Evening journal., 1910-03-25
CAN REFUND THE
CITY'S LOANS
MIR. Moore, Sinking Fund Com
missioner, Says Indebt-
edneSS Can be Met

In letter TO City Council last night.
the members of the Sinking Fund Com
mission. after calling attention TO the
water loans which win fall due shortly
and the matter Of refunding these
loans deprecated the periodical discus
sion as to the legality Of the different
bond issues and the ability or inabn-
ity Of the city tS-meet it's bonded in
debtedness. The commissioners say
the city is safely under its legal bor-
rowing capacity OF ten per cent. Of it's
assessed valuation Of real estate and
1.-THE idea of repudiating any of its bond
ed indebtedness is too ridiculous to be
considered. The letter follows:
March "a. 1910
Mr.. James Kane, Chairman of Finance
Committee Of Council. Wilmington.
Del.
Dear Sir: Regarding the matter of
the refunding Of the $4,000 and $4,000
Water Department bonds maturing
May and June 1, respectively, referred
to the sinking fund commissioners. Az
ter an examination of the acts creating
these loans. and acts passed subse-
quent to such loans, we respectfully
advise that i'm our opinion these loans
may be refunded through the sinking
fund act if Council deem such a course
necessary.
owing to the fact that the receipts
/ of the Water Department are now paid
to the mayor and Council. IL undoubt-
! edly devolves on City Council TO pro-
vide for and pay these bonds as they
mature.
Inasmuch as the act OF 1904 author.
izing the 100000 loan, of which the
$4,000 bonds maturing June / is a por-
tion, specifies the manner in which
this proportion should be matured, we
would suggest that the whole matter
be referred to the city solicitor for his
opinion and for the preparation of the
ordinances authorizing the loan under
the act OF Legislature of March 25,
1907
We would also suggest that for the
sake Of economy the loans be author
lied and advertised at the same time
making the delivery Of the bonds I,
the purchasers accord with tine tive
dates Of maturity, SO that the propcl
amounts would be in the hands OF
council in time for the payment OF
, same on May / and June 1, 1910. Due
consideration should be given by coun-
vertising and delivery of the issue.
We cannot refrain from calling the
attention OF your committee to tn,
, unfortunate aspect the periodical dis.
cussion as to the legality of thes,
different bond issues and the abilll,
or inability OF the city to meet 10
bonded obligations at their maturit,
presents, not only TO the holders o
! faaNN ..
r prospective purchasers of such, prio
TO their proper presentation to tn,
city solicitor for his consideration ant
! opinion.
Not alone your administration, bu
every administration with which I hav
. been associated during the past 81,
e years or more has been embarrasse
(thoughtlessly) in this way, causin
finance committee and sinking fun
commissioners endless labor and trou
BILE.
The provisions for the payment {
the semi-annual maturities of tn
sinking fund loans entails a compare
lively small yearly outlay on the pai
i Of the city. and under different act
! of the Legislature full provision ha
been made for the refund Of any bond
4 Issued outside OF or through the sink
ing fund should SUCH necessity arise
the city is safely under its legal Dor
rowing capacity Of ten per centum O
its assessed valuation of real' estat,
and the idea of the city Of Whining
ton passing or repudiating any of it
bonded Indebtedness is too ridiculou
to seriously consider.
We do not mean to convey the ide
that the public should not know al
the facts concerning the governmen
Of its civic affairs; it should inform
itself fully and freely. But in so IA
as the sale Of bonds is concerned W
do deprecate the unbusiness lik
method Of conveying to prospectiv
j purchasers of the obligations of on
city corporation Cmest of whom com
from outside our state) the erroneou
impression that the securities are ba
and then asking them to pay the high
est price for them in the open marSe
Very respectfully.
Alfred B. Moore.
Commissioner Of the Sinking Fund.