Evening star., 1948-08-27
Alexandra Sells
Bonds al 2.93%
Interest Rate
$3.50, 900 Issue
Requires Nearly 10
Over First Figures


yesterday sold at interest rates
averaging 293o7 per cent or nearly
per cent higher than the rate
anticipated by the City Council
when the sale was authorized last
spring. b..
Several brokers who attended the
opening of bids yesterday indicated
a lower interest rate might have
been obtained had it not been for
recent criticism Of the city govern
ment by an incoming member of
council, Marshall j. Beverley. The
brokers explained to reporters that
Mr.. Beverleys attacks were indica-
tions of political squabble" within
the city and had discouraged some
brokers from bidding.
Included in the s5,25o000 issue is
s2,933,000 for school buildings and
sites; S584,0O0 for storm and sani
tary sewers: $1,158,000 for street and
bridge improvements; $4,000 for
playground improvements; $220, 900
for acquiring playground and park
facilities: $250000 for a new city
auditorium and gymnasium, and
Sal 900 for new fire fighting equip
ment.
Lower Than Montgomery Rate.
Unless something unforeseen
arises. yesterdays meeting was the
last Of the outgoing nine-member
council. Only three incumbents
will remain in Office after Wednes-
day, when four new councilmen
take office. The new council will
be composed of only seven men, in
line with a recent charter change.
The brokerage syndicate of
Phelps, Fem & Co. and Ferris &
Co. and Associates, consisting of
New York, Richmond and Wash
ington brokers, offered the low bid
which was accepted. This was
slightly lower than the 2.99 per cent
interest rate at which Montgomery
County, Md, sold So ZOO 900 in bonds
last Tuesday.
Some councilmen said they be-
lieved the rate was low in view of
the present tight bond market sit
uation.
Mr.. Beverley, however, declared
the interest rate was a high as
293 per cent because Of the city S |
critical financial condition and bad
financial management" He said he
would call for immediate reorgani-
zation of the city's financial pro-
gram when he takes Office.
Interest Rate Amended.
Although the bond issue ordi-
nance at first was written to permit
only 2 per cent interest, it was
amended last week to permit in
terest as high as 4 per cent.
Mr.. Beverley, who takes office !
with three other new councilmen
next Wednesday, has criticized the
city manager, the health depart
ment, the city shop and the as
SCISSORS Office recently.
Only one dissenting vote was cast
against acceptance of the bid. John
w. Tulloch said he believed such a
large bond issue should have been
put to referendum.
Sale of the bonds brings Alex
andria within 100000 of its s9,233,-
600 bonded limit A Virginia city is
permitted to issue bonds only up to
l6 per cent of the assessed value of
its property
Will Be Paid OFF in 80 Years.
The issue will be paid off over a
period of 3S Years, with the first
payment due in 1850. Interest on
the bonds. however. begins immedi- |
ately. The citys 1850 payment on
the bonds will amount to slightly
more than 900, which repre-
sents more than Az per cent of this |
years total budget of $3,237,00o |
The principal will be paid off at
rate of $4,000 year through 1854, |
and at the rate of S150000 a year
until 1879, and then go up to $780, |
900, with the interest rate becoming
lower each time the principal pay
ment becomes higher.
Despite the amount OF money that
will be required each year to retire
the issue, Col. Everett Hellmuth,
chairman of the Finance Commit
tee, was optimistic about the city's |
financial future. He said that if
properly handled" the financial
position of the city could be the
most advantageous of any city in
Uirniojo