The Birmingham age-herald., 1916-04-19
MESSAGES TO CLEVELAND

DILLON, THOMSON & CLAY
 MESSAGES TO CLEVELAND T also sent the following telegram to Cleveland, O., where they have a mu- nicipal light plant;
 " Mayor, Cleveland, O..
 Am considering bond ordinance for municipal light plant here and would like following information in regard to your light bonds: Are they serial or with sinking fund provision? If sink ing fund, how much is applied to it annually? Is sinking fund deposit and annual interest chargeable to and de- rived wholly from earnings of the light plant? Kindly reply fully.
 George B. WARD, Mayor Here is the answer to my Clevelan nd query:
 George B. Ward, Mayor, Birming-
 ham:
 Bonded light debt B, 100000. Serial. Sinking fund and interest charged against plant
 "'C. S. METCALF,
 Deputy Director of Finance, Cleve-
 land. O..
 T still reiterate that I am in favor of the light plant" continued MT. Ward and therefore in favor of the ordinance, but while the city is embar rk- ing on this enterprise it should start on the securest and soundest financial basis. I know there is no city that would undertake to take over and oper- ate any utility which would not pay it's own way and take care of itself The cost of the capital and its repayment is just as much an item of expense as the cost of coal or of labor They are all supposed to be paid for out of the earn ings of the plant and not from the funds coming out of general taxation. Therefore my insistence that the ordi- nance contain the proper provisions in- stead of leaving the question open to be handled in any way that future admins trations may see fit under stress of in- adequate funds and indifferent financ. ing"
 BARBER CAUSES LAUGH
 At this point Commissioner Barber got right up in meeting and said:
 eve have no right to assume that we will be succeeded by commissioner with less sense than we have-.'
 MT. Barber could not continue, as the outburst of laughter was such that he could not be heard. He looked bewil- dered for moment or two at his laugh ing colleagues, then it appeared to dawn on him what he had just said, for he la aughingly repeated the remark The conference was then adjourned to the council chamber where after the routine matters had been disposed of the proper financing of the bonds again came under consideration.
 In explanation of his opposition to the suggestion of Commissioner Ward the following statement was read at the open meeting by Commissioner Wealth erly:
 'If a special sinking fund of or fnrf fu yiv <1ff fI,n t1ri,, cipal and interest on these bonds should be required when we come to negotiate the sale of them, it can be provided for just as satisfactorily as now in the deed of trust or mortgage which will be given as security for the bonds. It may not be necessary to be done at all, as the bonds will not only be secured by the general credit of the city, but the general sinking fund, provision which under the law is provided for all our bonds. I think it wise, therefore, to post pone consideration of this new ques- ton until such time as it may be- come necessary for the board to de- eide it.
 BARBER EXPLAINS
 In his opposition to Mr. Wards sug. gesrion, Commissioner Barber said:
 There is no need of needlessly ty- ing ourselves up. We can pay the in terest charges from the general fund In fact we do not have to sell the bonds at all. Or else we can buy then ourselves. Our books now show we have about s5O0,000 in cash in the banks drawing only ? per cent
 You are mistaken" said Commis- soner Ward. in a low tone, in order not to attract the attention of the newspaper men the cash balance o1 the city draws 8 and 4 per cent
 How much at per cent?" said Mir Barber in loud and aggressive tone
 "Oh, about $30,000," replied MT. Ward
 "A niggarly sum-. said MT Barber A few moments later Commissioner Barber sought to get himself right with Mayor Commissioners Ward by calling attention to the fact that d saving of $375.000 was effected through action on the suggestion of the execu- tive of the commission
 This business of repeating and ther voting over again these bond ordi. nances,' said Commissioner Barber graciously bestowing a benign smile at MT. Ward. who puffed unconcern edly at his pipe. is because oul worthy president tat this point Mir Ward shifted uneasily in his chair an. shot a glance of helpless abandon up wards at the beaming MT Barber, wh, kept on orating) made a timely sug.