Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1901-01-23

edge or conse1t, have convcrsed with a
large number Of the taxpayers OF thia com.
munity and hsve asked them the amount OF
taxes they paid on account OF the debt, and
have ye, to find ssiDgle man who gives me
any information upon the snhjeet. The
taxes which have been levied AID collected
should have b zen applied to the improvements
Of the city and mt to tho payment OF tho
debt. 1t ia i'm, o sible for US IN our life time
to ply of this obligation, and We ought not
now to DO required to pay any more than a
Just proportion, ard that, | think, We have
paid. The AUDITORS report "City of Alexsn-
dris, 1894, page 3d. shows that up to that
time $216970 had been retired. Suppose
this sun had been scent ia thu improvement
Of the streets and in inducing capital TO start
enterpii e. and manufactures in our midst,
certainly we would not now DO behind every
city 10 the Siste-eyen Fredericksburg has
recently appropriated between Thirty and
forty thousand dollars for the constIuc ion OF
sewers. favor improvements In order that
cur labor:ng men may be employej, In order
that or business men may do more business,
in order that our real estate may be enhanced
Ia value ar in order that our tsxez may be
reduced. ! favor the immediate issue OF new
bonds 10 run for forty years and to bear In
terest at the rate Of three and oue.hslfper cont
per aBnum. In order that the outstanding deb;
may be redeemed and paid, and the PRESENT
system of the payment OF the debt may be
sbolished. The Sinking Fund Commission.
ere" when tho debt was compromised in
1879 under an ordinance Of the City Council
Of Alexandria took charge Of the rents COL
lectsd from the market and invested them in
bonds Of the city. After this investment hsd
been mide the City Council continued 10 pay
interest upon the bonds so purchased notwith-
standing the fact that they had been pur-
chased with the city's money aud was no
longer debt due BY tho City Council. This
policy was pursued until the 2Stb day Of
September, 1894, when the commissioners
generously allowed the certificates in their
possession. amounting to Sill 800, TO DO do
stro7td and then cta ed to draw interest upon
the certificates. When this was done the
commissioners resumed business at TIE "od
stand and are pursuing the same policy to-
day. 1t is this system of retiring the debt
that wish abolished.
| Dir. Snowden Mr.. Kelly in the chair)
said Mr.. Smiths own statement contra
dicted itself Ia stating that the money
paid by the people 10 taxes should have
been applied to improvements and not
to the payment OF the debt, and then
setting forth that no taxes were levied
| for paying Of the debt. He said the
taxpayers of Alexandria had not paid
one cant since 1879 toward the reduc-
ton of the debt except that for interest
spaid to the Sinking Fund Commits
sioners.
Mr.. Smith-Where did the money
come from?
Mr.. .Soowden-It YVES derived from
the revenues of the market.
A considerable discussion ensued and
Mr.. Smith 10 r,ply to q question said
that bis plans did not contemplate any
additional taxation.
Mr.. Snowden-Where then will you
get money for Improvement?
Mr.. Smith--We will levy special
tex
Mr.. Snowden-Then you will in.
crease the tax rate.
Mr.. Smith-No; we will lower it.
Mr.. Burke said that Mr.. Smith wss
the most remarkable financier ever
known. He proposed to expend
money without raising money.
The report Of the Commissioners OIL
the Sinking Fund was then read.
Mr.. Snowden explained the operations
of the sinking fund and showed how
much it bad saved the city. He said
the sinking fund commissioners were
acting just as they did in other cities,
aud contended that their position was
correct in every particular. He de-
plored the fact that Mr.. Smith had set
forth ia q reSolQtinn tho. - 'r--is Be
impossible for the city to pay its debt.
when sioce 1879 every obligation OF the
city had been promptly met. Such
statements, he said, did the city's crel-
it no good. He then read extracts from
Mr.. Smiths statement of two weeks ago
and answered them. He said Mr.
Smith says: ut will readily be seen
that the sinking fund is not established
10 accordance with the Act oil
the General Assembly, as the
city has not levied and collected
any tax for the payment of the indebt-
edness, but has transferred the rents re-
csived from the stalls, etc., in the mar
KEEL to be invested in the stocks, bonds
and other Indebtedness of the corpora
tion." 10 answering this Mr.. Snowden
said that Council had perfect right to
set aside the rents OF the market build
irg and quoted prominent lawyer OF
the city who had said that not only the
rents should go to the sinking fund, but
tax should also bs levied to help to
extinguish the debt. Quoting Mr..
Smith again, "The policy pursued by
the council has succeeded IN increasing
the price of the bonds OF the city which
have risen from 4Sc 10 1879 to 1908 In
1900" Mr.. Snowden said: The records
show that there has been purchased by
the Commissioners OF the Sinking Fund
since 1879, SO, 100 bonds issue of 1872,
bearing per cent, for which they paid
SIT 800, frsction less than Sc cents on
each dollar. During same year $113, 200
bonds issue OF 1879 was purchased for
| $75, 752, or about 81 cents for each dol
lar. Look at 1t In the total, sl33, 800,
purchased for $40, 900, or less than the
amount named on bonds.
Again quoting Mr. Smith-"The
policy OF the extinguishment OF the city
debt Is not pursued in any other mu-
oicpality 10 the world. Take any pro-
gressige and go ahead city in this conn
try and you will fad that it has 10.
creased rather than diminished its
debt"-Mr. snowden read the follow
ing extract. from a New York paper:
"A gratifying illustration Of the grow.
ing tendency toward economy in gov
eminent Is found in the annual mes
sage of Mayor Hart of Boston. He
points with especial pride to the reduc-
ton OF the city debt by some