Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-07-31

quible, he has misstaied my language.
Pretending to give my language the
Mayor writes: ale Beatty says he has
paid off Sl,500,000." | used no such Ian
guage. The language | used is this: "The
Fund Commissioners did cause the peo-
pie to be taxed from 1872 to 1880 in the
aggregate S2l2,0S6 0S, with which small
sum they have taken up over million
and half Of the city's debt"
This is strictly correct, with this slight
exception. In stating the amount of debt
taken up | inadvertently included with
that actually taken up small amount OF
money that we have on hand, but have not
yet invested. But this is an immatersal
error, for We are investing a part of that
money nearly every week, and will very
soon have orer the million and half, as
stated. But we have not paid the debt I;
we have bought the debt and hold it in
trust for the city. ! append certificate
of the bookkeeper and expert, Mr.. Hop
per, who recently counted our bonds and
coupons. This shows we have on hand,
including $4,000 surrendered to the
Treasurer, nearly million and half OF
bonds and coupons. Ard we have money
enough on hand to make more than a
million and half when that is expended.
Will the Mayor show how We got those
bonds and coupons if we did not take them
up with the money that was raised for us
by taxes? VIII the Mayor dare to say we
have not now or had in our possession over
one million and quarter Of bonds and
coupons, besides $210,750 which has been
purchased by us and surrendered to the
Treasurer and cancelled? The S2l0,75 is
all that has really been paid by us. But
the million and a quarter on hand Is better
than paid. 1t will help to pay the out
standing debt and can then be cancelled.
In effect this million and quarter will
pay itself, and pays another million and
quarter of the debt besides.
Here follows Mr.. Hopper's certificate,
above alluded to:
To Judge II. 0. Beatty. In accordance
with your request, | give you from the
books of the Bond Commissioners the
total amount of bonds and coupons pur-
chased from commencement of purchases to
date: Bonds purchased, $47S. 200; coupons
purchased, 1896, S6S-total, 81, 47S,06S. Cash,
$50 264 81, will buy, say, 81, 500-total,
81 $40, 56S. The amount of cash received
by the Commission from city taxes to date
is 1920 0S. A. j. HOPPER.
WHO PAYS THE INTEREST on THE BONDS
HELD BY THE COMMISSIONERS?
The Mayor says the the Fund Commits
sioners have used 1921 900 of the peoples
money to buy up 100000. We have re-
ceived in all $4,000 0eaving ont frac-
tions) from the people by way of direct
taxes. We have received on our interest
fund $4,000. This latter sum is not all
invested yet. The question is, does this
interest come from the taxpayers or from
the bondholders? ! think | can make
even the Mayor understand this. Under
a decree of the Supreme Court the Trus-
tees are compelled to levy annually GER
tain amount or percentage of taxes for the
This tax has to be levied
until the last bond the city owes has been
paid. When this money is paid into the
Treasury it belongs absolutely to the
bondholders. Neither the people nor the
Trustees have any control over it. The
amount of the tax is fixed and certain the
Trustees can not make it more or less.
This tax is fixed and Interchangeable until
the debt is paid We get our interest
money out of this fund. 1t comes entirely
from the bondholders, and not cent from
my extra tax from the people. But, say
.hese great modern iinanciers like Mayor
Brown, if you get this money out of
The Treasury you keep back so
much from the other bondholders, and we
will be 50 much longer paying them off.
We must continue paying this Supreme
Court tax SO much longer The very re-
verse of this is true. If the Treasurer
would pay this money out to Davis, Meyer
md others he would pay it at par. We
take the same money and buy up at dis
count. Mayor Brown admits we can take
up this debt in from fifteen to sixteen
years, and then this Supreme Court tax
will stop. But il our Commission is. stopped
it will take from twenty to twenty-five
years to pay it, and this Supreme Court
tax must be paid right along to the end.
Our receiving this interest does not cause
the people to pay one cent more of taxes
for the time being, and stops the Supreme
Court tax six to ten years sooner than it
would otherwise stop. There are other
matters in the Mayors letter | intended to
answer, but it will take too much space
will say, however, there is much more of
fiction than of fact in the remainder of
the Mayors letter. 1t is hardly as near a
correct statement of the facts as his state
S12,000,0 900 and that we have not taken up
but 100000 of the city debt.
II. 0. BEATTY.