The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-02-04
REVOLVING FUND.

"ToSDaycr'' Replies to the Globes
Objections TO Revolving Fund.
To the Editor of the ST. Paul Globe
The proposition before the charter commits
sion to provide revolving local improve
ment fund to enable the city to pay prompt
~ its contractors for public improvements
is l notice in your article in The G lob o Of
"a inst, regarded rnfavorably. The princi-
pal objection apparently being the danger
that city officials Llight divert such n fund
TO other purposes, as done in the in
stance referred to by you. Your article
states 1T was an antique device at time
When expenditures were heavy and debt
paying thing far off The usual end Of
1t was, that the fund was drawn mon for
payments OF exempted property and for other
purposes until there was nothing of if left ,,
II Would De measure of justice to con-
tractors H. when local improvements are to
pc made, there were some source from which
FUNDS were to be derivable so as to be turned
over When the work was completed y
Cther.' ia
Should this objection be cbviated do
net see IRON your article any ground to OBJ
pose the pending proposition as meritorious
ana there is abundant authority in the en-
aiding act fer the new charter to sustain if
The more recent provisions, appearing as
what is known as the Bell charter very
carefully prevent the CITY treasurer fron,
seSsmentS. This officer is required to "keen
separate and distinct account for MONEYS
received or to be received for each local i'm
proyement, for which an assessment is
made" etc. *8l mo ordinance v,or
rant or order of the common council mr. of
any officer, boaEf or department of said CITY
snail nave any power or authority to auth
orlze the city treasurer to divert any of said
special funds, referring to proceeds of spe-
ctal assessments, = cor 10 borrow
and transfer any balance or portion Of one
or the said funds to the credit of another
fund" Municipal Code of 1893, page 66.)
The city treasurer may be prosecuted Grim
inally and punished by fine and Imprisonment
Tor violation OF his duties in this respect
page ~, and any fnfraction of these re-
qulrements might also be made cause of
might be added 81 40
The object Of such revolving fund is NOT
to befrlend contractors, however, but is 10
protect our property owners and save them
from eXorbtant charges and heavy loss
contractors generally look out for them
selves. and take good care in their bids To
add a large margin over the market nrice
to indemnify them for the uncertainty and
loss which they would sustain in the present
conditions.
1t is estimated by reliable persons that the
prices for such contract work under tha
present system will range from % per cent
to 30 per cent, or even 40 per cent over
cash prices promptly paid.
The proposed change affords a remedy for
this difficulty and just ground of complaint
of our property owners in this matter.
me collections of delinquent assessments
bearing interest at the rate of IL per cent
per annum would no doubt fully repay the
city for its advances and leave a consider
able surplus besides to it's credit in the re-
volving fund l informed by old city Of
fcers who have been long connected with the
city government such as William P. MUIR
ray and others. that this would have been
the result IN the instances you refer to if
the collections in these cases had been ap-
piled to pay for the work for which they
were made. and had not been diverted to
different purposes, as noticed by you
Why should not contracts for the city
improvements accord with ordinary prudent
business rules and practice where the con-
tractors receive and the parties liable for
price? TAXPAYER.