The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-07-03
The City's Finances
Mayor Jennings Gives Official
Figures and DenOunces False
Statements


| bankruptcy. Whoever started and is
circulating this report is either woe
fully ignorant of the financial status
OF the City, or is wlfuly falsifying
about the finances with some sinister
and ulteriOr motive in view. What
this. motive is / dc not understand,
but whoever is responsible for this
report, if he had had the interest of
the City at heart, at least should
have taken the time to make proper
investigation before circulating SUCH
rumor. Not having taken the trou-
Die TO find out the true status, then
no other conclusion can be reached
than that the report was circulated
either because this party desired to
do the city harm, or wanted to dis
credit the, present administration, and
used this indirect m. ,hOd to do so by
circulating falsehoods i'm an under
hand manner. not having manhood
enough TO come out i'm the open and
make such statements
l will give below the present finan-
cial status. and let the people judge
whether there is any foundation what
ever to such reports.'
The City was authorized to sell
! $35O.000 of bonds for the purpose of
buying the electric light and ice plant
and improving the same We have
bargained to sell $4,000 of these
bonds. and they are now being print
ed to be delivered. We still have
$24J 900 worth Of the bonds un
sold. We may sell them in the next
| ten days or it may be two or three
months as the bond market is quite
low at present on account OF the
present financial stringency through
out the country.
We have spent up to date for the
electric light and ice plant, including
the improvements, $326,4O729. We
nave borrowed from the banks and
fire insurance companies $311,5O in
anticipation of the sale of these
bonds. Therefore, it will be seen
that we have spent $14,9O7.29 more
on the plant than we have actually
borrowed. If the bonds were sold
today we could pay al the money
which the City owes, which was bor-
rowed In anticipation of the sale of
these bonds, and have left $500
which would carry this enterprise
at least until the first OF August
without borrowing a single dollar.
Out OF the money borrowed wei
have on hand $4,I69.66, and we have
expended $14,9O7.29 more on the
plant than we borrowed. Add this,
to the $4,16966 money in hand,
makes total of $19,O7695, which we
have saved out of the current income
to be used in, these permanent inn
provements.
Does this look like bankruptcy?
We have paid all bills that have
become due, except $12,125.42, which
has just recently become due, and we
have on hand $4,16966 with which
to pay them. and will borrow enough
money to pay the balance and all
other bills as they become due until
the bonds are sold.
City council could not foresee that
the money market would become such
that it's. bonds could not be disposed
of at par. We have never sold any
city bonds for less than par, and we
could have sold these bonds when they
were first issued ii we had fixed the
rate at 1-2 per cent, but council
hoped to dispose of them at par and
only pay s per cent, not knowing
that the money market was going
TO become so tight. Since it has be-
come so tight, we have not been able
to dispose of these bonds. except at a
sacrifice, which we have refused to
do.
The County of Sumter, recently of
fered 100000 of it's bonds for sale,
and the highest bid we had was SC.54,
or for 100000 worth of bonds the
highest bid we had was S4O2,700. Or
course the Board rejected all the bids
only mention this so that the peo-
pie will understand the reason why
the city has not disposed of it's bonds.
Had the bonds been disposed Of, today
the city would not owe any bank a
single dollar. and would have i'm its
treasury $42,66t.6S. which would
carry its operations on at least until
the first Of August, and then it would
not be necessary to borrow more than
$4,000 or $75,OOO.OO To carry on the
work until taxes come i'm.
Yet / hear it being circulated gen
orally that the City of Sumter is on
the verge Of bankruptcy. Who would
circulate such report as this if they
knew the financial status? Who, il
he had the City's interest at heart,
would circulate such report without
first having asccrtained the financial
condition? No one, except one who
either wanted to injure the City or
discredit the management Of the pres
ent administration of the City's af-
fairs.
AS Il member of City council am
glad Tor the people to know the OK
act status OF the City's finances, and
for that reason | have written this.
am more than willing for the people
to pass on the policies being pursued
by present city administration in the
conduct of it's affairs, but | do de-