Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-10-01
TIE sUPREMs COURT AND TEE CITY
IsDEB rEDEEsS,

An important decision of the Supreme
Court has been made relative to the in
debtedness OF Sacramento. The city lev
led 50 cents of tax for the general fund on
the 500 Of valuation of property. The
creditors Of the city claimed that 81 should
have been levied, and that So per cent
thereof should so 30 the sinking and inter
est fund for the payment of interest ecu.
pons and the redemption of bonds. The
city insisted that the Act of 1858, under
which the bondholders make their claim,
was repealed by the Act of the Legislature
Of 1862 g. The Supreme Court holds that
when the bonds were issued by the city,
and purchased by the boIders, it was IN
der solemn compact 10 conform to the
provisions of the Act authorizing the igsu.
ance that under the law the city must
levy 81 for the general fund, IS cents of
which must go into the sinking and inter.
est fund The decision is by Justice Ross,
aad is ooncurred in by Justices McKin-
stry, Myrick, Shsrpstein, Thornton and
Mckee
We are not surprised at this decision.
The law is very plain, and as its provisions
have been avoided for many years, we are
Just that much behind as to time in dis
charging cur indebtedness. Il was the
conviction of this Journal some years ago
that the contract would be declared valid
In time. For 80 holding and expressing an
honest belief we were denounced most IN.
justly as being the agent, organ, friend
aud bedfellow of the bondholders. In
truth we saw only what was the ineyi-
table It was the law as it read to our
comprehension. 1t appeared to be G very
simple contract, without mbiguity, and one
that provided for bonding our indebted
ness on our agreeing 30 pay percentage of
certain taxation to bhe discharge of interest
and principal. The city recognized this as
the Interpretation of the compact by levy
ing the tax for some time, snd paying the
percentage into the sinking and interest
fund, az the Court now says she must do
again. It is history that Msssrs. CatIin &
freeman, counsel for the city, advised the
Trustees they must do what the SUI
preme Court now says they must do.
It was unnecessary for the Court
TO intimate, as it did, that this city de-
sired to repudiate her debt The sound,
honest-thinking senge of this city never
entertained any such idea. We have con-
tested the law 20 satisfy the doubts of
those citizens who honestly believed that
the law did not require the levy to be
made as it is now decided it must be- II
the Supreme Court of the United States,
it will be desirable, in order that the last
doubt concerning our legal obligations may
be removed. But it is good legal advice
that there is no known method By which
the city can go TO the Supreme Court
OF the United States in the present
case. If it shall be determined that
the ,aw-against which there can be pre-
sumed no dishonor-dOea not require of US
60 levy given tax aud set aside given
per cent. thereof fer the city creditors,
none viii rejoice more heartily than this
journal. But ia the meantime it is Just as
well to look the facts courageously in The
face; we have had enough Of whipping
about and tinksring. The city is in debt
chat debt ia iaterest-bsaring every years
delay makes the burden the harder to bear,
for its increase is rapid. Had ii been pos.
sible to have discharged the de6. as il &C.
crued, we would today consider the obi.
CATION SIS mere nothing. The longer the
delsy the weightier the burden grows.
Bat this is not matter TO cripple this city
seriously. It's permanent interests art
equal to the discharge of It's duty, what
ever the Courts may determine it to be
We have no idea of what the city cred
itors wish; on what policy they have de
termined, or at what they hold their claims
We have only the interests of this cit,
at heart, and propose, as we always have
to favor any and sll honorable mean
TO secure the city's discharge from
debt at the lowest possible figure, wit
greatest speed, and, if it were possible
her exemption from the whole debt by 40,
honorable or lawful means whatever. L
the past we have had various committee
and citizens organizations to consider thi
matter Of our bonded debt. They hav
each and every one failed of their purpose
because they arrived. after due examins
ton, at precisely the point the Suprem
Court has now reached, 10 wit the LAY
which embedies the contract of the cit
viii those who accepted her paper writ
Sen with promise to pay. It is true tn