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

resolution. its patron" Mr.. Smith, made
some rtm,rks explanatory OF his position,
, and requested that they be published rs sub
United in order that no In justice be done him.
II not contradictory. they, perhaps are not
OF q character to sped negotiations. BE said,
Tho parties who have had the management
Of our financial affairs for the past 20 years
hsd pursued policy that has not been bene-
iicisl to the oity's interest"
The policy inaugnrsted 20 years ago had
the confidence OF our creditors, ana Rose
charged with the management OF our finar-
| eisl affairs since, and now, will not suffer by
comparison.
Twenty years ago there was funded $42,-
$50 OF pest due and unpaid interest at 5 per
! cent; S2l go bearing 8 per cent, reduced
10 per cent; $32 500 OF bond issue OF S53
and 1904 reduced from 6 per cent. to 3 per
cent. and BIO per cent; the first three hav-
ing been promptly paid at maturity, and also
sls Obligations as 10 tho latter.
II was also stated By Mr.. Smith 'that the
bondholders were not asking for the payment
of tie debt All they ask for and expect Is
the prompt payment OF their interest, and
with this they are satisfied"
And in the next paragraph he says every
one recognizes 1t will be impossible for the
city n pay this debt whom IL comes due. end
it will DO necessary to negotiate another
loan
II this be true land it is, unless we can
barrow at less rate than 1866 per cent?
there is 10 reason for n change now.
The Finance Committee are, however, will
iDg TO make an effort, il conditions justify 1t.
but fear that much could not b, accomplished
on these lines, II those We rely upon to buy
the bonds imagine that some day they would
read the broad statement, 1--WE have paid
enough"
Certainly with this declaration we would
not be in position to enlist the assistance
Of our banks to negotiate a new IosD," which
Mr.. Smith thinks 10 possible.
The following lie given as showing interest
paid by eitef Of this State:
Fredericksburg, A, 5 aud per cent; Win.
chester, 4 and per cent; DanvilIe, d to 8
per cent, Of which "a is at 8 per cent; n at
9 psr cent balance at A, Az aud per cent;
Chsrlottesvlle, 8 per cent; Lypchhurg. 3la,
4, s, o ard per ct; stsunton, 3, 31h. 4, 41a,
per cent F.; Newport News, A, Az, and q
per cent; Ricbmord, 4, 8. @ snd per cent ;
Norfolk, 4. 8, g aud per cent.
Only the last six cities furnish the smount
OF their debt. The aggregate being $i4, 916. :
sos. divided and classified as follows: bonds
bearing por cent, $1l 900; bonds bearing
80 per ctns, ST., 200; bonds besring per
cent, $4,632, S75; bonds bearing An per Ct,
$4,000; bonds bearing per cent, S4,-
530.05O; bonds bearing 6 per cent So 244,.
367; bonds bearing 8 per cent 81, 100, 1888,
Total, $14 916,s65.
In conclusion We desire TO call the atten.
| lion of the City Council and the citizens In
general, 10 the jndicious management of your
public debt By the Commissioners Of the Sink
\ ing Fund; we allude not only TO the present
comm s:ioners, but TO their predecessors, ard
particularly 10 those commissioners who inau.
gursied your present plan OF dealing with the
public DEBT.
We believe the plan has not been equallod
/ aud certainly not exoelled by any city in the
State.
The facts which We present to you will
snbstsntiate this statement.
II BLADDER, Chairman,
+. E. LAwLER,
w. II. SWEENEY,
]. Z N. CURTIN,
Finance Committee.
Upon motion the report wss received and
adopted. Ayes, II; noes, (Mr. SMITH.
The Sinking Fund Com missioneTs submit
| ted the following
Alexandra, Va, January %, 1901.
| To the Honorable, the City Council of Alex.
andris:
Gentlemen: At the last meeting OF your
honorable body resolutions, bearing upor
the subject Of funding our ci'y's debt into
| 81 per cent. bonds, were introduced and theil
| reference has brought to our consideration
the following quotation from said resolu ions
The policy of the ext'Dguishment If the
city's debt is not pursued By any other mnni'
sRsB IL the % METHODS TS your G4F 1anso
! mit!ee aud Sinking Fund Commissioners.
Now while your commissioners are not pos
sessed OF worldwide information. and it Ia
presumed that their predecessors labored IN
der the Same lsmentable disadvantages, yet
rs Virginia is part OF the United States we
| have confined our inquiries within her limits
and bave thereby procured data as to the
plans pursued by cities Of this common
| wealth: aud in pursuance OF this plan we
addressed the following letter to various
auditors:
"Will you kindly inform me per return
mail what is tho rate Of interest paid by
your city on your bonds, slso the method for
retiring through your sinking fund portions
of your debt In Alexandria We draw inter.
est upon our Investments and re-invest such
interest have been informed that In other
cities in Virginia tho purchases made through
the sinking fund sre Immediately cancel ed
aud destroyed, aud desire to ascertain cor.
reotness OF this statement. Very respectfully
E. F. PRICE Auditor.
Richmon '-"Referring to his renort, the
Auditor, psge 90 shows receipts ~ months
including. ss you perceive, interest on city's
bonds held by the Sinking Fund Commits
sioners."
Norfolk-"Our Sinking Fund now amounts
to about $4,000. Tho Sinking Fund
Commissioners have not as yet retired any
bonds, but expect to retire quite large block
shortly. They collect and reinyes. interest
Petersburg-"I beg 10 say that We have 3
considerable smount Of our own bonds in our
sinking fund and 1 psy the interest to the
Sinking Fund Commissioners as would to
any individual holder of bonds, and this
money is renyested by them"
Winchester-"In accordance with the re-.
quirements OF the charter, we set aside one
per cent. OF our bonded Indebtedness, and
which, as far as it will go, is utilized in pay
nent OF bonds as they fall DUE"
Lvnchburg-"Calls in retirss S14, 900" en-.
nually.
There is printed in each Of our bonds Of the
issue OF 1879 these words Its redemption
10 secured by sinking fund. provided for by
eaid act Of the General Assembly" This lie
not printed In tho bonds Of 1872, and these
latter bonds. OF which there are outstanding
about $50, 900, bearing interest at the rate
Of six per cent, are due In 1902, to be paid
promptly at maturity.
In conclusion, as justification of oui
methods, we csn safely point to reduction
Ia twenty years of more than 5000. Of
our bonded Indebtedness, and II the future
can be judged by the past, there must be
disappointment Of the pessimistic idea that
the bonds due in 1909 will not be promptly
met. GEO. L. SIMPSON, Mayor.
THos. W. ROBINSON, City 7reasurer.
EFF. PRICE. City Auditor.