Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1911-07-14
SHOULD GET
PREMIUM, TOO
City Solicitor Hastings Says
Departments Should Have
all the Bond Proceeds
NO PARK MONEY
FOR OUTSIDE LAND

lily SOlClJOr Ddnlel -. hd6tlnBss /
who had been asked by Council for an
opinion on several questions relating
to the premium on the park loan and
the proper expenditure of the fund.
presented an opinion to Council last
night holding that the money
should not be divided, but all
Of it, including the premium, be
used for the purpose intend
ed in the act of the Legislature lie
considered the transfer of the pre-
MUM money to the incidental and mis-
cellaneous account an illegal act and
an equal amount should be transferred
to the park fund. He also contended
that it was a plain violation of the act
to pay for land outside the city out of
this fund. He also recommended that
the money so expended should be-
transferred to the park loan fund. The
land in question is that portion of the
ground outside the city limits which
was purchased by the City Council
from Peter ]. Ford.
Mr. Downs moved that the commu-
nication be received, recorded, and
filed.
Mr.. Kane, Of the Fourth ward, said
he did not object to recording the
opinion, but thought it was uncalled
for and he failed to see the wisdom of
calling for another opinion when Coun-
Gil acted on the last city solicitors
opinion, which was exactly opposite
Mr.. Hastings opinion
Mr.. Kane voted no on the motion.
City Solicitor Hastings, in the
course of his opinion, said:
Il will give you my opinion on the
questions asked in the order in which
they we're submitted, as follows.
"1st. The 100000 bond issue for
park and playground land purchase
and improvement purposes was au-
thorized by an act of the Legislature
approved April Is, 1911. The Council,
under and by the authority given it
} by the last mentioned act, passed ordi-
J ance authorizing the borrowing Of
, the 100000 for public parks for the
! use OF the citizens of Wilmington.
THE said ordinance provides that The
proceeds Of such sale shall be re-
, ceiyed BY the City Treasurer. and the
{ amount of the same shall be by him
{ made the subject of a special deposit
/. in such bank at Wilmington as shall
F. be the depository of the funds of che
city, and shall be drawn therefrOm
= only upon the proper warrant Of The
s Council for the purpose expressed In
D this ordnance l don't see how any
distinction can be made between the
r amount of the bonds and the premium
. on the bonds in applying the proceeds
{ under this ordinance. The ordinance
Y provides that the finance committee
$ and the commissioners of the Sinking
4 Fund shall sell and dispose of the
a bonds to the highest and best bidder
T This is the usual way of borrowing
1 money for the city, and | cannot con-
d ceive of any possible reason, when the
bonds sell above par, to apply the
amount Of the bonds to the purposes
intended by the Act of the Legisla-
ture and by the ordinance and apply
ing the premium on the bonds tc
. whatever purpose The Council may
desire. The legislative act and the
! ordinance passed under its authority
intend that the money shall be bor
| rowed for the purpose mentioned
I therein and for none other. ! am very
clear that the funds should not be di
vided. but that the whole amount re-
ceived from the sale of the bonds
should be applied and expended in the
purchase or acquisition of park ol
playground lots and in the improve
p ment of the parks and Fairgrounds o.
q the city of Wilmington"
4 End When the premium on thes'
\ bonds was deducted from the tota
Z amount of the bonds and merged int
the general funds of the city 1t wal
I in my opinion, illegally done, and
4 transfer of an equal amount should ~
! Immediately made to the special de
posit provided for in the ordinance
authorizing the loan of 100000. Il
other words an equal amount should
= be transferred to the fund created b.
! the sale Of these bonds.
3rd. The Act authorizing this bon'
issue provides that "any park o.
> playground purchased with the monel
e hereby authorized 10 be borrowed
: shall be located within the corporate
K limits of the city Of Wilmington"
understand from your inquiry that tn
2, general funds of the city have beei
it paid for park or playground land out
S side of the city limits and you wan
n TO know whether the money received
e from this bond issue can be used T.
reimburse the general funds Of tn
city. In my opinion It cannot be done
The plain provision of this act of tn
Legislature is that the city is author
N lied to borrow money for the purchas
u and improvement Of parks and play
grounds within the city limits bu
there is no authority in the act 70 pur
= chase such lands outside Of the cit
, and it would be a plain violation o
y the intent If this act to pay for IN
n land situated outside Of the city on
; of the general funds and then roim
o burse such general funds from tn
e proceeds of this bond issue
9 4th. understand by your fourtl
+ question that portion of the proceed
0 of the sale of the bonds has been use
a TO reimburse the general funds of tn
Q city that had been paid for park o
e playground lands outside of the cit
s limits Being Of the opinion that thi
e was improperly done, am also Of tn
n opinion that a transfer of an equa
amount should be made to the fun
created by the sale Of the said bonds
go ~rnnrnc rrrrrnC rrrnn nxrr.,