Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-02-03
CITY TRUSTEES.
The Bond Question Reyived-Sharp Tao
tics of the Bondholders.


On Monday the Trustees were notified OF
an application for mandamus against the
City Treasurer, at the suit of George E.
Bates, praying for decree that the Treas
urer appropriate fifty-fiye per cent. of the
gross receipts from water rents into the
sinking and interest fund, for the benefit
of coupon holders The papers were re-
ferred to City Attorney Anderson, with in
strucions to report next morning.
Yesterday, at the opening of the meeting
of the Board, Mayor Brown remarked that
there was some trouble again, although be
thought, after the appeals had been with
drawn, there would be no further vexation.
He asked the City Attorney what course to
pursue.
Mr.. Anderson responded by saying that
this was no new question TO him, and that
in the suit of Max Hausmeister vs.. Porter,
now pending, part of the issues were in
yolved; that possibly the main question
upon the power of the Legislature to repeal
and modify statutes of the character of the
Act of 1858 could have been determined
upon appeal in those cases when the defense
was Withdrawn that he did not think
that the city charter of 1868 impaired the
obligation of contracts, when it provided
that 80 per cent. of the net water rents
shall be put in the interest and sinking
fund, and that upon this Act he would re-
ly, in the MAN, as a defense. He also said
that the water works. as at present con-
structed were under special Act passed on
March 30, 1872, and that this fact would be
pleaded in defense that there were other
defenses that would be presented, in order
to have full and fair determination in the
Supreme Court, where the case must ulti-
mately go.
Trustee Nielsen asked the City Attorney
how II was that under the Act divorcing
the city and county, that this question of
90 per cent. could be forced against the city
and not the county, when the Supervisors
were the governing power?
Mr.. Anderson replied that this was one
of the matters the Legislature had control
of, and that different rule was fixed for
the city's portion of the debt.
Mayor Brown stated that this was very
important case, and affected the whole
community, and that it must be fought
de was in favor of giving the City Attorney
full power to resist the attack, and that
any counsel necessary should be furnished
to assist him.
Mr.. Anderson answered that he was alive
to the issues, and understood what was
wanted; was stripped for the fray" so TO
speak, and would have reioiced in such Or
ders before the appeals were withdrawn
Trustee Jones added that he would vote
for the City Attorney to " go in" and, if
assistance was asked, to give him all he
wanted.
Trustee Nielsen always believed that
there was something wrong about this
bond question, and believed it to be for the
interest of the city to fight this case to the
bitter end; that he hardly expected an at
tack from one of the lawyers that had been
employed by the city, as was Mr. Bates.
Mayor Brown instructed the City Attor-
ney to consult counsel, if he desired. and
to leave nothing undone to defend the city
in this proceeding.