Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-09-29
THE CITY DEBT.
Report of a Committee of the Board oil
Trade Upon Matters Relating Thereto.

Report of a Committee of the Board oil
Trade Upon Matters Relating Thereto.
At a meeting of the Sacramento Board
Of Trade last evening, the committee here
/ tofore appointed to take into consideration
the city debt and report upon its present
condition, the means which have been and
are now employed tor its final extinction.
the probabilities of effecting a compromise
with the bondholders, the matter of re-
funding, ETC., submitted the following re-
port. which was unanimously adopted:
The original debt of the city was $780,
900, covered by the issue of bonds III 1888
in four separate classes OF S4OO,OO0 each,
payable in 1888, 1898, 1898 and 1908 re-
spectively, bearing interest at the rate OF
six per cent. per annum, payable annually.
For the extinguishment of this debt the
law directs that 50 cents on each 500 OF
the assessable value of property, together
| with 55 per cent. of the revenue derived
from fines, fees. harbor dues and water
works, be set aside for this purpose:
Since 1872 there has been about 100000
placed in the sinking and interest fund
under the above provisions, and has wholly
been applied toward the interest due on the
bonds.
This sum, however, being insufficient to
meet the maturing interest coupons, We
have run ten years behind in payment OF
same.
The present debt is..-.---.------:--sl,Ool,So
Past due coupons and accumulated in
4oo'ln
Total present Indebtedness 81 100000
These figures do not include the bonds
and past due coupons held by the Funded
Debt Commission, ~aggregating $685.
We have carefully considered the Ques-
ton of %refunding the present city debt, and
the most favorable scheme that has pre-
scented itself to our minds is that of COM
promising the entire debt at 20 cents on the
dollar, and issuing therefor bonds payable
as provided by law. e. 20 per cent. paya-
BILE within five years, 20 per cent. within
four years thereafter, and the balance
within the eleven years following-twenty
years being the longest time allowable by
law within which to pay; bonds to bear
interest at the rate of 5 per cent. per an
mum, payable annually.
The compromise on this basis would re-
quire an annual average payment as fol-
lows
First I'VE
Next V,o02
FOLLOWING f4,l0o
This could be provided for without any
increase in taxes. This calculation is based
on the hypothesis that the entire city debt
be refunded. From the best information
that we can obtain bearing on this question
we are of the opinion that a compromise
on this basis cannot be effected.
Upon the question of refunding the city
debt at 100 cents on the dollar with 3 per
cent interest bearing bonds, we are of the
opinion that the city should not entertain
the idea, as we would be obliged to raise a
sum largely in excess of what we are. at
the present time, i'll order to provide for the
payment of the annual interest and INSTALL
ment on the principal, as follows:
First five years an average of.......-...ys1O1 400
NeXl IUf,bZo
The following IL s6,4d
FUNDED DEBT COMMISSION.
We have carefully examined into the
workings of the Funded Debt Commission,
which was established by a legislative en-
actment in 1872.
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