The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1917-10-17
He
GOT CITY
IN SHAPE
When SmaIey Came In Office
Hammond Had $1,000
In Treasury.

When John D. Smalley first assumed
control OF the finances of the City OF
Hammond. his immediate duty was to
ascertain the true condition of its
finances. together with its assets and
liabilities. 1t was a difficult task 70
perform. because no record of any
consequence had ever been kept Of the
transactions Of the city. He was. how
ever. able to find from tho records
and from an investigation OF the treas
urer's office that there was on hand
in the treasury OF the city the sum
OF SI.06s31 That there were outstand-
ing bonds amounting TO s121, 1850.
and that the amount OF the bonded
Indebtedness of the city at that time
exceeded the two per cent constitu-
tional limit by S1s.7S6oo- In other
words, the city had issued bonds in
an amount exceeding s1S, 200 in excess
Of what it could lawfully issue How
the administration preceding that time
had been able to secure money upon
the sale of bonds IN excess. of the
limit placed upon cities by the consti-
tuition. has never as yet been fully
understood, but It nevertheless remains
fact. as shown by the records of
the city at that time. All OF these
bonds were drawing interest at the
rate Of per cent per annum. He like
wise found that judgments had been
recovered against the City of Ham
mond in excess Of SOS. 100000 and that
these were likewise drawing interest
at rate of six per cent That In
edition to these amounts there were
outstanding against the city unpaid
warrants issued before that time.
slightly in excess of s2s.0o0.00. ana
| these city warrants which had been
stamped no funds" with which to nav
them, by the treasurer, were Iikevviae
drawing six per cent interest The
city was consequently laborinE under
a burden of indebtedness amounting
to s245, 10000. all of which was draw
| ing interest at the rate Of six per cent.
and there was on hand In the CITY
treasury from which to pay that
amount the sum of s1,0s6.31. The
credit Of the city had been wholly
destroyed. 1t was in fact a bankrupt
concern. and had no money with which
to meet its obligations The problem
then was: What could be done TO
remedy this condition and place the
city on a sound financial basis7 Steps
were Immediately taken to pay off
the judgments and outstanding war
/ AdtANos anu IHuGCE the DOnQ6Q 1nd6DfeQ-
ness Of the city as far as possible How
/ fully that was accomplished is demon
strated by the fact that at this time
| there is not one dollar in judgments
outstanding against the city. No un-
paid warrants are in circulation or
held by any person. but every war
rant issued by the City Of Hammond
/ is paid in cash upon presentation to
! the frea n Of he
Institutions OF this or any other city.
/ Refunding bonds were issued, drawing
"a per cent interest to take care of
the bonds that were then outstanding,
drawing interest at the rate of elk
per cent There was not at that time
an obligation against the city but
was drawing six per cent interest
Today the city has no obligation
drawing more than AZ per cent in
| terest. and its standing in the busf-
ness and financial world is perhaps
superior to that OF any other city in
the State Of Indiana. Although the
/ city at that time had a bonded in
debtedness in excess of the limit pre-
scrlbed by the constitution today.
should an emergency arise. It can
issue bonds to the amount Of ss3. 0do 90
and still be within the limit provided
/ Oy law 4nstead or Sl.066 in the treas
ury as was shown by the first report
of John D. Smalley as controller, there
was. on the first day of October. 1917
net balance in the treasury OF the
/ City of Hammond amounting to some
thing over ss6,000. The records ara
complete and well kept. Any taxpayer
: can readily ascertain these facts from
the records kept on file in the city
nan 1t demonstrates ability on the
part OF the present mayer to properly
manage and control the financial and
business affairs Of the city and surely
entities him to the vote Of every ta~.
payer that has an interest In the
! future welfare and prosperity OF the
city.
| Enlist In The Wnrnan.r H.