Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-09-29
There is attached 10 these bonds unn

tured coupons amounting to S319,67S.
Upon the S47S,2 200 in bonds held, the
Commission now receive an annual inter
est of SIS 692, to which add the amount
received from past due coupons, purchased
separately from the bonds, make the aggre-
gate receipts for this year about $55, 900,
with which the operations OF the Commits
sion may be carried on.
The work OF the Commission has been
very much retarded by the refusal on the
part of the Board of Trustees TO levy each
year the special tax as provided for, and by
the litigation with the bondholders, which
locked up the funds of the Commission for
about four years, and during a period when
the low price of coupons would have en-
abled the Commission to use their means
to great advantage.
All our investigations have led us to re-
gard the Funded Debt Commission with
great favor, and we think if the work can
be carried on without restrictions and him
ORANGES, our present debt can be wholly
paid of within twelve or fifteen years, and
without the least increase in taxation.
In the fall of 1879 suits were brought by
the spectators against the city to compel
the Trustees to place in the sinking and
interest fund the amount provided for
under the law authorizing the issuing of
bonds, and since that time we have been in
continual litigation upon this and other
matters relative to the city debt-the latest
of which is an appeal to the Supreme
Court by the Board of Trustees from the
mandamus issued by Judge Mcfarland,
compelling them to comply with the law
by levying ten cents on each 500 of the
assessable value of property for the use of
the Funded Debt Commission.
The appeal was taken upon the ground
- - n.lA g. -.
unconstitutional body, and in the hope
that the Supreme Court would SO decide,
and thus destroy the Commission.
Your committee cannot reconcile them
selves to this action, as we believe the dis
solution of the Funded Debt Commission
at this time would be a great calamity to
the city.
If the Funded Debt Commission should
be dissolved, the entire amount (SS5,000)
now placed in the sinking and interest
fund would go to the spectators instead OF
the small portion they now draw, thereby
increasing the value of cur bonds, and fix
ing upon us a debt-bearing interest at 6 per
cent. per annum without any relief or rem
edy but to pay in full, both principal and
interest.
We have endeavored to ascertain the
present market value of our bonds. but find
l II q Z AllltCNAlI hCtl ~
fact that. as the decisions of our Courts now
stand. the bonds do not bear interest after
maturity and that the interest is ten years
behind, and that they have been ever since
1862 considered as having a purely specu-
lative value, having been bought at prices
ranging from ten to thirty-fve cents, makes
it a very difficult matter to settle, and it is
fruitful of all sorts of opinions.
When the Commission was first estao-
lished in 1872 the bonds were bought IN at
IS49 cents, and from that time TO 1878 they
run down to so cents, and some were
bought in 1870 at IS cents.
Since 1879 the work of the Commission
has been confined entirely to the purchase
of coupons-the bonds having appreciated
in valve beyond 30 cents, the limit pre-
scribed by the law at which the Commits
sion might purchase.
Your committee believe this limit should
be removed by amending the Act, and the
Commissioners be allowed to enter the
market and buy up our bonds at the Lowest
figure possible.
We have had so much public discussion.
that many are led to regard our city deb
as appalling and a wonderful incubus thi:
is not borne out by facts, as will readily bt
preceived when we reflect that only abou'
100000 is raised by direct taxation, or $50,
uOU from HI cCUtSSS- dnbuallt iOi bnc tds
ment of the debt.
We respectfully bespeak for the Funded
Debt Commission, on behalf of the Boar
of Trade, a hearty and generous cooper
alton, believing that through this channe
we can find speedy and complete relic
from our present financial difficulty.
To this end YOU committee beg leave t.
offer the following recommendations
First-That a cor-mittee be appointed t.
wait upon the honorable Board of Trustee