Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1902-05-20
TUESDAY EVENING. MAY %. 1902
o., Tu,1penAv next the question


shall the city issue $4,000 additional
bonds will be voted upon. The meas
ure was passed by an almost unanimous
vote 10 the City Council, aud under the
law it must be submitted to the people,
This is a democratic government, and
should the majority favor the measure
the bonds will be issued, and the NIL
nority must bow gracefully and submit
Before the election, however, some
matters should be understood. 1t Is
intended to spend 800. 900 of the $50, 900
proposed loan in improving the city
gas works. 1t Is admitted that the
works need repairs and improvements
and that it will require the S2O,OOO TO
do the work. But is 1t necessary for
the CITY to issue bonds for this $2O,OOO
at 4 per cent, running thirty years, 10
raise the money, and thereby pay S24'
900 in interest alone to the bondholder'Y
Many think not, when they believe
that the money can be gotten without
any bonds at all, and paid of In COM
Dsratively short time from the proceeds
Of the gas works, with an interest OF
not more than one-tenth the amount
required under the bond issue. That
this can be done is easily shown. 10 1889
the city erected an electric plant
at cost of fully $4,000. In
1890 the next year the city erected
new gas holder at cost OF Sll ,OOO.
This makes $4,000 expended in two
years-$5, 0O0n'ore than is now required
for the improvements at the gas works
Yet at that time no bonds were issued
the notes given have been taken up,
aud the interest paid was bagatelle
compared to what it would have been
ifs bond issue had been made. The
gas works are worth fully 100000
their gross income is about $50, 900, and
1t IL believed they could vel
take care of $4,000 in short term
notes. Now for the other $4,000
OF the $4,000, which it Is pro
posed to spend on street improve
ments, and to secure which $50, 900 in
interest will have to be paid the bond
holders. This money. 1t is said, will be
spent in two years, or $4,000 year
But almost this amount has been spent
during the past year with no bond Issue
and consequently no interest to pay.
10 1896 Y the average street work was
done, and the King street sewer Wss
constructed at a cost OF upwards oil
81 200, yet no bond issue was MADE
theu: the sewer has been paid for and
there was no aftermath in the shape q
coupons, to be paid annually out OF the
CITY treasury. The annual amount OF
interest on bonds paid by the city at
present is $4,000, or about one.third
of the entire revenues. Under the pro-
posed bond bill 1000 more will be re"
qulred for interest, and 1900 must
be set aside annually to meet the
bonds when they become due-mak-
ing $500 additional to be paid
out every year. To meet this
additional expenditure, under the
present tax rate the city's assessment
he - nj
$1S0,000, but the Commissioner of Reve-
nue. has made practically no increase 10
values bis over last years assessments,
and future values cannot be foretold
with any degree Of certainty. Under
the proposed bill, with the bonds run
ming for thirty years, and with no re-
deemable period clause, the city will
have to pay $50. 900 in interest to Dor
row $50 900. When the money is spent
in two years the interest will 60 on
during the lives OF the present genera
ton, and of course that much Of the
city's revenues must be taken from the
other annual expenditures to pay the
bondholders. That $4,000 can be well
expended on the light plant and in
making street improvements no reas-
enable man will deny. but to borrow
the money under the conditions of toe
bill is another question. These matters
should be given mature consideration,
after which should the majority deem
it to the best interests of the city to
make the loan, they should by al
means do so, as the majority have the
right to settle all questions submitted
to them.
REV. DIR. MCGoNNIGLE, OF Florida