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

was adopted
on motion Of Colonel Jones. Mr.. Mere
dlth was then ~eqaested 20 inform the
committee as 10 the law hearing on the
city's sinking fund
THE SINKING FUND.
In reply 10 this request Mr.. Meredith
read from tho charter which says that
there shall annually be set apart sum
not less than ] per cent. OF the city depb
TO be known as the sinking fund.
Mr Meredith then read TO the commit
tee the following ordinance bearing on
the matter.
after designating the number of mem
bers. time ot MEETINGS. etc, the ordi-
nance says.
AT each semi-annual meeting the Audi
tor shall present a fun staten ent. snow
ing the amount OF the outstanding pub
lie debt. and the interest already due. or
10 become due thereon within the ensuing
half wear. and the amount with which the
Board IS chargeable on account ~ ad-
vancements previously made 10 satisfy
any portion of the interest then overdue
and when payments are 10 be made 10
the city Of moneys arising from the pro-
cecds OF sales OF real estate and from
persons paying Communication OF culvert
taxes. tho Auditor shall. by his warrant.
and deposit IL 10 the credit Of the COM
uissionors Of the sinking fund.
REDEMPTION OF PRINCIPAL.
"After providing for the payment OF the
interest the board shall apply any resi-
due Of the funds TO their credit TO the
redemption Of such part or the princlpal
of the city debt as may be redeemabie
II no part be redeemabe. such residue
shall be devoted 10 the purchase. az mar
kot value Of any outstanding negouable
notes. certificates OF debt, or coupon
bonds Of tho city debt. purchased or re-
deemed. shall be Immediately cancelled
I'm the presence Of tho president OF the
board. and certificates OF debt TO the
said board. corresponding in amount.
rate Of interest, nd date Of maturity
be issued I'm lieu of amy such bonds pur-
chased II no bonds or certificates OF
debt OF the city can be purchased IN
vestment may be made In registered
bonds of the State Of Virginia or OF the
United States. the accruing interest
whereon shall when due. be collected by
the treasurer on the order Of the audi
tor and deposited to the credit of the
board. All such bonds or certificates.
whether Of the city. or State of Virginia.
or of the United States, shall be held by
the board until some part Of the city
debt Shall become due when, so far as
may become necessary. they shall b"
sold. and the proceeds applied 10 the re-
demption of the city debt. For the pur-
poses contemplated by this section, the
board may apply any FUNDS 10 their cred
if. provided. that there be always retain
cd a sum az least equal 10 ninety per CEN
tum OF any interest upon the city dept
due or 10 become due prior 10 their next
semi-annual demand upon the city treas
ury.
PAYMENT out Of any funds 70 the
credit Of the board shall only be made
upon checks signed by the city treasur-
or. upon the face of which shall be print
cd. i'm conspicuous characters. the words:
Sinking Fund" Such checks shall only
he issued by The treasurer. upon the back
Of warrant signed by the auditor, as an.
ditor and as secretary Of the board and
specifylng upon trer face that the same
is pavable on account of interest due.
or princinal Of the city debt, or invest
meut ordered by the board. and unless
tho warrant specify that the amount 10
be paid is due on account of interest
the same shall be also signed by the pres
idcnt of the board.
THE auditor shall issue his warrant
for any Interest due upon application In
person or by attorney Of any party ap-
of any certificate Of debt or upon the
presentation OF any matured coupons
every such coupon 10 be cancelled In the
presence of the party presenting IL. be-
fore delivery Of the warrant, unless there
be some reason TO doubt the holders
title. I'm which event he may call meet
ing of the board and require the1r in
structions.
"The auditor and treasurer shall each
keep books specially labelled. and re-
served for accounts of the board. I'm which
they shall retain receipts for an war
rants or checks issued upon account of
tho board
"As soon as practicable after the first
day Of January the Treasurer shall rem
der TO tho Board a full account Of the
amount standing 10 their credit in the
several repositories OF the city. showing.
I'm detail. the several items Of credit dur
ing the previous year; and the Auditor
shall furnish FUN statement OF the
outstanding city debt. setting out the
amount OF interest due and unpaid, or 10
become due during the ensuing year ana
OF the principal thereof maturing for pay
ment during such year.
4 FULL STATEMENT.
"The Auditor. with his January report
shall return a fun statement Of all dis
bursemcnts ordered By him as Secretary
OF the Board during the previous year.
distributing tho same between the three
several heads Of interest. redemption. and
Investment. The interest account shall
show how much has been paid on account
OF the registered debt. and how much on
account OF matured coupons.
after the receipt OF the January re-
ports Of the Auditor and Treasurer, the
Board shall carefully examine the same
and require the Auditor TO produce be-
fore them all coupon bonds and cou-
pcns cancelled and all matured coupon
bonds paid during the preceding year.
I'pon careful review OF such accounts, the
Board shall cause all such coupon bonds
and coupons 10 be burnt and destroyed
in their presence. preserving a fun rec
ord thereof"
Mr.. Meredith, after reading the above.
cited some extracts from the charter.
and explained 20 the committee that there
was a great discrepancy between the two.
the wording OF the charter requiring the
Commissioners TO form a separate sink
ing fund for each bond issue and 70 pre-
serve il inviolate 10 redeem each issue.
thereby securing the benefit Of compound
interest.
Mr.. Meredith expressed the opinion that
the ordinance should be amended 10 con-
form TO the charter and also that II
should be further amended so as TO allow
the commissioners TO invest such portions
Of the sinking fund as are not required to
redeem bond issue. not only IN bonds Of
the city Of Richmond. but IN any sound
securities.