Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-05-03
LOCAL INTELLIGENCE.
zee cIrYs IaDERTEDNEps.

Much Inquiry has been made during the
past few weeks az to the actual amount Of
the present bonded indebtedness Of the city,
and the nature of tie debts upon which the
bonds were Issued. It has required careful
investigation and zuch labor to obtain the
required date, but the task has been accom-
plished for the readers of the RECORD UNION,
and the results, which are reliable, are here
with presented. The original indebtedness
for which the bonds were issued, was for pur-
poses and amounts as follows For old water
works, S5OS. 600; for levee purposes, $500. 900 /;
for Fire Department, $4,000; for fitting up
city prison in water works building, 81, 800 !;
for old script outstanding, 81, 108. The ex-
penditures covered by these five items
were originally bonded at 10 per cent.
per annum, but upon passage of
the Act of 1858, said bonds were called in
and our present bonds issued for tbs above
amounts, at 6 PSF cent. per annun. There
were also issued at the same time bonds to
the amount of S970. 4S0, to refund prior
bonds which had been put forth from time to
time, bearing interest from 8 per cent. per
month to 10 per cent. per annum, and which
from 1S49 to 1858. Thus the total amount of
new bonds issued in 1858, to replace all
former bonds was 81, 562, 1888. at 6 per cent.
For 0 number of years the interest upon
the bonds was paid, but subsequently, it was
neglected or payment refused. The total in
terest unpaid during the past eleven and
half years, and including that to fall due to
January l, 1884, is 81, 046,000. This gives
total of 81, COS SSS on January l. 1884. From
this there is to be deducted the following
There were, prior to the creation of the
Funded Debt Commission, in 1872, S44, 900
of bonds, face value, purchased by the City
Treasurer at low rates. Since 1872 the
Funded Debt Commissioners have purchased
and now hold bonds of face value, S47S, 900,
for which 80 cents on the dollar
was the maximum allowed to be paid by law.
The Commissioners have also purchased out
standing coupons to a large amount, which,
together With the interest coupons attached
to the bonds which they have purchased,
amounts TO $3.50, 600. This makes total
credit of S8SS, 200. which, deducted from the
total original indebtedness and interest as
stated, to wit, 81 COS, 3SS, leaves a net indebt-
ness OF principal and interest January l,
1884, of 81 720, 1SS. OF this the face value
OF the present outstanding bonds is 81, 040,-
1SS, and interest on same, estimated January
l, 1884, $3.50, 600. There is $3.50, GOO of this
$3.50, 600 Of interest which the city claims is
barred By the statute of limitations, and
which question is now at issue in the Courts.
In this connection it may be stated that
the action commenced sometime since by the
Funded Debt Commissioners against the city
for unpaid interest upon bonds held by the
Commissioners. is in the interest of the city,
to place her claims against the city sinking
and interest fund upon level with those of
others, so that whatever shall be the result
of the litigation concerning the interest cou-
pons claimed to be barred, she shall not be
harmed