The commercial. (Union City, Tenn.) 190?-193?, 1919-11-07
Safety First.

Safely 4ASI.
This issue of the paper contains
an article by Mr.. John T. Walker,
reproduced from the News-Banner,
written for the benefit of the tax
payers and property owners of Union
City. Reference is made to the fact
that before the serial system of bonds
was adopted, bonds were issued with
the agreement that sinking fund
be set apart with which to meet the
payment of the principal when it be-
comes due. Now we have been pay
ing the interest, but as Mr.. Walker
says, we have for many years made
no provision for the principal. Mr..
Walker called attention to the fact
when he was Mayor and at once
created sinking fund, but this was
afterwards used for improvements
and has never been renewed. Hence
the old bond issues of $67,500 are
not protected with sinking fund.
do not know whether the issues
since then are automatically re-
tired or not.
The total bonded Indebtedness of
Union City is $11S,000. The floating
debt, including notes and open ac-
counts, against which of course there
are some real estate assets, are run
ming within a reasonable limit, TAX
ing into consideration the markets
and conditions.
Now quite a big bulk of these
bonds is due at one time and should
the cash be demanded, instead of re-
funding the bonds the bondholders
could bring action against the city
for the debt. Then in case we had
no sinking fund a levy would be
made on the city property-first the
public property and if not sufficient
the private property. Now, we may
have some citizens or taxpayers who
do not know that every foot of ground
and improvements within the cor
porate limits stand for this debt or
any other bonded debt which does
not provide for the payment of same.
The provision for this is ma de in
body of the bonds. Your
house and lot is liable for the debt
Hence the point taken by Mr.. Walk
er.
This is not the first time Mr..
Walker has insisted on the creation
Of a sinking fund, and he is, accord
ing to our way of thinking, Offering
some very sound advice.
The Commercial, along this line,
wants to make another point Two
years ago we advocated conserva-
tism in public improvements during
the war as matter of self protec-
ton. The status of city finances Is
practically the same as it was then.
With the rapidly advancing prices
it is fortunate that it is the same.
Now we are really in more unsettled
condition. Prices are still soaring.
The point is, that it behooves us
more than ever to maintain an equili-
brium in city management. There
should be no more debt for public
improvements until the time comes
when labor and values become more
stable. AS striking example of TIE
cost of public improvements, the last
bid received by the State Highway
Commission for public roads in Ten
nessee was $4,000 mile. That was
a few months ago. 1t is doubtful
now whether the labor and material
for road building could be procured
at all at any price.
So we say and firmly believe that
the city would be making a very
dangerous experiment to branch out
in new campaign of city improve
ments. 1t makes no difference who
10 elected Mayor the same policy
should be observed. We can wei
afford to lay low until the storm
sweeps over. 1t may not be long
It may be for year or more, mayb,
several years, but it would be pub
lie calamity to everlastingly involve
the city and the taxpayers with tn,
present insecurity and uncertaint!
of conditions.
4.