The daily Argus. (Rock Island, Ill.) 1873-1877, 1877-02-01
What Ex-nfayor Davenport thinks
about the City Debt, Bonds, Etc,

about the City Debt, Bonds, Etc,
Yestesday a reporter for. this paper, on
his way to dinner, dropped in at the Peo-
pies National Bank, on an errand, and
found Hon. Bailey Davenport, the presi-
dent of the bank, busy at his table.
After transacting his business and as
he was about to leave, MIR. Davenport
remarked that he did not think the Union
treated him quite fairly in not giving his
reasons for vetoing the $4,000 tax:voted in
1875 for fluid to pay water bonds.
Reporter. What was the reason you,i
gave?
Mr.. Davenport. was that the tax
would have been illegal We are re-
stricted by state law, passed since the
adoption of our new constitution, to per
cent as the utmost limit of municipal tax
alton, and to have levied the $4,000 would
have required reduction in some other
| levy, or else it would have been illegal.
| You will find the law 10 our new ordinance
book The reporter looked it up. 1t is
on page l2l. at 90, in relation to municipal
taxes, and reads that THE aggregate
amount of municipal taxes levied for any
year shall not exceed the rate of per cent
upon the aggregate assessed valuation OF
| all property assessed. "
| Reporter. you were not opposed
to raising fund for the payment OF the
water bonds?
Mr.. Davenport. no,-whatever may
be peoples opinions about the illegality OF
i the second assessment made for the pur-
pose of raising it to figure which would
apparently allow the issue of the bonds,
they must be regarded as legal until 9th
eIwise decided by the courts-and it isn't
probable that any man or association OF
men will carry the question there; at
least | have no such intention. L suppose
the bonds must be paid We have had
the money and used 1t. No matter what
people may say OF its injudicious expendl-
ture, that can be no bar to its payment,
and we ought to raise portion OF 1T every
year. But we had the bursted water
pipes to renew the year | vetoed that
$4,000, and the trenches to sink below
frost, and we absolutely needed every
dollar of taxes we could levy, and more
too, for that purpose, | did not see how
we could cut down any Of the other levies.
4 and therefore | must veto the $4,000 as it
exceeded the lawful limit of taxation.
The Union ought to have given my reason
for that action. | thought it a proper act,
and one required by my oath, End by the
eXlgencies OF that year.
Reporter. What do you think of the
tax levy for this year?
| Mr. DdUenp0r t,-lt is too small-only
$42, 900, and | notice that it makes no levy
for tax to help pay the water bonds. Ii
the neglect was censurable In 1875, it is
double so now. The aggregate levy should
have been at least $4,000 larger than it
is. I fear that the next administration
will be seriously embarrassed to get
through the year, unless extraordinary
care is used In making appropriations.
RepOrter-There seems to be difference
of opinion in the council in regard to the
proposition to fund the floating debt-as to
the kind of bonds which should be issued.
, What do you think of the matter?
Mr.. Davenport Our debt is constantly
increasing, and unless we begin to pay a
little of it every year it will cause good
deal of trouble, before long, By economy
: in other departments we could easily re-
duce it $4,000 year, besides paying in
terest required-and this we ought to do.
| have read, with good deal OF interest.
the articles in THE ARGUS on the subject
of these bonds, and fully agree that what
are called domestic bonds" are the only
bonds our council should ever authorize,
. in the future, if any are to be issued.
: By providing that per cent of the prin-
p cipal shall thus be paid annually, we COM
ply with the constitution and arc also safe
from any risk of loss of the money after il
: is collected.
= Reporter-Then you have no doubt
about the legality of the bonds, if issued
, Mr.. DdUenp0rt.- | have my doubts
= about the legality of issuing any new
r bonds for this floating debt,-but that il
y a matter for the courts to decide, if any
Y body carries the question there-l do not
care enough about it to do it. | dom
think I would like to sign the bonds, a:
y mayor, if ordered by the council to do so
y | remember that case of this sort occurr
e ed some years ago in Keokuk, and the
bonds were sold (only $4,000 10 New
York The Keokuk council did not pro
vide for their payment, and the mayor
and two aldermen we're caught
in New York and sent to the Tombs auc
It kept there until they raised the money
= The mayor would be personally liable fo
doing an illegal act. He can only bind th'
( people when he acts within the law
e RepOrter-I notice that some citizen
: are 10 favor of putting off any payment 0
+ of principal. leaving it for postcrity t,
; pay.
/ Mr. Davenport, This is wrong, anc
K would be an injury to the prosperity of tn
% city We should never issue any nor,
= bonds of any sort or for any purpose, unles
they provide fer the payment of pc
g cent of the principal annually, to be in
/ cluded in the interest coupon. Even a
u that rate the child is not corn who woult
probably ever see the city wholly clear 0
debt, But we should levy taxes enough
}. within the limit of the law, to pay some