The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-17
HAS ODD LOOK.
Propo ed City Bond Issue
Causes Comment.
Provides for Five Per Cent. In
terest on the Issue.
nTH ED0 DEAD ANCV
OTHERS BEAR ONLY 4.
Would Mean a Difference O.
$4,000.
Believed That Illegal Items Are
Also Included.

City Attorney Spencer is at work
drawing up the refunding bond ordin-
ance to be presented to the special coun-
ell meeting to be held Wednesday night
for the purpose of considering it. Mr..
Spencer says he will draw the ordinance
according to the plans approved by the
ways and means committee, providing
for per cent issue running 25 years
in the amount of about $4,000.
There will be a fight on the ordinance
when it comes before the council. The
attitude of the ways and means com
nlittee is being sharply criticised, cspec-
tally in regard to the long term fea-
ture of the bonds, and the high interest
rate provided.
Topeka bonds can be sold at per
cent. The Santa Fe shop bonds were
per cent bonds. The waterworks bonds
will be 4 per cent. Both run for 70
years instead of 25 as the committee has
provided for in the proposed new issue.
There seems to be little reason Why the
bonds should bear per cent and run
for 25 years.
At per cent, the interest will amount
to So, 200 a year, or $64, 900 in 20 years.
At per cent, the interest will be ST.
600 a year, or 100000 for 20 years. OF
The committee seems to be trying to
fasten upon the city debt of $4,000
more than is necessary Ihat appears
to be the only solution of its action.
Mayor Bergundthal is much opposed
| to including the sidewalk script in the
bond issue. He says that the city Is
| not liable for this debt. and should not
include it in the issue. The amount OF
the script with interest. is 50, ,659.5o. Ii
| this is not included, it will reduce the
! the amount OF
the issue to less than $4,000. The mayor
| is also very much opposed to the long
term bonds. He favor 10 or ~ years.
| City Attorney Spencer says: VIII
have to draw this ordinance according
to the plan adopted by the ways and
means committee. That is the only
thing 1 have to guide me. If the bonds
are issued at per cent. Tor 70 years.
they ought to sell very WE'LL
| The new bonds will be issued in de-
nominations of 81, 900 each. They will
be very much in demand, according TO
present indications Despite the fact
for sale the city clerk has received a
great many letters from bond buyers
asking for information about them
The city Improvement bonds, issued
for building pavement, are paid OIL
one-tenth every year. and are classed
as undesirable for that reason. But
| they bear per cent interest, the same
! as the proposed new issue which is
|
expiration of the time. 1t is not like
ly, however that the city council will
allow the bond buyer quite such
good thing" The high interest rate
and the 25-year term will probably re-
ceive attention Wednesday night.
The old sidewalk scrip, or warrants.
were issued to pay Tor building side
walks, and a special tax was levied to
create a fund out of which the war
rants should be paid. The. non-pay-
ment of taxes has caused the fund to
run behind until $4,000 worth of war
rants are outstanding, and are held
! by banks. The city pays per cent.
interest on them. and will continue to
do so until the delinquent taxes are
paid up, which may be years and may
be never. A few days ago City Treas
these warrants had collected in the
hands of Topeka banks. Today he
stated that the banks had made mis-
take in reporting to him, and that the
real amount outstanding is $5, ,420.69,
with S23S8 80 interest.
! 1t is this class of outstanding war
rants which Mayor Bergundthal is op-
posed to including in the refunding
allow the warrants to run until paid in
the manner provided by law. The only
advantage in paying them off would
be to change the interest rate from 6
per cent to either per cent or 4 per
cent, the case may be.
City Treasurer Hale is unable to give
an exact statement of the size of the
bond issue, because it is not yet known
exactly how much the court costs will
amount to, how much interest on war
rants can be included, or whether the
sidewalk script is eligible for admiS-
sion. The estimates on the amount
which have been prepared by Mr.. Hale
have given the interest on warrants fig
ured up to January 1, 1904. 1t is prob
able that no interest accrued subse-
quent to November l. 1908, can be in
cluded. AS nearly as can be estimated
at the present time, the amount of the
issue exclusive of interest on warrants
subsequent to November 1, and exclus-
i've of the sidewalk script, will be $T3,-
500 and inclusive of these two items
will be $79, 500, a difference of 1000
which will have to be discussed by the
city council.
The law under which this bond issue
is to be made is the one passed by the
last legislature authorizing any city of
the first class to refund its floating
debt. 1t was intended to help out cities
which had suffered from the flood by
enabling them to issue warrants for the
work of cleaning up the city, and then
refunding the warrants. The extra ex-
pense in Topeka for flood damage was
is being utilized, however, to get rid of
taII kinds of floating debt. For instance,
Topeka will include $500 asphalt re-
pair BILL 81, 200 for new fire hose, and
about Sc, 900 worth of old judgments
which have been standing against the
city for years. Some $4,000 of the total
amount is the portion which constituted
the old floating debt which has been
gradually accommodating for five years
because of extravagant administration
The law under which the issue is
made is in part as follows:
s.Section 1. That every city of the
first class be and the same hereby Is
authorized and empowered to compro-
mise and refund all its outstanding war
rants. orders, judgments and other ma
tured and maturing floating indebted
NESS Of every kind and descriptior