The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-08-05
SINKING FUND BUYS
WHOLE ISSUE OF BONDS
Gunst Ordinance Signed by Mayor
Ainslie Providing 100000
for Streets.
BIDS ASKED ON BROAD STREET
administrative Board Takes Imme.
di"tc Action to Put Proposed I'M
provements Under Contract at the
Earliest Possible Date

The machinery Of municipal govern
ment seized upon the Gunst bond is
sue ordinance yesterday. and with tho
signature of tho Mayor hardly dry on
the document. began the nrst OF the
operations which will result in the cS
penditurc OF 100000 upon tho CITY
strccts-thc largest single sum devoted
10 ms purpose In Richmond's history.
Before the day was over arrange
ments had been completed FOR the alb
sorption OF the 100000 In bonds by
The sinking fund which will take over
the issue ut par. Within few min
utes after tho ordinance received tho
signature OF Mayor Ainslic the Admin
isirative Board entered an order III
rcctinS the city Engineer to advertise
Tor bids for smooth paving Broad
Street from the end of the present
smooth paving At jefferson Street TO
Laurel street. The bids are made re-
turnable on August Il. An appropria-
ton OF $4,000 for this work was the
only special provision In the bond is
sue ordinance.
The arrangement under which the
sinking fund takes over the bond Issue
at par is regarded by the city financiers
as good stroke Of business There
is At present TO tho credit Of the sink
ing fund s3s25.53o49 invested chiefly
In other securities paying on an aver
age OF per cent. Tho fund has a
cash balance of S352.oIoS7 drawing
only the usual interest allowed by
banks on savings.
SINKING FUND CAN
TAKE CARE OF ISSUE
There arc no large issues OF muni-
clpal bonds which tho city will be
called upon 10 retire between now and
1878, when the 100000 bond issue Of
tho Gunst ordinance. natures. The
Idle cash balance VIII he employed in
taking UP the new bond issue as fas,
Us the money is needed by the city
The sinking fund will under this ar
rangemcnt absorb the entire 100000
Issue. which bears interest at 41-2 p1r
cent and natures IN 1924. instead of
maintaining an idle balance drawing
only per cent, or purchasing other
securities drawing only per cent.
II is pointed out. moreover. that in
the present state OF the bond market
the new issue would have sold for con-
ssiderably less than par, The recent
S92l, i9s, and that was regarded good
price. With disturbances at home and
abroad. due to the European war and
the consequent disturbance OF The bond
market, the new issue. i; is believed.
would have sold for even less Its alb
sorption AT par by the sinking fund
available for expenditure. unimpaired.
ORDINANCE Is
LiBEItiLLY DRAWN
j lie ordnance DfoNiuliS IOT inc en- =
pcnditure Of the money Is literally
drawn. Only one restriction is made
that $50. 900 be expended in extending
westward the smooth paving on Broad
Street. Otherwise the money is to be
used upon streets in the corporate
limits. in grading. cuvbinG. guttering.
Sravcling, paving and sidewalk laying
There is nothing in the ordinance to
prevent part OF the appropriation be-
ing applied TO the Improvement OF
streets in territory which may soon be
annexed. III is regarded as extremely
Improbable. however. that any part OF
the proposed new corporate territory
lar bond issue: since It's expenditure
will in all probability be apportioned
before annexation takes effect
Alderman Gunst. who has for wears
championed n bond issue for street Inn
provenents and who secured the pass
age OF the new bond issue ordinance IN
the face of wcll-dcfIHcd opposition, was
warmly congratulated yesterday upon
the success which has crowned his eff
forts While bond Issue for improve
ments not strictly tangible in their
from the established practice of tho
time was widely recognized
WILL PLACE BRONZE
TABLET ON CITY HALL
Mayor Ainslie returned to City Clerk
August yesterday With his signature
tion for. the Preservation of Virginia
Antiquities TO place bronze tablet
! mpon he wall of the City Hall on
s res'h S street h hsar Capto; to mark the
home OF Edmund Randolph. He signed
also the resolution directing the City
M Al, to acduire from the South.
ern hallway Company the land needed
Tor Widening Fourteenth Street from
Cary Street to the Mayo Bridge. The
legally nosx TSh ff he sna to ,ra mass
agreed upon recently by the city and
the railroad company.