The Portland daily press., 1900-08-14

's@4S0 10 ohe poAoy OF redeem1ng
the city debt and not to speculate as 1t
now Is doing Ia support of this PROPOSE
ZION no quoted from an ex-mayor of the
city ana "a prominent 1inancier whom he
ala not name, who said. THAT the best
way the city can utilize us money is to
save It and reduce its outstanding IN
debtedness rather than speculate with
it.
Mr. Woodslde went on AZ great length
TO explain his proposition more fully. He
said that the sinking fund at present is a
bone Of contention. II has been borrowed
from by some city governments and 1t is
a question on which the supreme court
OF The state Is divided as to whether the
city has the right TO borrow money from
its sinking fund or not. One member of
the Supreme bench told him, so he said,
that should an attenpE be made by the
city to borrow any more money from the
sinking fund the Supreme court of the
state might inter fere.
Dir. Noodside said that If the proposed
ordinance Is passed It VIII make il inn
possible to borrow from the sinking fund
and make it compulsory for this fund 30
be used for the purpose for which It is
intended, namely the reduction of the
city's debt as it comes due. lie said that
in his opinion and IN the opinion of
many prominent citizens whom he had
consulted II seemed wise for the city 20
retire the 500, coo p and D. bonds which
come due in 1902 by disposing Of the p.
and o stock. lie went on TO show that
by doing this the city of Portland would
strengthen its financial condition. He
said that par value of the stock is valued
at 500 ana pays two per cent interest. 1t
is really worth only $50 and is therefore
carried on the books as four per cent
investment. some people advocate that
as long as the city can borrow all the
money it requires 1T three per cent or
less il is good financial policy for it to
retain its p. ana q. stock and refund the
bonds as they come due, as it is thus
practically making one per cent or there
abouts on the speculation. Mr. Woodside
argued that it would be wise and safer
FOR the city TO pay its debts and not
specuiate IN this manner and to bring
this about he had introduced this ordi-
nance. lie said that ia other cities the
tendency sesmea to be TO do away with
the sinking funds altogether as they were
regarded IS dangerous ana productive Of
nlismanagemenE or encouraging TO
fraudulent transactions. But in the case
OF the city of Portland ha said it would
Ike wiser 20 have the sinking fund so tied
up that il could only be used for one pur
I pose anyway and that for the reduction
Of the city debt.
q. obs hal fetr, faf
I ing to the investment OF the sinking fund
over the sam OF $780, 100 Al present the
sinking fund Is said to be invested in
unpaid taxes Dus AIr. Woodside said there
was limit 20 the investment and all OF
the sinking fund over that sum should BE-
Z Invested IN some way 50 that It could
bring into the city some income.
Mr.. Woodside's remarks were very in-
Geresting, but we're not fully understood
Dy all Of his hearers An effort to bring
about az indefinite postponement Of this
ordnance was defeated.
Dr. Bowers expressed his Interest in
the subject and said that IN the main he
: agreed with M. Woodside, but be wished
; TO more fully understand the questions
involved IN this ordinance before he voted
, upon them. Mr.. True also seemed TO
! favor Mr.. Woodside's proposition. de
said rnat the city would nsver again
make The foolish Investments it made
wnen Il went into The Portland and
Rochester, the Portland and Ogdensburg
aud the Marginal way matters, and he
thought some effort should be made to re-
duce the gross debt OF the city and get
down onto a sound financial basis.
Mr. Comedian thought that the mem
Bers Of the council should be given plenty
Of time to investigate this matter and on
MS motion Mr.. WoodsIde's ordinance was
laid on the table until The next meeting.
THE NEW ALMSHOUSE.
Mr.. Woodside introduced an order au-
thorizing a commission consisting OF the
Mayor, three members Of the board of
overseers and three members of the city
council TO advertise Tor bids for an
aImshouse at some site which they
may select and authorizing the use Of
the. Harrington fund, so-called, for such
part of 1t as may be necessary to build
this aImshouse.
The plans for the new almshouse must
first be submitted to the city council FOR
their acceptance.
DIR. Bowers asked Mr.. Woodside If the
plans for the new aImshouse included
those for new city hospital. II IL did
he would like TO know why the board of
health was not given a representation
on this commission.
Mr.. Woodside said that he understood
that Greeley hospital was not to be moved
at present
MIR. Woodside's ordinance passed the
council by a vote OF is to 3, and was
sent up for concurrence.