The Birmingham age-herald., 1915-01-23
BLACKBURN CLAIMS
 THERE IS DEFICIT Gives Conclusions on Sink
 ing Fund Situation DATA FROM WARD
Claims Money Has Not Been Added to Sinking Fund and Inter- est Account According
 to Law

Felix E. Blackburn yesterday sub mitted a statement giving the conclu- sions he has formed from an investi- gation of the city's sinking fund. He writes as follows:
 "In Investigating the interest and sinking fund created by constitutional amendment providing for an increase in the tax rate of mills, it is well 10 consider the history and wording of the legislation establishing same. The constitutional amendment by which Birmingham was authorized to levy and collect an additional mills tax was passed at the session of the legisla- ture of 1s96-97 (general aets page 1202) and was voted upon and ratified at the general election of 1893 The amendment contains this language:
 Such special tax to be applied eX- clusively to the payment of interest on the bonds of said city of Birniing ham heretofore issued by said city in pursuance of law, and for a snllin g fund to pay off said bonds at the ma turity thereof 4t,4L
 This amendment was brought for ward and written into the constitution of 1901, section PIG, in this, language
 Provided, further that this sec ton shall not apply to the cities of Birmingham, Huntsville and Besscmer and the town of Andalusia, which cities and towns may levy and collect a tax not to exceed one-half of one per cent in addition to the tax of one-half of one per cent as hereinbefore allowed to be levied and collected, such special tax to be applied exclusively to the payment of interest on the bonds of said cities of Birmingham, Huntsville and Bessemer and the town of Anda- lusia, respectfully. heretofore issued in pursuance of law or now authorized to be issued and for sinking fund to pay off said bonds at the maturity thereof
 Tt will thus be noted that the money arising from this increase in the tax rate is constituted and made a trust fund to be used for the exclusive pur- pose of paying interest on bonds issued or outstanding prior to 1901, and to constitute a sinking fund for the pay ment of bonds which were issued or were authorized to oe issued in pur- suance of law and which were outstand- ing at the time of the adoption of the new constitution of 1901.
 Upon request the president of the board of commissioners furnished me with full lists and tables showing the total bonded indebtedness of the city, the interest accounts and receipts to the credit of the sinking fund from 1899 to and including 1914. According to these lists the sinking fund now has to it's credit as fOllOws-
 Cash in First National bank. s 3S,192.S6 6 Cash in Birmingham Trust
 and Savings company ..... 125, ,594. 3j Cash in Bank of Ensley .... o,I9S. J5
 s225, 50 Invested in city bonos .... 6,530.0 Advanced to Woodlawn
 street improvement fund.- 3470O. .OC
 ----------- Total cash and assets . S267,169. so
 At the time of the adoption of the constitution of 1901 there were no bonds authorized which had not been issued, but at that time. 1901 the out- standing general city bonds accordinr z to the table furnished me. amornted to $2,12i,000 bearing interest at 1he fol- lowing rates:
 65,000.00 at : per cent. $ 4,550. co 1,1s0,oo0o0 at per cent.. Fl, 400. 0J
 S69.000.00 at per cent. . 4S,450. DO Total amount interest per
 ahhum ......+......... $l19. lUD.10 This amount for 15 years is s1, ,791 ,000. 99 Add to which the bonded indebtedness ............ 2,12i, ,0U0. % Making total for which as
 sessment was made ..... S3915 OOO 90
 The list furnished me shows the total amount collected on the 5-mill increase from 1899 to 1914 to be $2S11. .S2O .D.
 Assuming that no money has been Withdrawn from the sinking fund for any purpose other than that expressly set out in the constitution, and assuming that all interest on bonds outstanding at the time of the adoption of the constitution of 1901. to-wit s1791, ,O0O, has been paid and deducting this amount from the total amount collected to the credit of the sink Ing fund from the date of its creation up to the year 1914, to-wit. $2,Sl1 ,S20. .9S, there should be balance in the sinking fund of $l,020, ,s20.9S, whereas the state ment furnished me shows a balance in said fund in cash and assets of fonly