which shall be set apart by
resolution of the City Council" the revenue
derived therefrom to be invested in stock,
bonds or other indebtedness of this corpora
ton. Although this commission has only
been in force five years, they have from TINS
source alone purchased S45 Ssh 90 of stock
and bonds issued by the city, making a
total of Sl45, 7S6 G5 Of city Indebtedness pur'
| chased since 1917 nuCu SuC uoi n So oAioi"6
was completed.
The stock and bonds purchased by the
sinking fund are annually destroyed after
cancellation by the joint Committee on FL
nance of the City Council in the presence Of
The Commissioners of the Sinking Fund
and in lieu whereof certificates OF Ike
amount are issued by the Mayor and Audi
tor, on which interest is paid TO the com.
missioners the same as if the debt was held
by individuals. The operations Of some
sinking funds reduce so much of the debt as
NAV be "called in" or purchased on which
the interest ceases at once, but, in such
cases there are other resources with which te
meet the great volume of debt at maturity
not so in our case, this sinking fund, one
sole reliance, was created for sinking OF
having the public debt" as its issues ma
! ture, and to this end. there being no "othel
resources" to draw from, the interest mus
he collected and leinvested until the deb
is t;aa!ly liquidated; hence, very little, !
any, reduction in the taxation can be e&
prc,s,i on this account until the debt shall
be finally paid. There is now in the sink
ing fund S44 $50 SO. an accumulation OF nv
,ucr. F. /. BRoCKETT, Auditor.