Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1920-01-20

toltA II Tue AT 81 49, LAS AVt
yet expired;
"lbl For the further reason that
the emergency fund is vital 10 the
maintenance of the plant in the
interests Of the health. comfort
and proper material requirements
Of the people OF Annapolis, and for
the security Of the bondholders or
mortgages; is not such balance
o. profits as contemplated by the
Act OF 1912, because no balance,
can be determined until the plant
is paid for; and
tcl. The emergency fund IS held
by the Board of Directors of the
Annapolis Water Company to be
expended. when as necessary in its
judgment under the provisions of
the Act Of 1918, for the develop
ment. maintenance and operations
of the plant as a municipal prop
erty. An emergency fund is an abb
solutely necessary detail Of the
full and ample power for the care
and physical operation of the plant
in the interests OF the health. COM
fort and proper material require
ments of the people of.the City OF
Annapolis 1t may have to be re
sorted 10 al any time. Being 2
specially dedicated funu TO divert
ii to debts otherwise contracted by
the city is beyond the legal power
Of the City Council, and could not
be upheld If the CITY Council by
an order or resolution can take
$4,000 from the emergency fund
they can take all the income from
the Water Company and so impair
the obligation of the city's CON
tract with the holders Of the bond
issue. 10 mature in 1912. as to call
for the Intervention OF he Courts"
Act OF 1912 Quoted
In the aforegoing opinion Coun
selor Rullman refers 10 the Act o
1912 and quotes that part Of the sec
ton having direct bearing on the
present issue. This quotation is
said profits should become a speca
fund 20 pay and discharge the obliga-
lion recognized and authorized under
the Act and maintain said plant, HI
balance 20 he devoted as the Mayor
Counselor and Aldermen may deter
mine In addition to having the OBJ
legation OF maintaining the plant, an,
keeping funds on hand for that pur-
pose in the discretion of the Direc.
tors. as provided by the Act of 1912
the Act of 1918 confirms and widens
this authority and duty and makes the
Directors the responsible body in de
Gliding what is needed with the emer
gency funds OF the company How
ever. Mayor Levy stated today tina
Alderman Parkinson, who offered III,
order to appropriate $4,000 of this
emergency fund. would like to hav
published the entire section of thu
Act Of 1912 bearing on the question
now at issue and this request is ac
cordingly granted The section re
ferred to is as follows:
THAT the Mayor, Counselor and Al
dermen of the City of Annapolis ar
hereby authorized. empowered, direct
ed and required to create a sinking
fund amounting to two thousand on
hundred dollars per annum, to redeem
and retire said bonds at maturity, ant
to pay the interest thereon out of tn
profits ACQUIRING to the said Mayor
Counselor and Aldermen OF the City o
Annapolis on its stock in the Annapo
lis Water Company, and said profit
shall become a special fund to pay an;
discharge the obligations recognizes
and authorized under this Act an
maintain said plant. and the balanc
may be devoted as the Mayor, Counsel
or and Aldermen may determine
which said sinking fund shall b
equally divided and deposited in equa
instruments semi-annually in the An
napolis Banking and Trust Company
of Annapolis, the Farmers NatiOna
Bank. of Annapolis, and the Annapolis
Savings Institution, of Annapolis. upoI
which deposits the said Annapoli
Banking and Trust Company, of Anna
polls, the said Farmers National Bank
of Annapolis. and the Annapolis Saw
ings Institution. of Annapolis, shall al
low interest thereon at the rate of no
less than three and one-half per cent
UNI (3la per cent? per annum from tn
date of such deposits, which interes
shall be added to and form a part @
the sinking fund hereby created"