Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-04-26
THE CITY BONDS = THE TRUSTEES
SPECIAL MEETING.

| Yesterday morning the meeting OF CITIZENS
with the members of the Board of City Trus-
tees, called by the latter for the purpose Of
considering the question Of refunding the
CITY bonds. was held at the room of the Trus-
tees. There was number of leading citizens
present, Mayor Brown presided, and 20
open the discussion he had his former propo-
sition-so refund the bonds at 621 cents and
the coupons at 80 cents-read by the clerk.
He then gave lengthy explanation of why
he favored the compromise, together with e
history of the bonds. He stated that his
proposition to refund had bean submitted to
the Board before he knew what Judge Nc
Farland's decision would be. The Mayor
then invited an expression of opinion from
any one present.
J. G. Devine said the State had fixed the
rate at 80 cents on the dollar; that the pao.
pie had declared sgsinst mora than that at
the last election that the statute prevented
bondholders obtaining execution against the
city even II they got judgment, and that the
bonds had been purchased for from II to Is
cents on the dollar
Mayer Brown replied that it Was difficult
to find tie owners Of the bonds that he had
made considerable effort to do so, but had
been able to ascertain tie ownership OF only
about 1854 600 of them; that many who in
vested large amounts il these bonds formerly
received but little interest; that he did not
know Of person now living in Sacramento
who had any Of the bonds. although much
had been said about persons here bsing inter.
ested IN them that Mir Gallatin at one time
owned about S1S 900 worth, which he pur-
chased. be said, because they were In the ma
ture OF = mortgage upon his city property,
and as such he might as well holdis hiineelf |;
but he has recently sold them for 81
cents on the dollar; that he believed the
bonds were nearly all held in Germany !:
that the statement that the bonds had been
purchased for 10 or Is cents on the dollar was
not true /; that while few had been go pnr-
chased. the larger bulk of them were
bought at a fair price; that the assertion also
frequently made that there was no value re-
ceived By the city for the. bondF, was alike
untrue that $500, 000 paid IN bonds for tie
old City Waterwosks were sold by the con-
tractors for all they could get (about so censs)
to enable them TO complete the works, and
that they were financially ruined By the I'M
dertaking that these bonds, with the unpaid
interest upon them, are now part of the
city debt, and amount TO about 5000, eco.
G. FL. Cummings was called upon, and re-
ptitQ DticlJ, cHyA1S llNS US appreciated the
motives of the Trustees in calling the meet
ing to obtain public expression upon the
bend question, but that, after al, the Trus-
tees must take the matter into their own
hands and make such arrangement and COM
promise with the bondholders as they believed
TO be for the best interest of the city.
Mr. Devine, who spoke several times,
claimed with considerable warmth that Trus-
tee Neilsen had just been elected upon
35-cent platform, with instructions to get it
as much lower as he could that he having
been so elected. he must stand by the require
mepts of his platform.
Some discussion here ensued as to whether
the platform was intended to be mandatory,
or only advisory. But as the audience were
probably aware that it was neither, but only
to catch votes, the subject was not pressed to
any great length.
E. K. Alsip, who said he had made the
subject of the city bonds study for two or
three years, was in favor of the Trustees
using their own judgment and procuring the
best terms that are possible. He thought
compromise, when consummated, would ma
terialiy advance the interests of the city.
City Attorney Anderson was asked for bis
opinion as to the legal aspect of the question
in relation to the bonds, and in few re-
marks favored compromise, if one could
properly be obtained, as law was tedious and
sometimes uncertain, but he thought if the
matter was continued in the Courts the city
would eventually be successful in the suita.
Peter BOIL favored the Board using its own
discretion in the matter Of compromise, end
thought the people would be satisfied /; thst
there were two cheap men in the Board so to
speak, OR two who had been elected upon low
rate platforms, and with the Board SO COM
posed, and the third member elected by the
people generally, he thought they could be
trusted that if the bonds could be refunded
at 90 cents on the dollar, and their payment
immediately commenced, the price of real
estate would at once advance % per cent.
Trustee Nielsen said that he was pledged to
do his best to settle the debt at 35 cent?, and
to reduce the water rates /; that be was ready
to redeem his pledges, and wanted to give
but fair price for the bonds; that ne had
made a proposition TO the bondholders to give
them 80 cents, which would rsduce the in
debtedness by half and taxation below one
per cant that this was the price he was will
ing to give for bonds and all coupons, whether
outlawed or not, and to take in all of the
bonds at That price that several bondholders,
represented by Judge benson, had coma here
and refused the offer that he was ready to
fight for lower figures, but would be fair
that he had no fear as to the result of his ac-
tons that he had not attempted to reduce
water rates because it was not practicable
just now, sud would lock like threat to the
Supreme Court. which was considering a suit
that be believed compromise would increase
values here 100 per cent.
Trustee Gutenberger gssid he wished to
say nothing on the subject at the present
time.
After some further informal talk on the
subject the meeting adjourned, with the I'M
derstanding that definite proposition, to be
submitted to the boudholders, would be con-
sidered by the Board at the next regular meet
inU