Evening journal., 1915-02-15
Farmers Bank, Because
of Newly Discovered
Old Law, BaIks at Levy
Court Loans
NOT ENOUGH REVENUE
TO MEET DEMANDS

Examination of county officials |
who could throw light on the fnan-
cial condition Of New Castle county |
was finished by Speaker Charles H. !
Grantland, Representative George A. |
Hill and Representative Samuel F.
Elliott a committee representing the
House of Representatives of the
Delaware Legislature, on Saturday
afternoon. The committee will have
a thorough examination of the coun-
TVS finances by Charles II. Simmons,
of Pennington, an expert account
ant who is now auditing the books
of the various State departments at
Dover in order to submit a report
to the Legislature. as is customary
biennially. Information obtained by
the investigation committee, supple
mented by what Mr. Simmons dis
covers. will form the basis of the
committees report to the Legislature.
Because of the many bills introduced
in the Legislature for New Castle
county to issue bonds for a new
Washington street bridge, for build
ing roads, etc, and also to increase
salaries OF some county deputies and
clerks. the House decided It would be
best to inquire into the county's finan-
cial condition before acting on the
measures to increase the county's f.
nancial burdens.
AS a result of the hearings on Sat-
urday II Is believed the legislative
committee will recommend that no
bills be passed to increase the ex-
pense or Indebtedness for the county
at this session. except some measure
to lift the county out of its present
condition in order that il can start
each fiscal year with a clean finan-
cial slate.
Judging from information ELECTED. it
will be necessary for the county to
issue refunding bonds and temporary
certificates of Indebtedness bonding to
about 100000, to clear up all the in
debtedness and to run 1t to October Is,
when the new years taxes begin TO
pour In and it also will be necessary
to increase the tax rate possibly from
so TO 40 cents on the 800 to provide
1.-THE funds necessary to meet the de-
mands of the county, which have been
growing annually becaue of the
/ building of roads, bridges. the pur-
chase and Transforming of toll turn
pixies into free roads, the erection Of
the new city and county building,
maintenance Of highways, etc.
With the growing and unanticipated
expenditures increasing. the Levy
Court had reduced the tax rate, which
cut off revenue that it turned out,
really was needed Therefore. it is
expected that the Levy Court for the
next fiscal year, which begins July l,
will set a higher tax rate, and the
Legilature will recommend that the
county borrow somewhere about $780,
OOO to clear up all It's growing charges
The situation appears more serious
than It really is because of the fiscal
year beginning July and the county
taxes not being paid until Octobef
because of the rebate schedule. the
county has been carrying an over
draft of $4,000 from year to year fol
several years, and aside from that II
has to borrow to meet its expenses
from July TO October, until the taxes
begin to pour in.
The city's taxes are payable durini
July and August, and the county re
bates are fixed so that Nilmingtonian
will not he subjected to the hardship
# paving city and county taxes in Tn
same months in order to get the mos
generous rebate. While this benefits vii
mington taNables, it really handicap
the Levy Court.
Loans to carry overdrafts and TO tld
over from July 10 October have been ot
tanned annually from the Farmers Bans
Sometimes these loans have been a
high as $4,000. it was brought out Sal
b urdav. Recently, however, somebod
pointed out 20 the bank directors a
lold statute that prohibits the count
; borrowing more than $4,000 from tt
Farmers Bank. from which institutio
its loans must be obtained, according
! law. because it is the States bank Wit
- the emergency money supply for n
. Lew Court cut off. nothing remains bt
| to issue bonds or temporary certificate
/ of indebtedness to take care of the owe
4 drafts and deficits, not merely until q
end of the fiscal year. June 30. hut
q October Is, when taxes begin to po'
- into the county treasury,
e With the Issuance of these honl
n and certificates of Indebtedness
e place the county firmly upon its fnal
e cial feet, action may be taken to chan
:. the start of the fiscal year to Septemb'
or October, in order to avoid the co
lict in payment of city and count
le taxes by Wilmingtonians desirous
ID taking their tax rebates
2, Aside from that, the Legislature all
j. may pass a law making it a criminal O
y fense for State or county officials
;. charge OF the expenditures of publ
n, moneys to eNpend more than the budg
Il, estimates for each item or appropri
=, tious as originally scheduled, exceptiI
{, in cases of emergency.
IN In July SGS.000 worth of honds b
/; come due and it is altogether likely tn
C. a new bond issue 10 refund those bon
n. will be recommended with a furth
he Recommendation that about Sl25,O00
r. borrowed or temporary certificates
30 indebtedness be paid back in insta
ments during the next two years.
At the morning session on Satui
day. BENJAMIN A. Groves, chairma