Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-02-21
THE DEBT OF SACRAMENTO.
Letter from Judge H. @. Beatty on that
Subject

sion, l will make some suggestions as TO the
debt of Sacramento city. The bonds which
are called Sacramento funded debt bonds,
were issued under two Acts of the Legisla-
ture. The first Act was approved April a.
1858, which provided for the issuance OF city
bonds to the amount of 81, 600 900. The
real amount of these bonds was not issued
within the time limited in the Act. The Sec
ond Act extended the time within which these
bonds might be issued. The first Act, under
which the largest portion OF these bonds
were issued, contained provisions for consoh
dating the city and county governments.
Section 80 of this first Act contains this pro-
vision: 1.-The revenue derived from and
WITHIN the city limits for municipal purposes,
viz Taxes licenses, harbor dues, water
rents and fines collected in the Mayors
Court or otherwise, when paid into the treas
ury, shall be set apart and appropriated aS
follows: Fifty five per cent. to an interest
and sinking fund. which should be applied
20 the payment of the annual interest and the
final redemption Of bonds issued for city in
dehtedness, in ACCORDANCE with the pro-
visions of this Act" The other forty five per
cent is distributed among the various city
funds, such as school fund, salary fund, etc.
the city authorities shall levy tax OF 100
cents on the 800 per annum for municipal
purposes. The Courts have decided time
and again, that when an Act OF this kind Is
passed by Legislature, and the creditors OF
a corporation fund their debts Hereunder,
the Act Of the Legislature becomes part OF
the contract, and no State Legislature
can repeal the Act or so modifyit as to lessen
the security OF the creditor. In othsr
words, the Act, so far as it Is a
protection for the creditors remains
by tie Legislature That being the
case every creditor OF the city of Sacramento
mas two remedies against the city, which no
Court or Judge having jurisdiction OF the
case would hesitate for a moment to enforce.
These are the remedies First If the Trus-
tees refuse or fail to levy the taxes they are
by law required to levy, they can be COM
PEELED to make the levy; and this very
promptly, for there would be no evidence IN
the case. The Court would only have to read
the law and pronounce the Judgment.
hardly think any respectable lawyer would
make himself ridiculous by attempting an ar
gument against so plain proposition. Sec
Ondly the Treasurer of the city can be COM
PEELED by mandamus to set apart % per cent.
of all money coming into the treasury tor the
payment of interest on city bonds, subject,
perhaps. to these exceptions He may not be
compelled to set apart more than 30 per
cent. of one per cent. of the property tax. or
more than 219 per cent. OF the water rents
| say the Treasurer may not be competed to
set apart from the property tax more than
55-100 of one per cent. But this think, Is
doubtful. The Act very clearly express5st the
idea that 80 100 of all revenue coming into
the treasury shall be set apart for interest.
It is true that at that time it was not eX-
pected chat more than one per cent. would
come into the treasury. But if more should
come in afterwards, it looks 60 Inc very much
as if this clause would carry $1,000 of the
whole. If this view is right, as the Treas
urer receives two per cent. into the treasury,
he might be compelled to pay over 90 per
cent. of the whole, or say 81 10, out OF the
city money for interest purposes.
There are some persons who claim that the
holders of the city bonds are only entitled to
30 per cent. of the net revenue of the water
works. If that were SO then the Treasurer
would be compelled to set apart only 27d per
cent of the gross receipts OF the water works
instead of - per cent: but can see no war
rant for such d conclusion in the Act OF 1895,
and no future Act could diminish the re-
sources OF the creditors.
If the Trustees refuse to carry out their
agreement of last December | am very sure
proceedings by mandamus will very soon fol-
low Now let us see what the city may gain
and what she may lose in the event Of such
litigation. 1t is admitted by the opponents
of the tax they agreed to raise that she may
be compelled by mandaInus to raise 80 per
cent. of one per cent. All they contend for
is that the case may be delayed and kept tied
up in the Courts until possibly it may be too
late to levy the tax tlis year. On the other
hand there may be no delay at all, and the
Treasurer may be compelled to pay over
81 10 on the 800 instead Of % cents. In re-
gard to the water works revenue 1t Is only
difference between 2T3 per cent. and % per
cent. of the revenue If they 90 to law they
only contend that the payment from the
water works should be 27b per cent. By the
compromise it was to be 45 per cent, and If
they call on the Court to settle it they will
probably have to pay 30 per cent. Besides
this the city would be put 20 heavy costs for
attorneys fees, etc, in contesting the matter.
About a year ago one suit by mandamus was
brought against the city by a party holding
bonds to the amount of 900 or 81, 600, and
if we are to judge by the results in that case
what it would cost the city in the way of law
yer's fees and other things paid to stave that
one off, if the city were sued on all its bonds
the cost of staving off for one year would be
greater than the whole amount Of bonds out
standing.
In regard to the Memphis decision there is
great deal of talk by people who do not I'M
derstand anything about it. But it does not
conflict with the views laid down here. l
may notice that decision Ia another communi-
cation. ii. y. BEATTY.
METROPOLITAN THEATER The Hooley-
Morton Homer Minstrel Troupe had the
largest audiences Saturday afternoon and
evening ever drawn here by a minstrel COM
pany. Last evening it played to a good
house. It leaves fer San Francisco this
morning. Its season here was phenomenal
one for its success. The company will re-
turn here early in the spring. Announce
ment is made this morning Of the engagement
for eight nights, commencing Friday evening
of this week, of the Emelie Melville English
Opera Company, Charles b. Locke proprie-
tor, Max Freeman director, and d. J. Sim
mons lessee. This company includes, besides
Miss Melville and Max Freeman, Helene
! Dungeon, Lille Post, Gretchen Hirsch, Frank
| Marian, Masilda Yaleriga and about thirty
/ others. A picked orchestra, under Professor
| D0rman, will accompany the troupe. The
| operas to be presented will he in this
order: " The Royal MILDLY" "Chimes of
/ Normandy, The Pirates of Penzance, "
Madame Favart, " Nisids. - * Boccaccio ;"
and The Bohemian Girl" The scenery
will largely be new to the Metropolitan stage,
| being brought from the Bush-street Theater,
! San Francisco, and will be adapted to the
local stage. This is certainly necessary tor
"Ihe Chimes of Normandy" an opera Of
exceeding beauty, and for The Royal Mid
| dy. in which thirty two masters and misses
! appear in q living game OF chess. Max Free
man. under whom the entire stage direction
will be. is now in the city drilling the little
ones for this piece, while Charles Schultz is
] also here making all the necessary business
| ARRANGEMENTS. This company has been play
! ing in San Francisco almost continuously
/ for two years. IL is reasonable to expec-,
from all the hustle of arrangement being
made, that the engagement viii be 8 notable
one, and that the theater going public will
| be favored with an exceedingly enjoy
| able season. The financial risk of such a
company for such period is undoubtedly
great and probably accounts for the fact that