Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-05
DECREASING A DEBT.
Next Year Will See a Big Reduc-
tion in City Expenses as
TIE RESULT OF MATURING BONDS.
some Interesting Points About Municipal
Finances and
1 LIST OF The BONDED INDEBTEDNESS

loerably relieved, and the city debt will b,
essened, by the maturing ne1t
April of the last of the fire
department. loan bonds and of larg,
'lock of water loan bonds, the two amounts
ggregating S425, 800, upon which interest
.ud sinking fund assessments have beer
evied for the past 20 years. While max.
ng up list of the city's Indebtedness yes
erday, Controller Morrow showed the effect
f the maturing of the fire department
,onds alone would have on city finances.
The bonds were issued for 5000, 600 in 1873
It the time the fire department was changed
rom a volunteer to paid organization, fol
he purpose of putting in the fire alarm tele
raph and increasing the equipment Or
he first dav of April next the bonds will
ave ma.ured. To meet them there is in
he sinking fund for that purpose the sun
$210, 265, of which S194. 600 are invested
n securities netting the city 8 per cent in
crest They are per cent bonds, 1t being
ecessary at the time they were issued tc
uarantee that rate on account Of the bad con-
ition of the city's finances, and they had a
per cent sinking fund, which required an
nnual appropriation of $4,000.
One Annual Appropriation Stopped.
Thus, by their maturing and payment an
nnual appropriation of S24, 200 will be
topped. AS the sinking fund already con-
aims more than is required to close up the
pan, no appropriation will be required for
next year.
The water loan bonds section of, which
nature at the same time. were issued for 25
ears beginning in 1868 The last of them
lere put out in 1873. When the Brilliant
jumping station and Highland reservoir
Tere projected these bonds were issued to
uiid, equip and extend the plant In
rder to meet the bonds as they matured 9
er cent sinking fund was provided, and in
rder to float them on the market a z per
ent interest guarantee was necessary.
,hese bonds are the only portion of the city
ebt that will mature during the next six
ears, excepting the fire loan mentioned
bove. The bonds fall due as follows: In
s93, S125, 500; in 1894, S242, 500; in 1895,
243. 200; 1896, 81, 1872 5O0 1897, $40, 500; 1898,
2,39S, 200. This will wipe out the water
1an, and no other city bonds will mature
tter 1898 until 1904.
wipfns Out the City Debt
Although only 2 per cent sinking fund
as provided for this loan, prior to 1880
veni portion of this small fund was taken
r municipal expenses, and at one time it
as nearly depleted. In 1881, however,
heh Controller Morrow assumed the office
His first term, he laid down his policy of
ip1ng out the city debt as quickly as pos
big /, and compelled the Finance Committee
al lbandon the irregular way of handling
le1various sinking funds that mad been in
oSue, and to prepare to meet the obliga-
offs of the municipality as they came due.
accordingly they began returning to the
q ter loan fund the money that had been
fverted into other channels, and by the in
'estment of the moneys in it in good securi-
les and compounding the interest it aggre-
ed at the close of the last fiscal year
t66, 541 80. OF this amount 81 ,466, 033 is
vested in securities, netting the city 8
er cent per annum.
Although large portion of the cfty's
onds are out at per cent interest the
rerage rate is only g. 5021 per cent A
eneral statement Of the bonded debt and
ate of interest shows s., ,0SS, 097 81 out at
per cent, s., 5O1, S03 80 at per cent, $780,
90 at 6 per cent and S., ,104, 500 at per
ent; total, S13. .2o4, 4o1 81.
When the Bonds Fan Due.
In addition to the fire and water loan
,onds already mentioned the other city
ronds mature as follows: Registered muni-
ipal consolidated 6 per cents, S210, 900,
nature in 1904. Water loan registered
yer cents, $500, 200, mature in 1908 I'm
'rovement 4 per cents, SS,734, 200,
nature in 1915. Railroad script
and per cents, $50, 1877, bonds due on
500, 900, mature in 1909. Refunded Fifth
Avenue Market House 5 per cents, SOS, 900;
efunded City Building 5 per cents, $780,
90; total, $195, 900, mature in 1910
unded debt per cents, S121, 600; funded
lebt improvement 5 per cents, $77, 900;
otal, $685. 600, mature in 1912.
In 1918 there will mature So, $50, 700 of
he city's Indebtedness, of which 81, ,4O3, 900
EilI be funded debt improvement bonds,
353, 300 railroad compromise per cents
nd s., S26, 400 railroad compromise 5 per
entS This completes the list of the city's
Indebtedness
Already a number of men prominent
n the city's financial conduct are discussing
he necessity of big issue of bonds to carry
onward street improvements, to build free
ridges to the Southside and to complete
he proposed purchases and establishment
fpublic parks.
Opposed to Issuing More Ponds.
The conservative element in city af-
airs, among whom might be mentioned
Controller Morrow and c. L. Magee, are
opposed to any further issue of bonds
lntii the present debt is practically wiped
,ut. They argue that a comparatively
mall annual millage will make all the i'm
Irovements necessary until such time that
he debt is reduced so that the payment of
interest thereon will be trife. After that
hey say there will be no necessity for
ponds, as the citY's taxable valuation will
ave so increased that even a smaller mill
.ge than tha: of 1892 will pay all running
expenses of the municipality and allow ample
cope for improvements. Besides, they
rgue, there is q possibility In the mean
ime of an emergency arising that will COM
Del an issue of bonds, and big one, and if
he debt is increased unnecessarily such a
ontiugency would plunge the city so
would be almost impossible
Making the City Free of Debt.
If the conservative element is able to
lold down, the debt will in % years be re-
iuced to comparatively nothing, as within
ions fall due. But, according to those ac-
luainted with the subject, there will be
iecessIty for very careful handling of mu-
iicipal finances in order to meet
he various loans as they ma
ure. Controller Morrow saws that
or a couple of years the water loan sinking
und will, as at present invested, yield
'ufficient, with the annual appropriations,
o meet the maturing bonds, but after that
will require sharp inanciering to keep it
Up. 1t is bis earnest desire to continue in
he Controllers Office four years longer,
rs in that time he feels satisfied
le can accomplish his life's work
nrovide beyond doubt for clearing off the
,ity's debt. He takes great satisfaction
,ut of the fact that when he first became
Controller this city's bonds were q drug on
he market, and that now those of no city