The Wilmington morning star., 1945-06-20

erence as to whether they desire.
ca to incur such a financial bur.
den.
IN MS letter to Mr., Causey. the
lily manager said lit is not clear
whether the public is being bene.
lifted by the statements nor. in
tact, after the charge to the iurv
by the judge, as to why the state
ments should have been made at
aH...that property-owners on both
the north and south sides of the
Guy are permitted payments on
the same basis on a deferred plan
extending over period of two
years
he further stated that the city
IS not making any money out OF
the sidewalk work in the hand
ing OF its finances that the
program has been determined by
the representatives elected by the
voters OF this city and that the
program is for the benefit, safety
and welfare of the community
and that so far it appears the ma.
]orlty OF the people of the COM
munlty agree with this opinion. Z"
mr.. Nichols letter in full, is as
follows:
There came to my desk the lat
ter part of last week a report of
the grand jury for the June term
l945 signed by you as assistant
foreman and by N. J. Kelly as
secretary. In this report the grand
jury makes certain statements
for the benefit of the public" re.
1atlng to the sidewalk paving that
IS being done by the city.
1T is not clear whether the pub
lie is being benefited by the state
ments nor, in fact. after the charge
to the jury of the judge, as to why
the statements should have been
made at all. At least, we are sur
prised that statements should be
made without the formal appear.
ance of some city official before
your body as whole so that all
OF the facts could be ascertained.
explored and properly evaluated.
We are unable to find that anv
one familiar with this program
and the facts about it has been
called before your body, but we do
find that one employee in his Of
flee answered some questions of
one member of the grand jury re-
lative to this program.
TO take up the statements that
have been made-in the first place,
neither tho program on the north
side of the city nor on the south
permits payments on ten year in
stallment basis. Both are exactly
on the same basis; that is, two
wears. The persons who is billed
for the work that is done has 80
days in which to make payment
without interest being charged. o.
if such person does not happen to
have that much money immediate
ly available he can borrow it and
so take advantage of any low in
terest rates. However, if the prop
erty owner elects to pay on a de-
fe-red payment basis it is quite
true that interest is charged by
the City at the rate of 6 per cent
although we nave not yet figured
out how this results.in a bonus to
it. If the City went into the market
to borrow money it is very prob
ableS that it could do so on the
basis of l ID or 2 per cent interest
rate, but we hope no one will be-
lieve that that is the only expenNe
to the City in borrowing money.
1t is necessary to spend money to
have an election, to have a legal
opinion of recognized bond attor-
neys, to have the bonds printed, to
have the bond sale advertised, to
have the bonds sold, and when one
gets thru, especially on a small
bond issue, the expenses would
not justify one in saying that the
cost of the money was merely
the coupon rate as shown on the
bond. From another standpoint,
even if we assumed that there
might be spread of 4 per cent
between what the City pays for the
money and what it receives. this
does not take care Of the expenses
that develop in connection with the
handling of an installment account
running for two years including