Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-08-30
The City Bonds Controversv

controversy with Mayor Brown to proven
his inflicting a great financial calamity or
the city. He seems tired of that subiec
and wants me to give an account of my
connection with city finances for the last
quarter of century or so. Whilst l doubt
whether the public is at all interested in
that question, will answer some of the
Mayors questions. | came to this CITY to
practice law in 1852. In 1862, without any
| knowledge or consent of mine. the Board
of Levee Commissioners elected me attor-
ney for the Board. Ny duty as such re-
quired me to institute legal proceedings to
condemn the right of way for leyee from
Brighton to above CORTLAND, to clear off
timber and brush on both sides of the
American river from Brighton to the
mouth, and to dig two canals on the north
side of the river to. Straighten the channel
This involved the prosecution of suits
against each separate owner. The investi-
cation of a great many exorbitant de-
mands, and the examination of a great
many witnesses was the occupation of nv
time for many months. When the work
was done | donated my services to the city.
| refused to hand in any bill or accept any
allowance from the Board. This was no
| doubt high crime in the estimation of
Mr.. Brownie refuse to take money from
the city treasury when had a chance He
has under his control the records of the
Levee Commission and can verify this
statement.
When the Hoagland bill was before the
Legislature authorizing him to sue the
city, the Board of Trustees requested me
to go before the committee and make an
argument against its passage did so. 1
argued against the constitutionality of the
hill Most of the rom rnitfaarnan fold M
they thought was right on the co..stitu-
tional question, but as the bill was, in their
judgment, an equitable one, they would
pass it and leave the Courts to decide the
constitutional question. For this | pre-
sented no bill against the city, and never
received anything
In 1872, after being applied to to bring suit
against the city on its bonds-Which | re-
fused to dol looked into the CITY debt
matter and found it was in an apparently
hopelessly insolvent condition. l set to
work TO study out plan to relieve her, if
possible. l thought | could see way to
get the city out of its difficulty in twelve
or fifteen years with not very heavy rate
of taxation. At my own eXpense-except
SIS contributed by VIM. Gwynn, the lime
merchant hired halls, printed hand bills
and circulars, etc, got the people aroused
to the importance of the matter and got nv
bill through tbs Legislature | asked Gov
ernor Booth to appoint myself, J. d. Lord
and Henry Merwin on the Board. He did
so. and for period of six years we con-
Quoted the business with very light taxes,
bought about 100000 of bonds and cou-
pons, performed all the labor without a
dollar of compensation, kept down the
entire expenses for a period of six years to
the low figure Of 81 ,162 10, and about nine
font he Of HI, TO-,
was no special provision in the bill for pay
ment of travelling expenses railroad fares,
etc. These | paid out of my own private
funds. To the great misfortune of Sacra-
mento city, Henry Merwin died. To its
still greater misfortune, John q. Brown
was appointed his successor. After this the
Trustees imprudenuy got the city into
litigation by refusing to levy the So per cent
tax for the creditors. Then Frank Living
ston, himself one of the largest creditors of
the city, and, if | mistake not, represent.
ing some ofthe other large creditors, came to
Sacramento and urged upon me the accept
ance OF retainer to prosecute the claims
of the creditors against the city. This /
positively refused. But | went to San
Francisco and, with the assistance of Mr..
Livingston, got all the creditors, so far as
knew them, to agree to q settlement with
the city. brought up this proposed agree
ment for settlement, and on this agreement
Mr. McClatchy attached his amendment
for regulating the coupons of 1926.
So far, the dividends of myself and the
Beatty family in general from the Fund
Commission, have been of the Irish nature
1t cost me $500 before got the bill through
the Legislature. 1t cost me at least $500
more for travelling expenses and hotel bills
during those eight years, besides some
other small incidental expenses. l threw
up the chance of S. 900 fee, at least and
performed services for the city without
charge, worth at least 81 600 a year for eight
years. Dividends or pecuniary benefits, to
myself or any member of my family, not
one cent. Mr.. Brown was about eight years
on our Commission, familiar with our eX-
penses and other accounts. We have
vouchers for every dollar we ever ex-
pended. l defy him to show how one
single dollar could By any possibility have
gone to myself or to any member of my
family.
In 1882 Mr.. Brown, holding the double
Offices of Fund Commissioner and First
Trustee signed an illegal order taking
the money belonging to the Fund Commits
sioners out of their control, and W. H.
Beatty was employed to get it back. The
amount allowed him as fee for getting it
back, John Q. Brown knows that is the
only dollar any member of the Beatty fam
lily ever got out of the Fund Commission,
directly or indirectly. When he talks
about the Beatty family being supported
off the drippings of that Commission for
fourteen years, he knows he is uttering
deliberate malicious, malignant falsehoods
The Mayor inquiries how much one of
my sons-in-law Mr.. Densonl made by way
of fees from the bondholders. This is
something about which | know very little,
and care less. Is it any of Mr. Browns
business what MIR. benson charged his
clients? The city did not pay Mr. Den
sons fees, nor any part of them. If he got
fees out of the bondholders, Mr. Brown
gave him the chance to do it. If Brown
and his associates had not broken faith by
failing to carry out the McClatchy compro-
mise, benson would never have got those
fees.
Then he asks what another son-in-law
Mr.. Bates made by buying coupons
cheap and getting high price for them"
This sentence is happy compound of stu
pidity, mendacity and malignity. The idea
of my giving Sam Davis and Mr.. Bates
information as to how to buy coupons is
rather too stupid even for John Q. Brown.
But the falsehood and malignity of the
matter is in a mean, dirty and groundiess
llluJ l. OIlc the uliu NOlh-
missioners, gave him some information
whereby he got the inside track in some
way in selling coupons at high price TO
the Fund Commission. The records of the
Fund Commission show every coupon we
ever bought from 1872 to the present date,
and the party from whom purchased. Mr.
Bates has never sold US one dollars worth
of coupons, nor has he even made single
offer TO sell. If Mr.. Bates made a large
profit on his investment, he made it be-
cause the Mayor kindly kept the money of
the Fund Commission tied up until Mr.
Davis and his friends bought up the
whole of the old coupons at about
2Os cents on the dollar, and then he
kindly kept the money in the treasury, so
that when Davis got all the old coupons.
the Treasurer would be ready to pay them.
When Mr. Davis and his friends could go
to the Treasurer and draw the money on
their coupons they had no reason to sell to
the Fund Commissioners.
Now, ask Mr.. Brown to show what in
formation | could by possibility have given
Sam Davis and his friend Mr. Bates, or
anybody else, which would have enabled
them to buy coupons cheap? What in
formation they did not already possess?
What information / could have given them
whereby they could have sold them higher,
or get their money from Mr. Porter
quicker?
| will not ask Mr. Brown to admit any
thing as an honest or truthful man, but