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

The recommendation is as follows:

1GN - 49,
81 approve the recommendation OF the
controller urging the passage of this ordi-
nance in the belief that ii represents the
best and most businesslike manner of car
ing for the temporary loans made by the
preceding administration. An examination
OF the books of the controllers office shows
that there were left unpaid by the preced-
ing administration current bills for the
month of September and other months ag-
gregating $4S,344.S7, to which should be
added the further sum of $24, 900. SO of Sep
TENDER bills approved by the Board of Pub
lie Works and the Board of Public Health
and Charities after the 10th day of OctO-
Der, 1901, making a total of unpaid bills
of the preceding administration of $751;
247.46.
Should the temporary loans made by the
preceding administration, together with the
unpaid current bills left by such admins
t~ratiOn, be discharged from the current
revenues of the city it would be necessary,
in my judgment. for your body to make a
further temporary loan in the month OF
December TO meet November pay rolls and
other city obligations, while other tempo
rary loans would be required In the months
of January February. March and April,
1902, 10 meet pay rolls and bills accruing
against the city in such months.
THE fixing of a sinking fund tax by the
Common Council in September, 1901, has in
my opinion provided a most satisfactory
manner of meeting this floating debt which
has been accumulated during the preceding
administration. especially since the adOp-
ton of the 59-cent levy in September. 1899.
IN TGCOflfltIullB lllS COuIot L PROCEDURE
/ am governed by the belief that it will re-
move the troublesome question of tenn
pOrary loans from the management of the
financial affairs of the city. 1t may still
prove necessary to make a temporary loan
in March, 1902. to meet pay rolls and other
urgent city obligations, but 1 am of opinion
that by careful and economical manage
ment of the city affairs even this loan can
be avoided.
DEPLORABLE CONDITION.
1.-THE condition of the city treasury at the
commencement of this administrator on
Oct. 10, 1901, was most deplorable. All ap-
preparations were practically exhausted,
while, as 1 have before shown, city obliga-
ions incurred prior to the commencement
of this administration a%ggregatlng $73.2 47. 46,
remained unpaid, with but about SIG. 1000 In
the city treasury. For the further infor-
nation of your honorable body l submit
herewith a communication of the city con-
trOller setting forth, after careful tabula-
ton, his estimate Of the condition of the
city at the expiration of the current year.
together with his recommendation as to the
best method of providing for the payment
of the temporary loans which were handed
over TO this administration by its prede-
cessor:
temporary loans issued Aug. 1. Sept. 3.
Sept. Z and Oct. I, 1901, a~ggregating Sf95. 600.
which said loans, with interest thereon,
$l.45S.3S, become due and payable Dec. 2,
1901.
The estimated expenditures to
Dec. 81, 1901 $3S5, POI. is
Temporary loans and interest due
Dec. :, lyOl 196, 455. IS
Total 1851, 655.54
Estimated receipts to Dee. S1....... 4O5, $50. %
Excess of expenditures over re-
celptS .S1I4, l26. 81
" This deficit must be provided for with
out delay by issuing bonds or temporary
loans.
Grafton the practicability Of refunding said
temporary loans of 1856. 900 with bonds
which shall be made TO mature in annual
or semi-annual installments. thus gradual
" paying on such bond issue. / am Of the
opinion that bonds thus issued bearing 30
per cent. interest can be sold at a premium
I'm conclusion l wish 10 again approve
the suggestion of the controller. believing
that it presents the best method Of extri-
eating the city from the condition in which
this administration found IL. In approving
the suggestion that the bonds TO be issued
should bear 3ia per cent. interest | do so
after having made inquiry OF the repre-
sentatives of various financial institutions
of the city. believing that it would be i'm
possible, owing TO the right reserved by the
city to repay its bonds in instaIlments. as
provided by the ordinance this day sub
mitted TO your body, to negotiate the same
at a lower rate of interest. / am satisfied.
however. from such inquiry that the prem
ium bid for such bonds Will reduce the net
cost 10 the taxpayers TO less than 80 per
cent. per annum.
REIMBURSEMENT OF BONDS.
Under the plan outlined in this ordi-
nance $1,000 of the bonds will be ex-
tinguished on July 1. 1902. from the pay
ment TO the sinking fund made in May,
1902. while on the 1st day Of January. 1903.
and upon each recurring six months period
thereafter. a further sum OF $4,000 will be