Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-04-14


RECENTLY APPOINTED BY COUN-
GIL, LAST EVENING rs THE
CONVICTION OF MEMBERS
THAT THE ENTIRE CITY IN
DEFICIENCIES COULD BE RE-
FUNDED AT PAR, AT THREE
PER CENT, AND THAT THE IS
SUE WOULD BE TAKEN RIGHT
HERE AT HOME-INFORMATION
TO BE SECURED.
The special Council Committee ap-
pointed some time since to deliberate
over and bring in report upon Mayor
Sweeney's proposition to refund the
city debt at a lower rate of interest,
met last evening and organized by
eleoting Mayor Sweeney chairman. Be
fore any business could be transacted,
however, His Honor was called out on
business of another nature, and the
three remaining members of the COM
mittee present, with Clerk Watkins,
discussed the proposition informally at
considerable length.
1t will be remembered it was the idea
of the Mayor, as expressed in his mes
sage. tnat the present debt, which now
bears a fraction less than six per cent.
interest, could be refunded, owing to
the abundance of money seeking safe
investment, at something like three or
three and one-half per cent, thus saw
ing a considerable amount of interest
annually, the new issue of bonds to be
payable after one year. That is, the
first year after the loan was authorized
by the people interest alone would be
paid, and annually thereafter one
twenty-fifth of the principal would be
payable, a very different proposition
from that voted down by the people
some time since. when it was proposed
to pay interest upon the entire amount
of principal for ten years before any
principal was paid
The amount of bonds to be issued
would, in round numbers. be about
gentlemen present last night, that the
bonds could be sold right here at home
at par, on three per cent. basis. In
fact, one gentleman stated he thought
any one of three banks he could name
would take the entire issue on that
basis.
At present the city is paying about
100000 of interest annually, and about
the same amount of principal, making
a total of in the neighborhood of sixty
thousand dollars a year on account Of
debt. If the debt could be refunded on
a three per cent. interest basis, about
fourteen thousand dollars per year
would be saved in interest alone, which
money could be applied to other city
purposes. The first year after the new
issue went into effect the interest
charge would be $4,000 instead of
about $50 900 as at present. The second
year there would be this interest plus
one-twenty- of the principal. or
$4,000, a total of $38,500, as against
about 100000 at present, and annually
thereafter the payment would be less
by tbs interest on the principal paid,
thus giving the city more and more OF
a xIrplus every year through the grad
ual lessening of the interest charge.
During the discussion last evening
the City Clerk was asked to secure from
dealers in city securities comparative
statement of the net results of bonds
offered in series. running twenty-five
years, or drawn by lot annually, and
also as to what premium would be paid,
say at 31a per cent, as against pro-
posal to take the issue at 3 per cent.
at par. This and other data will be
obtained and another session of the
Committee held in a short time.