Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-08-25

AT THE SESSION OF THE SPECIAL
COUNCIL COMMITTEE QUITE A
NUMBER OF PERSONS PRE-
SENT-MR. TERRILL EXPLAIN
ED HIS IDEAS REGARDING THE
PROPOSED LOAN AT SOME
Neutrality-suspicious. REFER
RED TO THE SOLICITOR, HE TO
REPORT AT THE NEXT MEET
ING.
The special Council Committee on Re-
funding the City Debt assembled at the
City Hall last evening, and was in ses-
sion for about two hours All the mem
bers of the Committee were present ex-
cept Mr.. Waterhouse. who did not
reach the city until late in the evening,
and who could not find it convenient to
be present. Mayor Sweeney presided,
and there were present, in addition to
the membership of the Committee, with
the exception noted, quite a number OF
Councilmen, Sheriff Richards, Mr.. Ter
rill, of the United States Mortgage and
Trust Company, New York; Receiver
Forgey, Solicitor Nesbitt, City Clerk
O'Brien, and others
When the body was called to order
Mayor Sweeney stated the object of the
meeting in general terms, and was fol-
lowed by Receiver Forgey, who read a
copy of his circular letter to out-of-town
bankers and dealers in municipal bonds,
saying that perhaps fifty copies had
been mailed A summary of the lead
ing answers to these letters was print
ed in the Register yesterday morning.
1t was then suggested that Mr.. Terrill
be given an opportunity to address the
Committee, and he did so. This gen.
tleman first called attention to the
great Importance of safeguarding is
sues of city bonds, and illustrated this
with an instance where his house had
once made a purchase of half million
of bonds, and it afterwards transpired
that other bonds, purporting to be of
the same issue, got into circulation. An
investigation showed that the bonds
bought by the house were all right, but
the incident caused the conviction that
municipal bonds, as generally issued
were a somewhat precarious invest
ment, without some absolute safe
nd ho 70 nd
a remedy found, which consisted in his
house printing bonds from plates es
pecially prepared for it, bearing the
guarantee of the Company that the
bonds were what they purported to be,
and that certified copies of all papers
relating to the issue were kept by the
house, which would furnish copies to
interested parties on application. This
made an absolute guarantee, which was
a good thing for all parties concerned.
They had now issued about sixteen mil
lions of municipal bonds under tbs
plan, and they were more readily
marketed and brought a higher price
than bonds prepared in the Old way
On the question of the rate of inter
est, Mr. Terrill said he would not adj
wise four per cent bond, although he
had observed that some of the answers
to the Receivers letter advocated such
rate. The city could scarcely market
a bond at three per cent, but he
thought three and one-half or 1855
might go at good premium Pro-
ceeding, Mr. Terrill said:
Il would suggest a serial bond. A
sinking fund designed to run for
number of years to pay off bonds is al
ways menace. There is always a pro-
liability it will not be wisely invested
or applied to its original purpose. This
is forcibly illustrated in decision of
the Supreme Court of Pennsylvania,
which has held that money in a sink
ing fund cannot be credited against
debt in making a debt statement, but
that the only credit is bonds actually
redeemed This shows that the Court
recognizes the liability to misapplica-
ton of funds, etc. On the other hand
is the argument that it is not right for
the city to pay interest for ten years be-
fore commencing the payment of prin-
cipal, and it is often advocated that
something like two and one-half or
three per cent. of the capital sum
should be set aside annually and paid
for the redemption of bonds at the ex-
piration of the ten years. In this view
of the case it might be well for the city
to make the payment of a certain num-
Der of bonds optional after ten yeaors,
so that if the money is on hands the
bonds could be called in If the pay
ments of principal can be made to COM
mence the first year, a serial bond is
best. That was not true a few years
ago. and even now some houses do not
approve of it, but most dealers in this
class of securities now argue that when
city names date for the payment of
bond it means to pay its debts when