Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1901-06-22
BUSINESS or NEW COUNCIL
Finance Committee Reports and New
Ordf ance Adopted -Moxemeht To-
ward Enforcing All the city
Ordinances--A Busy



For two hours the City Council was
IN special session Thursday night.
transacting q vast amount of business
Mayor Henshaw was in the chair
and councilmen Porter, Martin. Cline,
Staubly. Westenhaver, Eversole. Kline,
Brown, Lloyd and Heck were pres
ent.
The new Finance Committee made
the following report which was nm
animously adopted;
REPORT OF FINANCE COMMIT.
TEE.
To the Mayor and Conncil of the
Corporation of Martinsburg -
Your committee held three meet
ings, two in connection with the Or
dinance Committee and beg leave to
submit the following report in regard
to the refunding of the existing in
debtedness of the Corporation of
Martinsburg.
As the act which authorizes the is
sue of these bonds does not fix the
rate of interest except that it shall
not exceed four per centum. we con-
Guided to adopt the rate. As four per
cent bonds are now selling at con-
siderable premium, and ms other NUM-
clpaliiies have adopted lower rate,
we deemed it the part Of wisdom to
aim to get the lower interest rate,
rather than the higher premium, be-
lieving that in the end balance of
profit is in favor of the lower rate.
The outstanding bonds are of the
denominations of $l00C0 and $500. 90
and it was suggested that the new is
sue should be of three denominations,
500, $500 and 81, 600. We recommend,
however, one denomination of $500. co.
Among the reasons controlling us
are /. A bond of large denomina-
ton is more desired by investors than
small one. 2. But if too large, it
may prevent local bidding, and en-
barrass us hereafter in calling or buy
ing in the same. 3 The cost of en-
craving and printing bonds, which is
a considerable item, is chiefly in the
plate and new plate would be re-
quired for each seperate denomina-
ton, thereby doul ling the expense, if
only two denominations were issued.
AS happy medium we have chosen
the $500 90 bond
We recommend that the bonds be
made demandable in thirty-three
wears and redeemable after twenty
years. Our view as to the manner of
redeeming and paying when the right
to do so accrues, is embodied i'll the
ordinance, and the reasons for it will
suggest themselves. As to uostponing
the time of optionable redemption,
two reasons controlled us / The Ion
ger the fixed period the bond has to
run. the better it is supposed to sell. |
and as this is tine largest issue the |
Corporation is ever likely to make, it /
IS desirable to get the lowest rate, and +
the highest premium possible Another I
issue for smaller amount has been
already authorized, and when the
same or any part thereof is to be is
sned, shorter per cd of optionable
payment, can if desirable, be adopted.
Dur recommendation in regard to
OF advertising, selling and is
suing the new bonds, and calling in
and pay ing the old, will appear from
-he ordinance which has been prepared
in accordance with our directions.
Its feasibility, safety and fairness.
will, Sra think, commend the ordin-
ance III TINS respect to all.
Owing to want of time, the bonds
cannot be put on the market by July,
list next; hence we have recommended
that they be dated and bear interest
rs of July, 18th. If this should not
give time enough, the slight advan
tage TO the bidder, will, we think, be
allowed for in the biddings; and the |
receipts of the Treasury are such as
10 make il verv desirable that the IN
stallments of interest should be pay
able in January and July. The dupll-
cation of interest during the time al
lowed for calling in the old bonds Is
unavoidable, as no call can be issued
ninth a sale Of the new bonds is as
snred and as the ordinance under
which these bonds were issued I'M
fortunately made no provision for the
time and manner of notice in calling
them in, we have deemed ii prudent
to have given he notice usually re-
CURED, before undertaking to end the
runniug of interest This we think,
is not only fair, lut necessary to avold
controversy about interest with the
holders Of the GU standing bonds
The provision tor the sinking fund
is required by law. An ordinance
g., 4I, ,,o,,aoa,,,a,,t