The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-08

In the town OF Warwick during the past
IA years there has been an increase of
s663500 net Indebtedness, the total at pres
ent being $4,000. The town for the same
period had annually been expending
s7Si5.ol on an average more than the aver
age revenue. These startling facts were
announced to the taxpayers at their spe-
cial meeting yesterday afternoon.
On the advice of Mr.. Chase, the expert.
who ascertained the above facts, the
town treasurer was empowered TO issue
$50 900 of temporary tax loans. the same to
Nbe paid out of the taxes collected in 1905
when collected. Mr.. Chase also recon-
mended the levying of a higher tax to de-
crease the towns Indebtedness.
Mr.. Chase Was engaged to close the
books OF the late town treasurer. J. b.
Allen. and reported many discrepancies
and complications In the accounts. He
found q balance due from Mr. Allen of
$2l7 is. Mr.. Chase characterized the finan-
cial conditions in the town as IAN illogi-
cal, absurd and demoralizng situation"
which II was up TO the electors 0f War
wick TO change Immediately.
The taxpayers also heard of bad condi-
tions in various OF the school buildings
OF the town from the committee ap-
pointed to investigate the affairs OF the
several. school buildings I'm the town.
Recommendations which provided for
sweeping changes In many OF the struc-
lures, in some cases amounting to reno
vations and complete overhaulings OF the
present buildings or the constructions OF
new buildings.
About 300 taxpayers were in attendance
when the meeting began at 2 o'clock in
the town hall at Apponaug. Clarence
y. Carpenter, moderator, presided. The
proposition TO authorize town treasurer
George T.. Sheldon to hire $4,000 was
first taken Up. Mr. Chase remarlung that
he appeared for Mr. Sheldon. who is
i'll. presented a long report. He stated
that the total revenue receipts for the IA
years past amounted to sl.935. .a66.ss, and
the total running expenses OF the town to
S.03S, SO. making a net deficit OF s102.-
S30.51, or an annual deficit of S7345. .04. In
only three years, he said, had there been
surplus of revenue.
UNJUSTIFIABLE
The remainder OF the increase of debt
for running expenses he declared as "un-
justifahle, either financially or morally"
Such borrowing of money for running
expenses he styled as being sure to
ultimately lead TO the bankruptcy OF
either an individual or a government"
This issuance OF debt for running ex-
penses." said Mr.. Chase. should be
stopped and at once. How can IL be
done? IT can he done by levy'ing every
year tax sufficient to pay the running
expenses Of the town i'm full Then. when
money must be borrowed before these
taxes are collected. these borrowings
should be issued as Temporary tax loans
and set UP In the books as anticipated
taxes 1903
when the taxes are collected they
should be first credited 10 this 'antici-
pated taxes account. until these borrow
ings are fully provided for. Only the
taxes received over and above these tenn
porary borrowings should be available for
other purposes.
1T IL perfectly evident that the tax
rate OF Warwick for IA years or more
has not been high enough TO bring in
revenue equal TO the towns running ex-
penses. Yet every year the town has
made appropriations and the ton coun-
cils have issued orders for additional ex-
penditures outside of the appropriations
in excess OF the total revenues this cx-
cess averaging as we have shown s7345.Oi
an increase In your tax levy should be
immediately voted, so that YOU may. at
least This year. pay your running ex-
penses out OF actual revenue.
"As II stands today, Warwick has but
small margin for legitimate Improve
ments for which debt may be created, be-
cause OF the fact that the town has used
up 40 much OF It's debt by borrowing
money 70 psy running expenses Noss-
over, on your big issues or notes. interest
must be paid at prevailing rates. which
are excessive. Further, these totes es-
tablish an amount OF debt equal to your
bonded debt but for which az present
YOU have no sinking fund provisions.
THAT is 10 say. you are yearly escaping
the necessity OF providing sinking funds
10 nay of these notes. while. AZ the same
time. you arc loading of this necessity