Sacramento daily record-union., 1890-04-11
BONDS and STREETS.
COMMISSIONER BEATTY WITHDRAWs
HIS PROPOSITION,
And the Citizens Meeting Recommends
the Issuance of 100000 in
City Bonds.

the Issuance of 100000 in
City Bonds.
An adjourned meeting of citizens was
held at the City Board of Trade rooms last
evening to consider the proposition re-
Gently made by Fund Commissioner
Beatty, under which the Commission
might lend the city certain sums of money
for improvement purposes. There were
present, f. r. Dray, A. P. Catlin, Thomas
Dwyer, V. s. McClatchy. G. A. Luhrs, ].
o. Coleman, DR.. G. L. Simmons, A. He'll
bron. G. E. Grunsky, ]. c. Tubbs, F. D.
Ryan, Mayor Comstock, Trustees Nc
Laughlin and Wolf, Clinton L. White, Lin
coin White, E. ]. Gregory, DR.. W. A.
Briggs.
Chairman Dray stated that, as matters
stood at the adjournment of the last meet.
ing, Mr.. McClatchy was entitled to the floor.
Mr.. McClatchy said he would waive any
rights of his in the matter. and Mr.. Lind
ley took the floor, and explained the plan
outlined by him several days ago in these
columns concluding with the following:
Shall we provide funds for city improve
ment, or not: and if so, should the money
come from the Funded Debt Commission"
Several more gentlemen having come in,
Chairman Dray repeated the purpose for
which the meeting was called Shall the
meeting agree to adopt the plan proposed
by Judge Beatty for the eliminating of the
city debit?
Suggestions were asked for as to the
probable needs of the city in the way of
Improvements, and Mr.. Lindley replied
that about 5000 would do all that the
city would be called upon to do this year.
Ex-Mayor Gregory explained, in reply to
question, that the excess of this years
taxes over those of last years was for street
repairs, levees and drainage purposes.
Mr.. Heilbron thought it useless to ex-
pend any money in smoothing the surface
of the streets, as they become Just as bad
every winter.
DR.. Simmons, F. D. Ryan and others
took issue with Mr.. Heibron, claiming
that the streets were never in such a bad
condition as at present.
Speaking to the question before the meet
ing, c. L. White moved that the meeting
decide that the Beatty plan be not ad-
vantageous to the city.
G. E. Grunsky said he wsuld second the
motion unless Judge Beatty should so
modify his proposition that the Fund Com
mission should take five per cent. bonds of
the city in lieu of its present funds, and
agree to keep possession of the same and
not dispose of them to outside parties.
Judge Beatty said he had come satisfied
that his proposition although the best that
could be offered, had aroused a bitter
hostility in certain quarters and brought
only abuse upon himself. Men ignorant of
the bonded debt question had raised false
issues calculated 10 reflect upon his BEAT
ty's) good sense and integrity, and he
would now withdraw it, and allow the city
to raise its funds for improvement pur-
poses outside the Funded Debt Commits
sion.
The Judge then briefly rehearsed the
history of the bond question and the work
of the Commission, and claimed that his
policy had saved the city round $10O 600.
The liquor dealers and the class of ignorant
people who have abused the Fund Com.
mission for years past would, he was salts
fed, pull together and defeat his PROPOSE
ton.
In his remarks the Judge had cast some
reflections upon the policy of ex-Mayor
Gregory, who replied thereto. He said
that the records of eighteen years showed
that no Board of Trustees had ever agreed
with Judge Beatty. Mr.. Gregory held that
Judge Beatty was more deeply interested
in the operations of the Commission than
in the success of the city's affairs. Mr..
Gregory went on to explain the unfairness
OF the several propositions made by Judge
Beatty to the Trustees. While Mayor he
had several interviews with Meyer, one of
the bondholders, and suggested a settle
ment on rs per cent. basis, but he
laughed at it, saying that the bondholders
had better thing with the Bond Commits
sion, which paid them better prices. Later,
after the city had won a certain case,
Meyer did propose to accept such settle
ment, but he Gregory then did not care
to renew negotiations, as the city had the
best of the situation.
While Mr.. Gregory was speaking Judge
Beatty withdrew from the room, and there
being nothing before the meeting, Mr..
Coleman moved:
That the City Trustees be requested to
raise fund of S25, 600 to be used for street
Improvements, and to get the money, if
possible, from the Funded Debt Commits
sion.
d. A. Lindley moved to amend by strik.
ing out the latter portion of the motion
that relating to the Commission.
Mr.. Coleman then withdrew his motion,
and c. l.. White introduced a resolution
covering the same ground but omitting any
reference to the Funded Debt Commission,
and requesting the Trustees to submit the
question to vote of the people-in other
words, for the issuance of bonds.
A. 2. Catlin spoke in favor of the propo-
sitlon. He said the bonds would readily
be taken by capitalists. There never was,
he said, any practicable way by which to
get any money out of the Funded Debt
Commission. 1t was almost certain the
Courts would hold that the Commission
could not loan any money on new city
bonds. as its powers we're limited to GER
tain acts. At least, there would be so
much doubt about it that nobody would
take them from the Commission. But the
city could sell her own bonds readily; and
even though outsiders did not want them
he was sure there was public spirit enough
among the citizens of Sacramento to in
duce them to take such bonds themselves
Mr.. Catlin then went into an exp!ana-
ton regarding the effect of late Supreme
Court decisions upon the interest-bearing
value of bonds and coupons. He held that
if the city had done its duty the debt
would have been wiped out before this.
The Funded Debt Commission had been
in existence Tor eighteen years and yet, ac-
cording to the Commissions own state
ment, the city still owes the same amount
of Indebtedness. The taxes that have been
raised for the Funded Debt Commission,
he said, would, if paid into the sinking
fund with the taxes that should have been
paid into that fund by the city during the
time it was not done (some seventeen
years., the city could have redeemed its
debt by advertising for bonds from time to
time.
Mr.. Cstlin spoke at considerable length
on the subject. Fresno, he said, only five
years old, had borrowed 100000 and put
it on her streets. Instead of voting S25 ,00e,
Sacramento should put at least $50, 600 into
street improvements.
At this juncture, and before Mr.. Catlin
had concluded his remarks, Trustees Nc
Laughlin and Wolfe withdrew.
Mr.. Luhrs said he had no doubt that, if
the city would vote the bonds, they would
be taken by the citizens, and his firm, for
one, would take 81 600 of them.
Mr.. Grunsky Endorsed Mr.. Catlin's re-
marks, and said he had no doubt the bonds
would be readily taken.
Mr.. Coleman moved as a substitute for