Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1899-09-03

consideration by a special Committee
of Council, is a topic which has deep
interest for the taxpayers. and has
| caused large amount OF discussion
during the past week. There is wide
| divergence of opinion as to the plan
submitted to the City Solicitor at the
last session of the Committee, upon
which he is to draft an ordinance, and
quite a respectable proportion of senti-
| ment-if not a preponderance-is
strongly in favor of a decided modifica-
| ton of the proposed ordinance. The
| elimination of the debt of the Water
Board from the refunding plan was
undoubtedly step in the direction of
popularizing the proposed loan, and
yet there has been retained an equally
Objectionable feature-the outstanding
orders of the city to the amount of
| $4,000. The decided indications are
that popular sentiment will not look
with favor upon any proposition TO in
corporate into the bonded debt of the
city any item not created strictly ac-
| cording to law. for to do so would be
to set a very bad precedent, and one
| which might seriously embarrass the
city in the future. To a refund of the
! bonded indebtedness of the city, pure
| and simple, at a lower rate of interest.
as was originally proposed by Mayor
Sweeney in his first annual message to
Council, there has been little objection;
but when this idea was loaded down
with riders of one sort and another,
and in the light of the methods pur-
sued by the City Hall officials to pro-
cure alleged information from outside
bankers and bond dealers. opposition
was developed. This opposition has
been intensified by the Interpretation
of the State law that no issue of city
bonds can be made without running
for ten years before redemption, and
sentiment in the direction of letting the
situation alone, as it will be nearly as
cheap for the city to continue to pay
off a debt bearing approximately six
per cent interest, as it becomes due.
as to refund it at even 31s per cent.
and allow the principal to run for ten
years without payment upon it.
Illustrating this point a Register re-
porter yesterday talked with a gentle
man somewhat conversant with the
financial condition Of the city, and he
said:
After a close study of the situation
as | understand 1t, | am persuaded that
it would be well enough for the city to
go on paying it's debts as it has been,
and this for variety of reasons.
Zone of these is, that the city will
continue to stand unique among Amer
lean municipalities as paying off its
debt, in an age when nearly every 9th
er city is increasing its issue of bonds.
We are paying our debt at the rate OF
over $4,000 per annum with cores
bonding reduction in the interest
charge, and this means that each re-
curing year, without increased taxa
ton. there is more and more money
available for current city expenditures,
not alone from this source-the saving
of interest-but from the natural in
crease in taxable property, which this
year alone amounts to half a million
dollars.
Another reason for going on as we
have been, is the immense saving IN
good hard dollars to our people. Our
present bonded debt is little over
$500 900. and the annual interest rate
is a little less than six per cent. The
present year the interest charge was
s25.S43.24, as nearly as / can get at it,
but this is rapidly becoming less. For
instance, this year we paid off the last
of the loan of 1877, and reduced the
other loans, with the exception of the
two issues of stone bridge bonds. Next
year we commence upon them, with a
resulting lessening of interest charges,
and in 1901 the electric light loan will
be wiped out altogether. We are pay
ing the principal at the rate of more
than $50. 900 per annum, and it will be
only few years until debt and interest
will have ceased to be burden. To be
sure. it is a favorite cry at the City Hall
that we are paying our debt too fast
Conceding this for the sake of the ar
gument is it not better to continue to
pay. and study economy that we can
paw, than to refund our total debt. ey-
en- at the rate of 31a per cent, and al
low the interest to run for ten years
before we can recommence payment on
the principal? If we refund our debt
the interest charge would be $4,000
per annum on s424,500, and in ten
wears would amount to S150,000, with
the original debt still confronting US,
whereas. in ten years. at the present
rate of payment. more than one-half
the city debt will have been paid, and
the remainder will have ceased to cut
a figure. This is one Of the points to
be considered by the tax-paying pub
lie. But there are others.
1--WE cannot refund the entire city
debt The electric light loan and the
second series of Main street bridge
bonds must remain as they are. The
net debt available for refunding is
1924. 500. which includes $4,000 Of out
standing orders-a debt created with
out authority of law, and which should
not be legalized by matchmaking 1t
with the city's bonded Indebtedness.