Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-07-31
CITY DEBT QUESTION.
LETTER FROM JUDGEH. O. BEATTY
UPON TIE SUBJECT.
His Views and Figures Upon Points
Wherein a Difference of
Opinion Exists.

the 18th ultimo there is communication
from Mayor Brown in answer to one from
the undersigned in regard to city debt
finances, etc. The Mayor and myself diffe
widely as to facts and conclusions. Tn
people of the city are deeply interested il
this matter, but generally have not tn,
time or opportunity of investigating tn,
subject for themselves Therefore | adj
dressed letter to the principal bankers o
this city, asking an answer to eleven in
terrogatories, categorical answer to which
would have saved me the necessity of an
swering the longer part of the Mayor
communication. But after mature consid
Grafton of the question, these gentlemen
send me the following response:
LETTER FROM THE BANKS.
SACRAMENTO, July %, 1886.
II. 0. Beatty, Esq, City-DEAR SIR: We
have read your letter of the 18th inst, and
have carefully considered the questions
you PROFOUND TO us about the Funded
Debt Commission, its past work and its
future possibilities in relation to the debt
of Sacramento city. While we feel the
deepest interest in the subject, and would
willingly devote our time and labor tC
your assistance, we hesitate to answer the
categorical questions you ask, for we think
II would be assumption for us to offer oul
individual views as authority when any
fair man who will give the subject careful
consideration will be found quite as com
petent to Judge for himself as we are to
judge for him.
We will say, however, that in our
opinion there is no probability that an
immediate compromise of the city debt, at
any considerable discount on its face can
be effected, for owners of a sufficient
quantity of the bonds willing to accept a
discount cannot be found, while some of
the largest holders have announced that
they will never accept less than par for their
bonds. We have examined and considered
the figures and statements submitted to US
by your letter, and we believe them to be
true. From those figures il appears that
your Commission has received, in round
numbers, S422 coo, of which $4,000 was
derived from taxes levied for the benefit of
the Commission, and the remaining $780,
600 was drawn from the sinking and in
terest fund upon coupons owned by you.
1AC city ldAtS iiit llOl illtAGdotd ny IGuSOll
of any moneys that you may draw from
this fund, for it is well established that
about $4,000 must be paid into that fund
annually
The fact that you have been able to hold
the bonds and coupons bought by you as
valid claims against the city, and collect
cash for the latter, appears to us good an
swer to the charge that the operations of
your Commission have enhanced the value
of outstanding Indebtedness of the city.
We believe, too, that your Commission has
been ably and honorably conducted, and
that it has been of great profit
to the city; and that in
its future continuance and provision
with funds alone can be found a solution of
the present difficulties of our city finances.
Very respectfully, 4. ABBOTT,
Ed. K. HAMILTON,
FRANK MILLER,
This imposes ON me the necessity of
detailed reply to the Mayors article.
FUND COMMISSION OR COMPROMISE.
At the outset the controversy between
the Mayor and myself was: Shall there be
compromise OF the city debt, or shall the
Fund Commissioners be allowed to 90 on
and take up the debt as they were doing
five years ago, when the Trustees tied up
our funds and stopped us from buying any
of the debt for a period of more than four
years. under the pretext that our buying
would prevent a compromise and refund
ing Of the debt ? | understand now Mr.
Brown admits there is no present prospect
of compromise, and thinks the Fund
Commission had better go on. This is
some sign of improvement in the Mayors
understanding. 1t would have been better
for the city by half a million of dollars if
he had learned four or five years ago that
he could not compromise with several
hundred people scattered all over the face
of the civilized world, many of whose ad-
dresses he did not know. We would then
perhaps have had our money to buy cou-
pons, which were selling at twenty cents
on the dollar, and when we could have
compounded our purchases every year.
CITY FINANCES AND TAXES.
But whilst the Mayor gives up his pet
and very expensive and impracticable
scheme of compromise, he still repeats the
silly and absurd stories told about the Fund
Commissioners by set of conspirators who
undertook four or five years ago to destroy
this Commission, and render it odious in
the eyes of the people The first thing
desire to call attention to is the Mayors
statement about taxes.
He says under his proposed funding bill
the city would only have to pay on the
funded debt annually, principal and inter
est, $4,000; all other city expenses,
S137 900 - total, $4,000. He further
600. The Trustees this year have levied
an assessment of 81 10 on the hundred.
This on Sl2,000,000 will produce $4,000.
Add for fines, licenses and net water rates
1.-THE Mayors fgures)S62 600; total, $4,000,
raised this year in taxes. What do they
intend to do with this $4,000? First,
they must pay the ordinary annual expenses,
say Sl37 eco. Next, our funded debt, inter
est, Fowle bonds, and fire department
debt, 100000. Next, an extra $4,000
for sewers, $l0,000-total S247 900. Here
is the handsome little balance of 67,000,
for which the Trustees have no use
whatever. But the people have to
pay it if the Mayor is right. But the
Mayor is not right; he never is. When
he said our present assessment roll is
Sl2000,000 he only meant it TO count
when he was figuring out how easy he
could pay the debt Of the city. When he
wants to figure on his economy he would
not want it to count for more than 5000
600. But we viii count it at the truth
81 100000, and take S21, 900 from the
Mayors estimated revenue, and We still
have SIG, GOO levied for which we have ne
use at all that ! can see. What does our
economical Mayor propose doing with this
large sum2
RATE OF TAXATION FOR TEN YEARS PAST
The Mayor SAYS " the average regular
tax for the last five years has averaged
81 70 on the hundred dollars" The
total taxes levied for the last five years
have been $40 80, or s. 10 per annum
OF this, however, 81 levied in 1884 has
never been collected, but is left standing
as lien on the real estate of the city
a cloud over titles and suspension of the
running of the statute of limitations in
favor of property-holders Outside of this
81 the tax levied has been 50 30, or 81 go
per annum. Last year t'S5) it was 81 90,
this year 81 10. This looks like it was
increasing. Whether this is regular or
irregular leave to the Mayor.
The Mayor draws comparisons between
the rates of taxation, what has heen
accomplished during his term of office. and
what was done in a like preceding time.
In making this comparison he makes state
: r Il. i. I