The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-08-23
BIG BOND ISSUE
Is CONTEMPLATED
CITY CLERK INSTRUCTED TO
DRAFT THE ORDINANCE.
Controllers Positive Refusal TO Ger
tify Any More Contracts for
Which Money Is Not Actually in
Hand Together With the Crying
Need of Completing Projected
Sewer Work Leads Certain of the
Councilmen to Launch the Long
Talked-of Issue.

A big city bond issue Is one of the
possibilities of the closing days of the
present year. 1t is projected by the
councilmen whose constituents are
clamorirg for sewers and they have
gone so far as to instruct City Clerk
Lavelle to draw up an ordinance pro-
viding for the same. The clerk is now
at work on the ordinance and IL will
likely be presented at the meeting of
common council, two weeks from to-
morrow night.
Just what the amount Of the issue
will be cannot be stated with any de-
gree of positiveness, but it is likely
to be not less than quarter of a mil
lion.
Much will depend on the extent to
which the city can go at this time
in adding to its Indebtedness. City
Controller Howell is engaged in pre-
pairing a statement of the city debt
and until that is completed there is no
telling where the city stands, as the
statement prepared at the time of the
bridge issue of s25O,00O is no index of
the present condition of the excheq-
uer.
THE LIMITATIONS.
The limitations prescribed by law are
these: A municipality may through
Its proper officers contract an indebt-
edness to the extent of two per cent
of the assessed valuation. Should it
be desired to increase the indebtedness
beyond two per cent the consent of the
electors must be obtained. To increase
the Indebtedness above seven per cent
of the assessed valuation the sanction
of the court must be obtained.
This city at present has a real estate
valuation of S21 900, 900 and total val
uation of $23,t0O,OOO 1t is an open ques-
tion as to what "assesed valuation" is
intended to mean but as the real estate
only is made security for the bonds,
the percentage has all along been COM
pute1 without any consideration of per-
sonal property.
Seven per cent Of the assessed valua-
| ton of real estate would be $l,470, 600.
! The margin between this limit
| of Indebtedness and the present indebt-
| edness is the amount or bonds that
| may be issued The amount of bonds
| outstanding, the estimated annual ex-
| cess of expenditures over revenue for
| the year in which the issue is to be
| hOated, the amount of outstanding
| judgments and the appropriations made
without money being actually provided
| to meet them must all be figured up In
| arriving at the indebtedness.
Those who are projecting the new
| issue are very hopeful that there will
| be sufficient margin to permit of an
issue large enough to meet the expense
of all the city improvements duly
| authorized by ordinance, such as the
new sewers, or those that are deemed
absolute necessities and which must
soon be provided for such as the i'm
provement of Nay Aug park and the
like.
WHAT MONEY IS WANTED FOR.
Select Councilman Fellows who Is
one of the leaders in the new move is
! particularly anxious for the increased
| revenue that the $150,000 Nineteenth
district sewer may be completed. The
| North End councilmen want money tC
| complete section r of the Fifth sewer
district, which extends along NORTH
Main avenue from a point a few hun
dred feet below the corners to the
Parker street intersection and also OF
some of the contiguous streets. Tht
fact that this stretch of street cam
be built until the sewer is built makes
the anxiety of the Providence men al
the greater. The other sections of tn,
Fifth sewer district under contract
the South Side sewer, the Scranton
street sewer and others of lesser conse
quence all demand revenue which tn
city can not hope to secure through
its ordinary sources and If they ar
ever paid for it must be by bonds.
The scheme to make a big issue o
bonds has been talked of for some time
but it was not until yesterday that i
assumed tangible shape. Controlle
Howell was importuned by NJ ]. Glib
hons, contractor for section r of tn
Fifth sewer district and Councilman
Fellows, who is particularly intereste
in the Nineteenth district sewer, t
certify to the contracts for these tw
improvements. The controller positive
ly refused to do this. because tn
money was not actually in sight
Thercupon Mr.. Fellows consulted wit
other councilmen who have bee
heard to talk in favor of the idea O
floating bond issue that would cove
all those deficiencies and provide 70
other needed improvements. They toll
l. 70 alss, ,R,1 H.