Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-02-12


or the Board of Sinking FUND Commits
sioners, was next called upon, and. being
asked as TO the conduct OF the sinking
fund, said that he only knew that he
ana his associates had followed the lines
laid down by their predecessors. and
that. while he now believed this was not
In accordance with law he thought the
members had done their work consclen-
tlousiy. The Mayor said he would be
giad TO answer any questions. but none
OF any consequence were asked him.
THE AUDITORS STATEMENT.
Auditor Warren, as secretary Of the
Sinking Fund Commission, was asked how
the affairs OF the commission had
been conducted. He said he had done,
as Mayor Taylor had already said, the
work being done exactly along the line
pursued by his predecessors. He had
been secretary OF the board about five
years. The sinking fund, so far as he
could learn. did not begin until 1874 ac-
cording to the entries in his office. Every
six months from that time up TO the
present time H. of / per cent of the
city's debt had been taken out Of the
city's funds and turned into bank. There
was now nearly $4,000 in the Mer-
chants National Bank and there was
king about $4,000 10 the credit %
the fund for investment The money
referred 10 was actually in bank. From
this accumulation of / per cent con-
siderable sums of bonds had been re-
deemed. The Auditor referred TO the
history OF Richmonds bonds from the
days when she issued S-per-cent. bonds
to the issues OF the first of the A.
per-cents.. during the course Of the
erection Of the City Hall. The amount
set aside had only been appropriated to
the payment Of interest, and the redemp-
ton Of bonds.
Mr.. Zimmerman: Isn't it important.
Mr.. Chairman, for the committee TO
know about how many bonds have been
cancelled by this accumulation of 1-per
cent, without resorting to new bonds?
IL should think 1t would be-" replied
the chairman.
81 could not possibly give you that"
said Auditor Warren.
II did not think you wanted that. 1
can make up a statement Of 1t to-mor-
row, however, or by the next meeting Of
the committee"
PROVISION OF THE CHARTER.
Mr. Jones asked whether II the char
ter provisions had been carried out, the
sinking fund would have been any larger
than it IS. To this the Auditor re-
piled that. had none Of this money been
paid out for the redemption OF the citys
debt. all the money would have been in
hand. The Auditor added that II had
been the experience Of every city I'm the
country that he knew anything Of or
read about, that. as the city grew, the
debt grew with It. Mr.. Jones further
questioned Mr.. Warren as TO whether
the Sinking Fund Commissioners, by the
present system of conducting the affairs
of the fund. meant to carry on a con-
tinual increase in the debt of the city,
instead of a diminution. The Auditor
said that it would diminish the debt, but
for the issue Of new bonds
would not the effect Of the execution
Of the law by the Sinking Fund Com
mssioners. as construed by Mr.. Mere
dith, mean that there would be larger
holdings in the sinking fund, even with
the issuance Of new bonds?" asked Mn
Jones.
81 could not answer that question, Mr..
Jones'" said Mr.. Warren, in response.
'1f 1 were to. it would simply be giving
my opinion, and It would be Of no more
value in this matter than your own"
1--WE are after opinions, seeking all the
light we can, so as to evolve some better
plan or system for carrying on the bust
ness Of the sinking fund" replied Mr..
Jones.
THE CITY ATTORNEY.
After some further discussion OF this
matter Mr.. Meredith, the City Attorney,
here again appeared before the committee,
and said that there was no question that
the Board OF Sinking Fund Commissioners
had not conducted its business in accord
ance with the terms Of the charter. He
did not, however, think that the commits
sioners were so much to be blamed, as the |
ordinance governing them and the charter |
provisions were in conflict; that whoever |
drew the ordinance was not an accountant |
and did not see the complications which |
might arise. The Sinking Fund Commits |
sioners fell into the error, very naturally, |
Of supposing that the ordinance had been /
drawn in accordance with the provisions |
Of the charter. Mr.. Meredith thought the |
ordinance should be promptly changed so /
as to comply with the charter and make
the Sinking Fund Commissioners apply |
the proceeds from the 1 per cent. laid /
aside TO the retirement of bonds hereafter
to be issued.
Mr. William NJ. Turpin, President Of the
Board OF Aldermen, new member OF the
Board Of Sinking Fund Commissioners
was
he affairs Of the fund had been admins
erred lust as contrary to law as possible.
lie had no doubt that the fund had been
administered, but the effect OF
Is conduct was that there was no sink
ng fund. while there should really be
very large one Mr.. Turpin said the COM
nissioners should now start a sinking
und in accordance with the law, and lay
aside the / per cent. upon each issue OF
he city bonds.
THOUGHT THEY WERE DOING
RIGHT.
Mr.. Hardwicke said he did not believe
he sinking fund had been conducted in
lccordance with law, but that the commits
.ioners had executed their business along
What they supposed to be proper lines. He
houeht the business had been conducted
recording TO the construction the MEM
,ers placed upon the city ordinances. The
,nly way the present big bonded debt
.ould be wiped out was by the issuance OF
Few bonds. and then to set aside the per
ent. upon each issue, that II might com
,ound itself and pay off the debt contract
a when IL falls due. Mr.. Hardwlcke
dded that a big issue would be due In
9Oi and that this plan would then be car
led out. Mr. Hardwicke was Of the opin-
ON that the City Council was more large
v TO blame for the bad management or
he fund than the members Of the Sinking
FUND Commissioners.
Mr. HARRISON asked Mr.. Hardwicke If
e did not think the members of the
board Of Sinking Fund Commissioners
hould have looked into the laws regu-
ating their office. Mr.. Hardwicke replied
" saving that the Council should give its
Ulcers facilities for doing this. which 1t
ad not done.
Mr.. Caskie said he had been a member
{ the Board Of Sinking Fund Commission
IS for about six weeks. and since that