Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1902-04-14
COMMUNICATED
MUNICIPAL AFFAIRS.


are confronted by condition OF sfairs
that well merits the mott careful and
psinttaking consideration. The CITY
Council has been called upon for S2O,-
600 for the improvement Of the gas
works, and the question OF having a
special election to pass upon the ques-
ton Of the issue OF $50, 900 of bonds for
street and sewer improvements and the
gas works Ia now presented. Already
there has been call for nearly 81 .OCO
for the electric plant to pay the run
Ding expenses OF the current year. 10
addition to this, about $50, 900 of 6 per
cent. bonds mature in July 1902. How
are all these things to be me a? If the
bonds are Issued under the recent act
Of TIE legislature, aud they are sold at
par, $50, 600 will be realiz d; but under
the express terms OF the act the money
can only be ueed for street and sewer
improvements and the improvements
to the gas works; 500, 900. at leatt,
will be paid upon the gas works, leav
ing only $50 600 for ell street and sewer
improvements. But from whence is the
city to derive the money to meet the
repairs which must shortly be made
upon the electric works, and meet the
$50, 900 of bonds maturing Ia July?
Funds must be raised in some way TO
meet these obligt tons. The city has
In times past borrowed money from the
oanks from time to time; and it has
been said that arrangements have been
made by which the Sinking Fund Com.
mission can raise the money for the
bonds maturing In July. Can we trust
git1 absolut3 assurance that the money
can be borrowed when the time comes?
Il is exceedingly doubtful whether the
city can borrow money In this way;
and, certainly, no one else could bor-
row it for the city unless the city he'd
authorized 1t. No one has seen fit to
raise the question about this right here
toior.; but when large expenditures are
10 be made which materially increase
the rate OF taxation, any tax payer
would have the right 10 try to
prevent the city continuing as 1T has
been to borrow money; and 1t Ia doubt
ful wht Their the banks would be willing
70 lend money when their right to do
80 was questioned, and when any tax
payer might at any time throw them
into court upon the contention that the
city was not bound by the contract OF
borrowing, and the banks might fined
that they would lose their money. I.
is, indeed, a very serious question
this one about the city e right ID borrow
money, or her servants borrow money
for her. Granted thst Council would
have the right to borrow money and
bind the city thereto, where would be
the endp The precedent established
that Council could borrow money for
the city whenever il 30 desired, would
place the City of Alexandria and lite
property owners absolutely at the
mercy OF Council, and, should Council
at any time 80 desire, 1t could enter into
expenditures OF the widest extravs-
gauce and bankrupt and ruin the city
and its property owners by the accumu-
lation OF any amount OF dett.
Why is the necessity of going to the
legislSture from time to time and pro-
curing authority to issue bonds, II the
Council has right at any time to bind
the city by simply borrowing money
whenever il deslresP
Mr.. Dillon, 10 his work on Municipal
Corporations, and he is accepted ss the
highest authority on this subject, says
(Sec. 1867: at does not follow because
banking, trading corporations, and
other private corporations organized
for pecuniary profit are held 10 this
country to possess the incidental power
TO borrow money, and to Issue com
mercial paper \ n that a Ike power
is inherently possessed by public and
municipal corporations. The analogy
Is false and delusive =. The nature
of the usual duties devolvsd by law
upon municipalities does not make it
necessary to empty the existence Of
general power to borrow money and to
issue commercial paper. The conse.
quences OF recognizing such power.
In the extravsgsnce it will stimulate,
10 tae frauds it will engender, and 10
the oDerous indet Eedness 1t will In
evitably produce, are alarming TO con-
template"
Neither the general law nor the
charter Of the city gives Ii auy such
power OF borrowing. The city charter
(Sec. 10) provides that "The Council
shall cause to be annually made up and
entered upon its journal, an account
and estimate of all sums which are or
may become lawfully chareeable on the
said city which ought to be paid with
in one year; and it shall order a city
levy OF so much as 10 its opinion ia the
amount which may be raised from
licenses and other sources"
These matters should be considered,
and considered carefully. At the last
met ting OF Council the committee on
fioAnce and light reported, asking for
the appropriation of 800, 900 to be spent
upon the gas works. It was rushed
through Council the same night with
out any chance to examine the very
long report and figures which were
with the report; without any |
plans or specifications of Improvements
having been made public, 80 that they |
,ould be inspected by members OF
Council. On the same night the ques.
ion OF fixing upon o time for an cleo
ion to determine whether the people
wal ted the bonds Issued or not was
,rongbt up before Council, and, though
heee serious questions were involved,
,nly six days, one of them being SUM-
10 h..