Evening journal., 1913-05-09
THE
CITY CREDIT
IS HIS AIM
chamber Of Commerce SeCre-
tary Objects to Bond Being
Sold Below Par
WOULD KEEP RATE
OF INTEREST UNIFORM


In communication TO City Coun-
ell last night. John }. McGoNcrn,
chairman of the sinking fund COM
onission urges that body 10 take such
steps as will assure the sale OF city
bonds hccrafter for st least par and
nhat the rate Of interest on such
bonds be the same as In other cities
and not increased merely to obtain
par bids Mr. McGoyern declared he
would vote against disposing OF any
abonds below their par value
In his communication Mr.. McCioy-
rrn charges that untrue statements
Regarding the financial credit of the
CITY have been made he says, for po-
1ifical effect. and TO east reflections
upon the tax collectors further ag-
rrapates tho situation.
Colonel W. D. Stover, OF tho
Seventh ward. chairman OF the
fnancc committee took exception to
hhis statement He said the charge
that statements concerning the tax
.ofice we're issued for political ef-
Ncct was false so far as the finance
tcommitiee of Council Is concerned.
"Thc committee is prepared he
Naid, ito suhstantiate every statement
M has issued concerning tax colloc-
uions and what was said was not
kdonc for political effect but for the
Eood OF the city
Mr. McGoyern's letter follows.
"From the public press I learn thai
Nd Is proposed In the near future te
lrcquest The Council TO arrange for an
Tissue of AT least 100000 worth o
Ihonds for the new county and munich
nal building. and as chairman of th'
lElnking Fund Commission. assume
THAT may take the liberty Of oherinl
= suggestion.
III seems to mo that some EFFORT
should be made al this time before
lany section of tho bonds proposed tc
We issued for tho completion of the
Building are issued, to have the en-
dire amount so underwritten that the
city will be safeguarded and assured
that they will receive az least par for
tho bonds. If such steps as these arc
not taken II Is only reasonable for uf
20 expect condition to develop which
we have experienced before In this
city. and that rs, while the work Is
going on It will he carried to such
m extent that the contractors viii
have large outstanding obligationl
against the city and the Council viii
be practically compelled to accept the
highest bid that is submitted, regard
less Of whether or not such bids are
below the par value OF the bonds.
s'To aggravate this situation all th'
more, the fact that the total amoun
OF bonds will bring MS so much close
20 the bond limit OF the city that !
will naturally have a depressing ehec
. upon the sale OF the bonds, and this
coupled with the many untrue state
monts regarding the effect and 10 cas-
reflection uDOn the tax collections
further aggravates the situation.
Il desire to be plainly understoo,
In the matter and to at least give ad
vance notice that n It comes within
my province to vote upon any issue o
bonds in the future for the city foi
any purpose that | will do all ! possi
bly, can to reject said bonds II the,
are not equal TO or greater than The
PAR value of the bonds and that
shall also do all in my power to de-
feat any issue Of bonds where the In
tcrcst rate is raised above the usua
rate paid upon municipal bonds fol
the simple purpose OF securing par. 7
fs a peculiar fact at this time tha
uthcr cities are issuing bonds in th'
Same relative position as Wilmington
VI the same or lower rates Of inter
est and they have no difficulty In sell
ing their bonds over tho counter or u
thc open markot'and obtaining par fo
same, and Wilmington should do like
wise
Il sincerely trust that some atep
will be taken in advance that vii
safeguard the interests of the city an'
not Impose a double tax upon th
home owners as has been done hereto
fore by compelling them TO not onl
nay interest upon their obligations
but to pay the amount of discoun
when their bonds arc sold for a
amomt less than ihcir par value
"Nours very truly.
"John j. McGoycrn"