The times. [volume] (Richmond, Va.) 1890-1903, 1902-01-24

..r1 response 10 your inquiry, L beg TO
say that. in my opinion. you were no.
legally authorized TO order the SAFE oA
fhe SjSpeo OF Virginia century bofds,
owned by the city as part OF It's SINK
ing fund. unless some part OF the city
3obt was due. or was about to become
due, in the payment of which debts the
proceeds should be applied. The fund uf-
DER your control was created by secuon
6s. CT the city charter
CONTROL OF COUNCIL
MIR. Pollard quotes this section, and
odds:
by this section ito is snotIfspecifically
provided what body should haSe control
of the Sinking Fund, hut simply that the
Council shouldgofaye authority to ere
ate q proper body, either a committee
board or designate certain city otnclaiS
to take charge of it, nor was it provided
what should he the specific duties of
such body i'll the management OF iale fuilC,
except all Investments were limited to the
purchase of bonds Of the city or
those issued by the State Of. Virginia
or by the United States. hence, in my
opinion, it must be implied that in all
other matters relating TO the management
and control Of the fund, the Legislature
intended that the Council should pro-
vide by appropriate ordinance. 1t goes
to manage and control would not author
fze legislation that would destroy, but
such as would foster and secure 1t from
loss or destruction.
But in order to find authority in the
charter from the Council to pass ordi-
nances providing for the management or
the fund, we are not left to the implied
power of the Council, but we find by sec
lion 10 of the charter that it is provided
as follows:
Ia The City Council shall have. sub
feet to the provisions herein contained,
the control ana management of the fiscal
and municipal affairs of the city, and all
property, real and personal, belonging TO
the said city; may make such ordinances.
orders and bylaws, relating to the SAID
as it shall deem proper and ncces-
TO PAY THE DEBT.
This provision expressly requires you
to hold all bonds when purchased as an
investment until some part OF the city
debt shall become due and only autho-
riZes q sale so far as the proceeds may
be applied to the redemption of the city
debt
..Deeming it pertinent. beg, however
TO say that, in my opinion, the Councii
may now, by Joint resolution, Iatify your
action and confirm the title of the pltr-
CHASER DOLQS, Nilltil lttW
feet
RESOLUTION OF THE BOARD.
In reference to the matter, the Board
ADOPTED this preamble and resolution:
Whereas, the Board Of Commissioners
Of the Sinking Fund of the city of Rich
1nond, acting under authority Of law, pur-
chased during the years 1898, 1899 and
1900 $4,000 State Of Virginia century
bonds at the price of $S5 for each 500
Stat. o1 Virginia bonds, the total cost
bci9.g S5,,719.25; an6. whereaC, at a full
meeting OK ss:5 Board, held on the 18th
Gay of December. 1901 the Following re-
eolution was unanimously adopted:
'That the Purchasing Committee be au-
thorized and instructed to sell the s6S,O0O
of Virginia century bonds owned by the
city at not less than par net. provided
that the major part Of the proceeds from
the sale of bonds can be invested in city
bonds at rate paying not less than 5 IL
per cent" and,
..Whereas, said Purchasing Committee,
scting under resolution, did. on the l4th
rr December 1901. sell $4,000 of said
State bonds at par net, realizing from said
sale $4,000, and did on same day rein
rest said sum of $1,000 i'll and per
rent. bonds Of the city Of Richmond at a
price paying tho city at the rate ot )
sd per cert, and
s'Whercas, q profit OF &,aao was rea-
Ezed by said city from saie sale Of State
bonds. and the rate of interest accruing
10 said city from the purchase of said
and S per cent bonds is 81 OF enc per
tent in excess OF the interest it was re-
seiving from said State bonds. sold as
Aforesaid making an annual profit TO
The city Of S;2750 to the date Of maturity.
md
Whereas. said Board 1T the time it
made said sale of S57 900 said State Donds
Ind invested The proceeds in said city
sonds. believing it was acting under au-
shority OF law. made said sale and IN
tcstment as aforeaid; and
..Nhereas, since then a question has
trisen as to the authority OF the Board
testrnent as aforesaid; and
..Thereas. the City Attorney, at the
enuest of said Board has filed with II
written opinion to the effect that as 40
TART OF the city debt is now due. the
BOARD was without authority to make
aid sale. but that it is within the power
II the City Council, il 1t sees ut so do do
y approve ratify and confirm the action
f said Board in making said sale OF
tate bonds and rcinvcst1nent in saic
s.y bonds: now. therefore
..Ye it resolved by the Council OF the
tty of Richmond, the Board OF Aldermen
io,,crr.ing, That the action OF sait
toa.a in making said sale Of $4,000 STATE
pads which were duly registered in TIT
tuditor's Office Of said State. and III
einpestnlent of tie proceeds OF said sal,
h city OF Richmond six and eight pc
s,nt bonds, as aforesaid. is hereby full!
improved ratified and confirmed.
This resolution will be presented at tn
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