The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-08

temporary loans which has obtained dur
ing the past two years, a continuance of
would be rendered absolutely necessary by
the inability of the city TO discharge such
loans from current revenues within the
next ten years, without materially increas-
ing the burden of taxation, and should
J there come an unsettled condition in the
money market the city might find itself,
instead of paying 32 per cent. interest on
its bonds, in the same condition in which II
was placed during the last year of Mr.. Sui
livan's administration, when il was COM
PEELED to pay not only Z $40 per cent. inter-
est upon its bonds. but an additional bonus
of one-half Of l per cent. TO a New York
financial institution to have its credit pro-
'Second-This action fixes for all time, or
until the debt has been eXtinguished, the
responsibility for its creation.
LAS a general proposition / am opposed
to any increase in the permanent debt of
the city, and it shall be my purpose in the
future to avoid any such increase. Under
the circumstances, however, l feel that this
administration is not chargeable and can
not be held responsible for the bond issue,
rendered necessary, as it has been. by the
acts of the preceding administration. 1t
shall be the purpose of the administration
TO conduct the affairs of the city within
the revenues derived from all sources. and
in the accomplishment of this purpose L
bespeak the earnest cooperation of your
honorable body"
At its meeting last night the general
ordinance to authorize the bond appropria-
ton was brought up for it's first reading
and was referred to the committee on
finance for action of that committee to-
night. The ordinance was prepared by City
Attorney Joss.
PURPOSE OF ORDINANCE.
The purpose of general ordinance No. Ct,
as set forth in the title, is to authorize the
issue and sale OF 1877 funding bonds of $1,000
each of the city of indianapolis, payable
from the general revenues and funds of the
city, or from the sinking fund, or as may
be required by law, in order to raise money
to take up and fund certain temporary
loans of the city which by their terms are
payable on the I'd day of December, 1901,
a~ggregating $195,00O; prescribing the time
and manner of advertising the sale, the
receipt of the bids, the mode and terms of
the sale, the appropriation of the proceeds
of the sale, the time and manner OF the
payment of the temporary loans, providing
for the funding Of the Indebtedness repre-
sented by the temporary loans, and liking
the time when the same shall take effect:
The ordinance refers to the fact that the
following temporary loans are included in
the city's Indebtedness: One for $4,000,
issued Aug. /, 1901; one for $4,000, issued
Sept. 8, 1901; one for $4,000, issued Sept: t.
1901, and one for $4,000, issued Oct. ., 1901,
making an aggregate Of $4,000, all matur-
ing Dec. 2, 1901.
lie OLullldAlCG hG1ldl65 That IL - ~ 49,
best interests Of the city of Indianapolis 10
pay off the temporary loans and fund the
Indebtedness covered thereby; and that
there are not now, nor Will there be, SUI
fcient funds in the treasury TO pay the
temporary loans. 1t states the existing
necessity of borrowing $4,000 and issuing
bonds In that amount, payable from the
general revenues and funds of the city. the
sinking fund of the city, or as may be re-
quired by law.
AUTHORIZED TO REFUND.
Section l of the ordinance authorizes the
controller to fund the total Of the tenn
porary loans, a~ggregating $4,000, exclusive
Of interest, which natures Dec. 2, 1901. Sec.
2 authorizes the controller to issue 1877 new
bonds Of $1,000 each, designated Indian
apolis funding bonds Of 1901" which shall
bear interest at the rate Of 39 per cent. a
year, interest payable semi-annually on
Jan. l and July l OF each year., beginning
with July 1, 1902. The section further pro-
vides that the bonds and interest coupons
shall be negotiable and payable at the
banking house of Winslow, Lanier q Co,
of New York city. Bonds numbered from
l to Z. inclusive, shall be payable July l.
1902, i'm the amount of $1,000, leaving the
remaining s-emi-annual payments each in
the amount of $1,000. the last payment on
the bond issue is to be made Jan. l, 1917, at
which time all the bonds shall have ma
tured. The section further sets out the
/ lOIIn Oh liz Jill " DC So0N0- - oASO
cites the act of the General Assembly au-
thorizing such a bond issue.
Sec. 3 of the ordinance refers to the ad-
vertising for bids for the bonds, specifying
the usual details incident to such bond Is
sues.
Sec. 4 provides that every bid presented to
the controller shall be accompanied by a
certified check on some bank located in In
~dianapOlis payable to the order OF Armin
c.. Koehne. city treasurer, for an amount
which shall equal * fid per fcr cent OF the par
The section provides that the controller
shall receive bids until noon on Nov. Y,
1901. at which hour he shall open all bids
presented. The controller shall have the
right to award the total amount of the
issue, or only a part of 1T. TO the highest
and best bidder, but the right is reserved to
reject any or all such bids or any part
thereof. He is made the sole Judge of the
suficiency or insufficiency of any and all
bids.
troller shall reject all bids sumbitted, or
shall award only a part Of the bonds, he
shall readvertise the bonds remaining un-
sold in the manner previously prescribed.
OTHER PROVISIONS.
Section 6 states that in case no bids are
accepted the controller shall return to each
unsuccessful bidder the certified check
which accompanied his proposal. 1t pro-
vides, also, that on awarding the whole or
any part of the bonds to a bidder, he shall
QellNeT THE CCIlllCd NACNh WHICH dCCOll-
panies the bid to the city treasurer, who
shall present the same for payment at once
and shall hold the proceeds collected until
the completion of the purchase and the
payment for the bonds. If the check is not
paid on presentation the award of the bids
shall be nullified.
Section Z declares that the delivery of the
bonds shall be made to the office of the city
treasurer on Dec. 2. 1901, at 10 o'clock a. m,
or on any such other day or days at 10
o'clock a. m. as may be specified in the ad-
Vertisement or reimbursement for pro-
posals. or within such time as may be fixed
by the controller, who shall have the right
to extend the time not more than ten DAYS
after the day or days specified as above
provided.
Section s refers to the liability Of the city
of indianapolis. stating that the bonds shall
be binding obligations on the city, and pro-
vides that the loan shall be applied to the
principal and interest of the debt above
described. 1t authorizes the controller to
draw all proper and necessary warrants.
and to do whatever acts shall be necessary
TO carry out the provisions of the ordi-
nance.
Section 9. the final section. states that the
ordinance shall be in full force and effect
from and after its passage and approval
by the mayor.
The Republican members Of Council are
a unit apparently in favor of the passing
of the ordinance. In discussing the recon-
mendation of the mayor and the ordinance
after Council meeting several of the Re
publican members took occasion to warmly
compliment the mayor. 1T is taking the
bull by the horns" said one of the gentle