Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-01-12
PAYING THE CITY DEBT.
Judge Beatty Becomes Pointed About
Money of the Debt Commissioners


EDS. RECORD UNION: To show the i'm
portance to the people of Sacramento O
getting the orders made which proposed
to Mayor Gregory, must revert to soms
former transactions. Between 1880 an6
1884 various suits were brought against Mr.
Chamberlain and Mr.. Porter, who were the
City Treasures during that period, to com.
pei them to pay out OF the City Treasury
the moneys there standing in the name OF
the sinking and interest fund. The prin-
cipal litigants were Daniel Mayer and Sam
uel Davis. Davis was contending that the
coupons from ~ to '76 should be paid first
Mayer contended that the coupons of 1878
and the following years should be paid
inst. Consequently the Treasurer could
not safely pay either party until the Court
! decided the question between them. But
| the Fund Commissioners held about as
many coupons as all the other creditors
put together. We proposed to place in the
hands of the Treasurer an equal amount
of the coupons of 1923, and of the 1873
series, and draw from the sinking and in
| terest fund just half the amount then left
| in the treasury. When the Court decided
which lot had the legal preference the
| Treasurer would cancel that lot and return
| the other to the Commissioners.
This was perfectly satisfactory to Mr..
| Cham berlain, and he told me he would paw
| over the money just as soon as the Trus-
| tees would allow him to do SO. The Trus-
tees had made an order when the suits
were commenced against the city by Davis,
Mayer and others, not to pay anybody I'M
til the Court decided which of the two sets
of claimants (both sides claiming the same
money! We're justly entitled. l went to the
Board to get them to modify the order SO
as to allow Mr.. Chamberlain to pay our
Board, SO far as we could present equal
amounts OF coupons representing both
sides of The question. To my astonish-
ment the Board not only refused nv re-
quest, but made stringent order on the
Treasurer not to pay the Board anything,
and fastened to elect new Treasurer Mr.
Porter, least Cham beriain should pay US
any money, notwithstanding their order,
as he not only had legal right to do, but
was legally bound to do, as the Court after
wards decided. But Mr.. Porter had no
such doubts about his duty. He strictly
obeyed the Trustees, but did not pay any
attention to the law prescribing his duties.
This brought on great many suits against
Mr.. Porter, some by original suit, some BY
Intervention.
There are only two need refer to here.
The Court decided that the Treasurer was
bound TO pay the Commissioners, notwith-
standing the order of the Trustees to the
contrary. After resorting TO all possible
delays, he did pay us our money, in the
year 1885, four years after he commenced
illegally holding back the money.
The Court also, in the case of Daniel
Mayer VS.. Porter found in 65 Cal, 67), de-
cided it was no defense fer Mr., Porter that
other creditors interested in the fund had
not demanded payment of their coupons.
From 1882. Tor some considerable period
-one or two years-there were large
amounts of coupons (Which the CITY has
since paid at par that We could have pur-
chased at 20 cents on the dollar. For nearly
the whole of the four years the debt was al
great discount, and if Mr.. Porter had not
illegally held back oar money we could
have purchased during the time from four
10 SIX hundred thousand dollars of the
debt and about doubled our annual income
for future operations, and in the end saved
the city seven or eight years Of heavy taxa
ton.
But that is past. Let US look to the
future. The Court in the Mayer case de-
cided Mr.. Porter had no right to say to
Daniel Mayer: Il won't pay your coupons,
because somebody else has coupons older
tHAh yOAio, VI va llC Sdllc aye, anu luGy
have not yet presented them for payment"
Mr.. Porter obeyed this decision. and paid
up In 1886. But presto change. Mr.. Porter
goes out Of office, and the State Bank sets
up another candidate, Mr.. Gerber, and he
now holds the Office. There is no iudg-
ment against Mr.. Gerber. He ignores the
judgment against Mr.. Porter. and holds
back at the present time over seventy thou
sand dollars for people who have never
asked for it, or if they have, refused to take
it when rendered. Sam. Davis asked for
part of that money (abcut S32,000), if they
would pay him that and the interest OF il.
But the Treasurer rendered him his money
without interest, which he refused to re-
ceive, which put him precisely as if he had
not asked for it. But, anyway, the Treas
urer has large amount that has not been
asked for. Some of these coupons for
which he is reserving this money lave
been standing since 1865. This money be-
longs to the Funded Debt Commissioners,
and if they had it they could now buy in a
large amount of the city debt to good ad-
vantage.
| will hereafter endeayor TO show where
the influence comes from that thus keeps
the peoples money from being used for
their benefit. and why it is that the Trus-
tees cannot see the necessity for making
any order for the protection of the city
II. 0. BEATTY