The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-02
let THE PEOPLE VOTE ON The
BOND QUESTION.
THE SINKING FUND IS SACRED
Empower the Mayor to Withhold His
Signature From Warrants IN
Excess OF Department.
Share.

the Board or AlueTHeH' ~ 40 y" p
statement of facts and some wise sug-
gestions based thereon. The recommen-
.dations made in this report are good ones;
they show an intimate acquaintance with
tho financial condition of the city and
ought to be adopted.
Mayor Russ has long been connected
with the city government; he is in
position to know what its needs are. lie
not only has the welfare and interest OF
Raleigh at heart, but he has on his should
.ers the burden of making the admins
tration of its public affairs q success
.,or a failure. His suggestions should
therefore be studied with great deal OF
care and adopted wherever they are not
found impracticable. Thus far he has
made a wise counsellor and given the city
a clean economical administration:
To the Honorable Board of Aldermen,
City Of Raleigh.
Gentlemen: Section 65 of the charter
provides: THAT on the first Monday OF
March in each year all the ofhcers OF
the city shall make out and lille with
the City Clerk a fair transcript or all
receipts and disbursements In the depart
ments over which they preside; all the
Officers of the city having any OF tne
property of the city in their charge shaIi
report an inventory of the same ana each
committee of the Board of Aldermen
shall submit annual reports all or Whlch
the Board of Aldermen shall cause TO DO
printed in book form for the generai IN
formation of the citizens.
The wilful neglect of some ofncers ana
committees to comply with TINS require
ment Of the charter, has caused the ue-
Law in publication. / suggest the enact
ment of an ordinance, attaching strohs
penalty, as preventative OF similar neg
iect in the future. These reports, OF
course, of little value to the many DuI
to the citizen who really feels an inter-
est in his town, it is as important as the
annual balance sheet to the business
man.
The report of the City Clerk shows
that notwithstanding the receipts or
the year exceeded those of 1890 by nearly
five thousand dollars, there was dehclt
at the end of the fiscal year, March
Isl. 1897 of seven thousand three hun
<1red ana SlAleeu <AhN AOoA
tS7,316.04) ~ l. sF4als~leks4a1
The Finance committee in their report
assure us this is attributable to the fact
1--WE are doing what no other city under
takes to do, viz: making permanent i'm
provements without issuing bonds"
While we are compelled to admit this is
in a measure true, we are forced to the
conclusion that it is an innovation must
tho credit of CltV
seriously impaired.
The deficit of 1896 added to THOSE Of
1894 and 1895 will give you the amount
of outstanding warrants, eighteen thou
sand one hundred and forty-seven dol
lars and sixty-nine cents, and when, and
in what way are these to be paid! The
Finance committee offers this solution of
the problem: 1--WE have $4,000 of old
6 per cent bonds falling due next July
We are authorized by statute to issue
5 per cent bond for the purpose Of tax
ing I'D these expiring bonds. If we do
this we can take up the outstanding war
rants of the city which. now aggregate
by an accumulation of three years $751;
147.69, and have a surplus for permanent
improvement"
In short they recommend the issue of
thirty thousand 5 per cent bonds with
which to take up the 6 per cent CONSOLE
dated debt bonds maturing July 1, 1897
the money to pay which is or shall
be in the hands of the commissioner of
the sinking fund. Then they propose
to borrow the money in the sinking fund, 4
pay off the outstanding warrants to APP
propriate the reside to the work
of permanent improvement.
While forced to concede the Board the
authority under the statute to issue
these per cent bonds with which to take
up the outstanding skies, l protest a.
gainst the< use of one dollar of the sink
ing fund, either for paying outstanding
warrants OF for permanent improvement.
The sinking fund is sacred fund held
in trust by the city for her bondholders.
Not fund that is convertible as occa-
sion demands or at the convenience OF a
Board to cause its administrations def
cits.
Had the law been complied with,
many of these bonds would now be in the
hands of the commissioner of the sinking
fund, in place of nearly ten thousand dol
lars Of past due city warrants-for the
statute plainly prescribes the manner in
which the fund shall be invested.
The charter provision is as follows:
Sec Fl. That the said commissioner
shall, from time to time under the pro-
vision of chapter 1885, private acts of.
1889, when he shall have sufficient mon
ey in his hands, advertise for ten days
in the daily newspapers for sealed pro-
posals for the sale of the bonds OF the
city issued under said acts. Bids shall
be opened in the presence of the Mayor
and Treasurer, and such bids as are
most advantageous for the city shall be
accepted But said officers, in their dis
erection, may refuse to accept any bids
made, and advertise for additional pro-
posals. Bonds of the city so purchased
shall be cancelled by them.
Sec. %. That il, after reasonable dill
gence, none of said bonds can be pur-