Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-06-28
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This is Just what could be done on q
compromise at 20 cents and pay the debt in
twenty years, or sooner by natural increase
of the roll. Now, Judge Beatty makes
some queer assertions-one particularly,
without foundation only in one instance
| that | know of-that is, " That your taxes
have been constantly increasing and have
been squandered in foolish and unneces-
sary litigation, nearly all of which could
have been, and ought to have been,
avoided"
In answer l will state that the annual
regular tax for five years has averaged
Isl rs on the hundred dollars "a consider
able decrease from former years., and
five years interest on the debt has been
p2id during the time, and money enough
given to the Funded Debt Commission to
redeem 100000 of the debt. The only
money squandered-and the Trustees were
opposed to that-was a fee of $3.50
paid out by the Fund Commission
for legal services entirely useless
to the city, as it would have made no DIFF
ference to the city which way the case had
been decided, and if an attorney was
needed, the city already had one that was
faithfully looking out for her interest.
Again, be states that next year, if Put
nam collects 100000 ami pays it to Porter,
it would, under his manipulation, re
deem $120 900 of the Indebtedness, where.
as his own figures show that only $4,000
of the actual Indebtedness would be re-
deemed which would be an average of rs
cents or the dollar.
Again, he states that he will redeem the
debt in thirteen years under the present
working" Now he may figure, but the
plain facts are that the debt, under the
most favorable circumstances ii. e., bonds
not bearing interest after due, will be
100000 to be paid. If he is
as successful as now to get
the Indebtedness at 20 cents Ito say nothing
of the operation of the Commission en-
HANGING the value by reducing the debt
yearly, it will take 100000 hard dollars
TO redeem it. Then take the 100000 raised
for that purpose, and you will see that it
will take nearly sixteen years to pay it.
Another statement by the Judge that the
facts do not bear out is, he says he has paid
off 1,500, 600 with $4,000; whereas the
records show that he has used 1921 900 of
the peoples money TO buy about $47S, 900
in bonds, and like amount of coupons,
making about 100000 purchased for the
above amount-S321, 900.
/ was decidedly in favor of a compromise
three years ago at 624 cents on the dollar,
and could have effected it then but for de-
termined opposition. l am in favor of a
compromise now on fair terms but if we
cannot compromise, | am in favor of the
existence of the Fund Commission as the
next best thing. A compromise would
settle the expected litigation on the bonds
bearing interest after becoming due
Should we lose that point our debt would
become enormous.
l think the Fund Commissioners did an
unwise thing in this last redemption, and
! would have bitterly opposed it if / had
known it in time. They set schedule for
coupons, averaging about 60 cents for the
different denominations, and upon, as
understand, threat from Meyer & Co. that
they would not surrender any at that price,
raised it TO 20 cents. Now as the coupons
were not bearing interest, | would have
kept the money and threatened Meyer e
Co. that it might rust while at least in
the treasury. | believe Meyer & Co. would
have taken the IS cents, forming my opin-
ion from like threat soon after | was APP
pointed on the Fund Commission. l was
for knocking the price offered by the Com
mission at that time down to % cents on
the dollar Meyer Il Co. said then that we
could not get any bonds at that price, but
we did use all our money and got the bonds
at % cents.
The Judge seems to pride himself on
looking ahead Now what would be our
position to-day had he in 1872 compre-
missed the then existing debt at about 35 or
40 cents on the dollar, which could have
been done at that time?
JOHN O. Brown.