Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1901-01-15
THE SINKING FUND.

The Sinking Fund as its name i'm
plies is created to sink or gradually
pay off debt. In the statement
read in council on Tuesday, January
Sth, by Mr.. b. B. Smith, reference is
made to the investments of money OBJ
| tanned from the rents of stalls, benches,
etc., in market house, he says: "This
is unlawful and should not be tolerated
by the people of this city fora moment"
and '"The council has thus indirectly
taxed the people to pay this debt with
outtheirknowledge or consent" With
no intention to enter into discussion,
and recognizing the value Of the people
havingtheir attention directed through
their representatives in council to I'M
lawful or even questionable trans
actions, upon the part of the COM
mittees or officers, plain statement
can be made.
1t is important to bear in mind that
charges are made, at least by i'm
plication in the language quoted.
First, that the law officers of the city
have prepared, the city council has
passed, and for thirty years have pas
sively allowed, the various mayors,
treasurers, auditors, presidents of the
council, and its committees on finance,
to continue an unlawful practice.
Second, that the citizens and taxpayers
are considered so densely ignorant as
to be taxed without their knowledge
or consent.
A comment on the first indictment
| UNLAWFUL BY an act of the city
council passed February 26, 1856,
creating permanent sinking fund it
is provided in section 1, "That there
shall be annually added to the es-
innate for revenue to be raised for
other purposes, the sum of S5,000.00
which shall not be appropriated to any
object other than herein provided for"
Section of the same act says, 1.-The
auditor shall draw his warrants upon
the treasurer in favor of said commits
sioners for the fund provided for in
first section, and also for all Interest
accruiaq mon stock purchased and credited
az herein provided for as we'll as upon
any other stocks under their control, u
etc. :,
| Under this act S5,000.00 was each
year appropriated from the tax levy
and the commissioners also drew the
interest upon their bonds and stocks.
In the seventies bonds were twice
issued. In 1872 what was known as the
consolidation act was passed. This
was not readjustment of the debt,
the object being to embrace all bonds
under one head. Just prior to this
arrangements we're made to erect the
new market building and an act was
passed June 81, 1871. The act is too
/ long to quote in full, the second section
lis as follows: "That the commissioners
of the sinking fund shall have control
over the rents of the stalls, stands,
and benches in the market square, and
of such rooms in the market building,
mot occupied by officers of the city
government, and which shall be set
apart by resolution of the city council.
Section 3. That the revenuederived
from rents of stalls, stands, ETC., shall
be collected by the clerk of the market
and deposited with the commissioners
of the sinking fund, etc.
"Section 4. That the commissioners
of the sinking fund are hereby au-
thorized and required to keep the
building on the market square insured
against loss by fire, etc., and shall
from time to time invest the revenue
derived from sale of stock specified IN
first section of this act, and shall from
time to time invest the revenue derived
from the rents ofstalls, stands, benches,
rooms, ETC., in the market square, and
buildings thereon in the stocks or
bonds Of this corporation, or in such
other stocks or bonds as they may deem
most advisable land shall in like man
ner invest the interest arising from
such investments)."
1t is to be presumed that in so inn
portant matter that the legal adviser
of the city council prepared this act.
If such be the case it was the work OF
a man who day in this city ranks as
high as anyone in his profession the
corporation attorney was Francis L..
Smith, Jr,
In 1888 it was found necessary to
attempt a compromise of our bonded
indebtedness. The effort succeeded.
Charles E. Stuart, Jr., was corporation
attorney, and an act waspassed October
80, 1879, Amending an act to create a
permanent sinking fund.-" and the
language is largely on the lines, and
in many instances identical with the
act Of 1871, restricting the commits
sioners however, to the purchase OF
corporation bonds and stocks.
| George A. Mushbach was member
of council, and on July IA, 1891, voted
with others, for an ordinance author
Iizing the commissioners of the sinking
| fund to erect in the market square a
shed for the proper accommodation of
| the country people and pay for the
same out of the sinking fund. Ger
tainly no one can justly charge chat
either of these eminent lawyers would
advise or encourage an unlawful act.
lift is urged that the collection of
market rents and devoting them to a
sinking fund, instead of following
strictly the act of the General Assembly
shall annually, and until such bonds are
maid. lew and collect tax is unlaw
full. it is not however dishonest-satis-
actorytocreditors- andpossibly would
be approved by the courts. If unlaw-
full to convertmarket rentsinto sinking
fund holdings, it was unlawful for
council to erect the market shed, by
ordinance, pay clerk of market salary,
insure building, etc. Prior to the
erection of the market shed the COM
Imissioners of the sinking fund asked
Corporation Attorney S. G. Brentas to
their powers to erect a market shed.
In an answer dated July 8, 1891, he
saws that they ''must Unrest the reve-
nue. derived from the renting Of the
stalls, etc., as provided by the ordi-
nance, and cannot in my (his) judg-
ment, without an ordinance of the
city council, be applied to any other
purpose This law officer, by infer
ence at least, suggests that council can
authorize the sinking fund to use its