The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-02-21
HIGHER TAX RATE Or
BONO ISSUE NECESSARY
Suggested Increased Rate Would Pc
Lower Than That OF Many Cities
In Richmond's Class.
W. T. BARNEY on CITY'S
FINANCIAL CONDITION
business Manager of Chamber of
Commerce Tells II. II. Y VI. C. \.
Tuesday Club OF Cfty'~ Assets and
Liabilities and Its Needs

"Richmoud's financial and physical
condition does not justify The state
ment: The city is in a financial plight,
and unless the council aaa admins
trative board institute rigid economy.
very substantial increase in tax rate
VIII be the only alternative to en-
ploy asserted Business Manager
" T. Dahney. OF Richmond cham
Der Of commerce in an address, he
fore the Tuesday club OF 1he Railroad
y. ". c. A. The meetin4 vas we'll
attended and so interesting we're the
remarks Of Mr.. Dabney that the club
adopted resolutions calling for giving
them the widest possible publicity
Mr.. Dabney by presenting figures
showing Richmonds assets and liza
bilities, began at the opening OF his
address refutation of the statement
that he AYERS conditions Will not sus-
tain In this manner he summarized
the city's financial situation:
Assets and Liabilities.
Richmond's bonded in
debtedness o.. .....,., $4,000 600
Sinking fund deducted - 100000
Net bonded Indebtedness $4,000 900
Actual assets .... ...... $4,000 900
Actual assets in excess Of
net bonded debt .... 10 000 600
E'neXhausted bond limit in .-..
Guiding sinking fund. 2 500 GOO
Assets, embracing q gas
water and electric plant
represerting actual in
vestment .... ........ >7ae.ooo
Richmond could dispose of these
public utilities with a thlrty-four-
year franchise tthe city at the end Of
this period repurchasing the plants at
appraised valued for sum sufficient
to pay the city's net debt and still
have 100000 assets without a dol
lar of debt
The present operations Of Rich
mond's sinking fund, beginning I'm the
year 1920, will be in position to pay
in full every outstanding bond as fast
as thew mature. a most gratifying and
remarkable situation, a condition. the
like OF which is hardly enjoyed 10y
any large city in this country
The banks in Richmond have such
strong faith IN our city's credit and
ability to pay her obligations. are to-
day competing 10 loan the civ any
amount needed al / per cent interest
A city with such a strong financial
and physical condition. would con-
vince the most critical and intell:eeut
mind that Richmond is in no inan-
cial plight; on the contrary. that her
resources are more imam annie 20
care for her obligations
The city auditor advises that. he
ginning 1917, after providing for the
city's fixed expenditure out of the
estimated revenues for this year, there
will be deficit of about s50G. 600
floating debt, and that our revenues
will not permit the usual apnropria-
ton OF $3.50, 900 annually for street
improvements, which Improvements
are necessary 10 the welfare Of our
people.
Not Due 10 Extravaganza.
This condition OF our city's finances
indicates that for the last two wears
at least the councils appropriations
based on estimated revenues. have ex-
ceeded the receipts. If the council
has wilfully, or through extravagances
caused this condition. the most Sc
we're criticism would be justified but
II Is not the case
The council. in its earnest desire
to respond to the demands OF the
people, for necessary Improvements
ana increased public institutions, oc-