Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-03-12
gRE COUPON SUITS.

Judge Hundleg. Superior Judge of Butte
county, was engaged during the last three
days of last week in what msy be termed sn
investigation rather than trial of matters
involved in two of The coupon cases against
this city. The suits were commenced not
long since in the Supreme Court, one by
Freetill and the other by Davis, and are pro-
ceedipgs by writ Of mandate against Cham.
berlain, City Treasurer, commanding him to
show cause why he should not pay about
$4,000 of coupons of the city bonds falling
due on January l, 1872. The plsiutiffs were
represented by l. S. Belcher and William G.
Becher, and the city by City Attorney An
dersoD, and a. 2. CatliB and Freeman &
Bates.
The matters investigated by Judge Humid.
ley were disputed questions of fact arising
upon the pleadings of the parties, and which
were referred to him by order of the Supreme
Court to determine They involve an inquiry
into the financial affairs and doings Of the
city from 1853 to the present time, and de-
manded of the Judge ard attorneys long and
laborious sittirgs, commencing at A. NJ. and
ending at 6 P. N. of the last two DAYS, and
they are not yet entirely finished.
The main object of the plaintiffs appears
to be to avoid the statute of limitations,
which is interpossd as one of the defensss,
by showing that the coupons, though falling
due in 1872, were not dsmandable until 1873
by reason of there not being prior to that
time, sufficient money IL the interest funds
to pay them. Plaintiffs claim that this def
cheney was caused by the Trustees neglecting,
during considerable number of years-from
1864 to 1SS0-to SET apart TO such fund the
amounts of revenue provided By law thai
fla W'r,,uEaag o. l,Ea-anA L1,,.
period procured the passage of divers and
sundry special laws providing for special
taxes. such IS special taxes for support of she
public schools, fire department.. for street i.n.
provsments, free library and the like, and by
this means purposely effected reduction of
the general tax CT one per cent, out Of which
the creditors were, under the law Of 1858, en-.
titled to have fifty five per cent. SCI apart to
the interest and sinking fund cteated By that
law for the payment OF the interest and prin.
cipal of the funded debt All legal ques-
tions viii be decided by the Supreme
Court, after Judge Hnndley shall have
settled the facts. These facts will
exhibit the assessed value of the property of
the city each yasr since 1864, the amount set
apart 60 the interest and sinking fund each
year from the property tax, the water works,
| licenses, hsrbor dues and fines in the Police
Court, the operations Of the Funded Debt
commissioners, A1u many O5ner IacC5 OF IN.
tsTest bearing upon the questions in contro-
versy, upon which the plaintiffs claim their
right TO payment of what ara known as the
"outlawed coupons" and upon this they base
the concluding statement Of their petition,
the substance of which we quote.
| Petitioner says that the city Of Sacramento
ought not to be heard to interpose the plea Of
the statute of limitations, and ought to be
estopped from pleading III any Court the bar
of such statute by reason of the acts of said
city in the premises, as hereinbefore set forth,
TO wit, in procuring special legislation where
by special funds were created and special
taxes levied, and in reducing the taxes for
general municipal purposes, ffty-hve per
cent. of which would, under the Acts of 1858
and 1868, have been apportioned to the inter.
est and sinking fund, to about fifty cents on
each 500 of the assessed value for the seven
teen years from 1864 to $780, and in causing
all the moneys derived from water rents to be
| diverted from said fund for about nine years,
and so diminishing the amount of money s to
be paid into said fund as to render the
amount of moneys annually appropriated &c
said fund insufficient for the payment of the
interest annually accruing upon It's said
bonds,