Mexico weekly ledger., 1888-11-01

- - |
a number of outstanding matters
unsettled between the parties to the
proposition. What will follow
from the adoption Of such an UNI
certain scheme is too easily seen
for any one to go to the trouble to
point out"
j. j. GILL ON THE QUESTION.
Mr.. John j. Gill told u LEDGER
reporter this morning that the sub
iect of sinking funds was by no
means exhausted in his former
talks.
ain cities, sinking funds are Of
ten overlooked until they are dimin-
ished," said Mr.. Gill. "Some-
times they get irretrievably mixed
up with current funds and are thus
unintentionally expended. Dr.
dinarily, when kept in tact, they
are deposited in or loaned to banks
to let out at a higher rate of inter
est. Mexico has not been more
fortunate in the management OF
sinking funds than other places.
The following appeared IN an m
telligencer of late date
"'City Attorney Bryan and Mr..
Arnold were instructed to obtain Il
quit claim deed from +. Depping,
for so acres of land on which he
has borrowed from the city 1000,
and also that they obtain deeds
from the heirs of Moffatt, who
claim the land, and pay for the
same not more that $500
''This relates to Il part of the
water rental sinking fund in regard
to which there has been n compro-
mise. Under any aspect of the
matter a sinking fund running
through twenty years and reach
ing the sum of $45 900 is too great
a trust to be managed by future
City Councils, and l do not favor a
tax for that purpose. There is con-
tention enough among banks about
collectors and treasurers without
an additional apple of discord."
Here Mr.. Gill rested and the re-
porter inquired if he knew any
thing about the value of these
Water-works bonds.
"Not much that is reliable"
answered Mr.. Gill. "Their actual
value depends greatly upon the
vete about to be taken and the city's
subsequent action, but | a point
out how the bondholders have
heretofore estimated them. This
can be arrived at from their offers
to the city and the general public.
They have offered to reduce the
rental to S $1,000. Estimating that
the company's receipts from citi-
zens and the railways will cover ex-
penses. the cash value of such a
water rental can be easily ascer-
tanned by deducting an ordinary
bank discount of six per cent. from
each payment, and any one making
such a calculation will find that
about s26, 900 is the cash value of
the bonds at a rental of $1,000 per
annum.'
To confirm this estimate, Mr..
Gill added that he had been in
formed that''these bonds have been
hawked over the country for forty
cents on the dollar or S24 600"
Continuing, Mr.. Gill said CAS-
Stunning that the city had $4,000 a
year to pay, some light might be
thrown on the actual cash cost of
such an arrangement by instituting
an inquiry for what amount paid
down, a reliable trust company
would undertake to pay $4,000 an
nually for the required term. 1t is
also very easy to calculate that
$4,000 invested at six per cent. at
the present time will produce what
is necessary to meet an annual pay
ment of $1,000 for sixteen years.
These sums of S27, 900 and $4,000
therefore give the outside interests
Of the bondholders and the city at
the estimated rental of So 200, but
it would be preposterous to talk Of
the city paying such a rental. When
the contract was made voters ex.
pected such a supply of whole.
some water as was guaranteed
they thought such a supply would
enhance the value of their real
estate; but being disappointed
they rlghttuily claim that the renta
be withheld from the contractors
and their assignees and applied te
such improvement of value us they
aimed at in contracting for water
works. That both citizens ano
bond purchasers have been disap'
pointed is not the fault of the city
and the contractors ought to make
good their guarantee, not only by
FORGETTING their contract, but by
being also mulcted in heavy
damages for their treatment of thu
city and their representatives, tht
latter ofwhom are likely to be mos
injured because they are withou.
visible means of protection. Fo:
the contractors themselves, if they
yet have as large an interest il
these bonds as is supposed, LITTLE
sympathy need be felt"
what amount do you conside
a fair water rental?"
"From $500 to $500 in addition