The times. [volume] (Richmond, Va.) 1890-1903, 1897-02-12
STATUS OF THESINKINC FUND


matter said Mayor Iayloi, - ''
have followed the course OF M preue-
ccssors for the past twenty years.
What has been the course OF you'
predecessors" asked Mr.. Noble.
Il have done as Mr.. Elyson al"aSs
did" replied the Mayor.
Under further questions the Mayor sand
that il appeared that the fund had not
boen properly managed in the past but
no proposed in the future TO follow the
law and take the advice Of the city At
torney.
Novor TAYLOR then went on 10 say that
n was only a few months ago that tho
Sinking Fund Commissioners had louhd
out that they were not working IN ac-
cordance with the law Ihey had oeeh
apriged Of the Tact, he said, by the Speclai
Accountant re-.
Tho Mayor was questioned as 70 facts
ana rgurcs. but did not attempt 10 give
any. saving that the chairman OF the
Finance Committee could do better IMAM
he could IN that line ...,,.-,
TIE AUDITOR TESTlFlES
Auditor T.. j. Warren was next exam
ined. lie said that he had always iol-
lowed the example set by ms
sor. IL had always, lie sald' u''" VIZ
custom TO turn over one hah OF o"e pt
cent. to be deposited TO the credlt Oh =
Sinking Fund. There was now ne s"iu.
about $4,000 available for Investment
or redemption. That amount was "0''-
ally available in cash
MT Warren went on TO state that lh''e
had been SIS 900 set aside for the purchase
of city bonds. but only small porlioh
had been expended on account Of the hlsh
price of Richmond bonds
For "a bankrupt town he said with
mild sarcasm. her bonds are dong
mighty well.
I'm reply TO questions by Colonel Jones
the Auditor said that there was no sep
aratc account kept for the Sinking fnhu.
but the various funds for each bona
issue were credited In a lump.
Mr.. Warren said that there had been
i'm the past accumulations in the Sinking
Fund from the one per cent. OF the deb'
placed there yearly.
Have any of the bonds ever been re-
deem, do" asked Mr.. Zimmerman.
yes. sir" replied the Auditor.
can you state from your own knowl-
edge asked Mr.. Noble. that the pro-
vision Of the charter setting aside J per
cent has always been strictly carried
out?'
81 can state positively that It has
replied Mr. Warren.
"Can you inform us concerning the
amount Of bonds that have been redeem
ed bv the per cent. set aside since tho
inception Of the sinking fund.- asked Mr..
Zimmerman.
Certainly | can. ] can have it ready
for the next meeting of the committee,
said the Auditor.
CLOSE QUESTIONING.
would there not be considerable
amount i'm the sinking fund in excess Of
what is now there if the practice OF set
ting aside one per cent. each year had
been carried out for thirty-four years.
asked Colonel Jones.
.'It would an be there if no bonds had
been redeemed answered Mr. Warren.
"If bonds mature they have to be re-
deemed. and when no bonds are TO be re-
deemed. the money is to be invested.
Admitting the construction OF the law
70 he "A proper one would that method
of procedure mean an increase or d.
minish of the city's debt?'' asked Colonel
Jones
The experience of all cities has been
that as "A city increased In population its
debt increased But its debt could not
increase unless new bonds were issued,
said Mr.. Warren.
Would IL be decreased?' asked Mr..
Zimmerman.
well. a sum NONlN Hf 'iNHA'N A'i 40
demption. said Mr.. Warren
Mr. Meredith stated at this 1uncture
that while ne did not think the sinking
fund was properly administered yet the
commissioners were not 10 blame. The
ordinance followed by the Board was I'm
conflict with the charter. and had peeh
drafted with person who ala not appie-
ciatc that the compromising OF interest
was the strong feature of a sinking fund.
This lay at the root OF the whole trouble.
Colonel Jones said that his questions
had been solely intended TO bring out this
point. He believed firmly that the sink
ing fund commissioners had carried out
the law as they understood II. ana thi5
emphasized the great need that the proper
authorities should examine an ordinance
before its adoption.
CONTRARY TO LAW.
Mr.. w NJ. Turpin. WAS then examined.
He said that il would have been impos-
sfbla 10 have managed the fund more
contrary 10 law than IL had beeh' ana
the consequence was that there was now
no sinking fund M all 1t was due. ne
said solely 20 an erroneous Interpretation
Of the law. It had been determined 10
conduct the fund i'm n legal manner IN the
future but Il would grow slowly as
against the city's large debt
Colonel Jones again returned TO the
question Of keeping q separate account
Of the sinking fund for each bond issue.
and asked Mr. Turpin If that was not
fine correct Interpretation of the law. Mr..
Turpin replied in the affirmative.
Mr.. Meredith said that the proper meth
cd was 10 wipe out the past and TO start
a general sinking fund.
Colonel Jones said that unless me
sinking fund for each bond issue were
seoarated the fund would be administer
cd Just rs it mad been I'm the past ana IL
was necessary. therefore. 70 open sepd-
rate account for each issue or bonds
from now on. and credit each with IT'S
rro rata of / per cent. set aside.
Mr.. q. ". aHrdwicke, being next ques-
toned. stated that the commissioners
had been administering the fund i'm ac-
cordance with their construction OF the
city ordinances, but he thought the con-
struction had been erroneous. He thought,
however. that the Council had been more
10 blame than the commissioners, who
were bound to obey its behests.
AR Uardwtckc expressed the opinion
that n sinking fund should be created
against each bond issue. and hdd sacred
for the redemption Of such issue In order
that compound interest might result IN
a sufficient sum to redeem IL.
The knowledge that TIE fund was not
being administered in accordance with
law. said Mr. Hardwicke was due 70 the
labors of Special Accountant Carlton Nc
Carthy. who had fcrreted IL out, and
called attention 10 Il.
Nir. James Caskie said he had been