Sacramento daily record-union., 1890-04-05
THE CITY DEBT.
Conundrums That Intelligent Citizens
Cannot See Through.

Conundrums That Intelligent Citizens
Cannot See Through.
There was quite a spirited meeting of
citizens held last evening at the Board of
Trade rooms TO consider certain PROPOSE.
tlons that have been advanced looking to
the city obtaining the use of portion of
the money in the hands of the Funded
Debt Commission. Senator Dray presided.
and there were present Mayor Comstock.
Trustee Mclaughlin, H. o. Beatty. A. p
Catlin, Clinton L. White. CITY Treasurer
Gerber, Frank Miller, V. S. McClatchv, B.
U. Steinman, 6. NJ. Mott, S. S. Southworth.
Z: +; Grunsky, Dr. W. A. Briggs, D. A
Lindley and Adolph Heilbron.
The condition of the bonded debt was in.
formally discussed for a while, when a mo.
ton was carried requesting certain gentle
men who had definite propositions or plans
to submit 10 present the same.
Mr.. Gerber said that he differed from
Commissioner Beatty in this-that the lat.
ter regarded the Funded Debt Commission
as an outside party, just like any other
creditor of the city, while he Gerber con-
sldered it member Of the municipal fam.
lily. As such, he thought it should use its
means and powers to aid the city. He be-
lieved it the duty of the Commission to
loan'its money, as the city might reap
present benefit therefrom, and in the end
have no more to pay than under the pres.
ent plan. He spoke at some length, ure-
ing that the Commission should come to
the rescue of the city and leave the bond
market for while
CommisSione Beatty said that his plan
was simple enough, while that of Mr..
Gerber was simply impossible. The Com
mission could not lend dollar of its money
except on bonds voted by the people. it
had an express duty to perform, and that
was to wipe out the existing debt. His
plan was for the Trustees to increase the
liquor licenses 900 year, making the
revenue from that source 100000. Then
next year give the Commission the pro-
ceeds of 35 per cent. tax with which to
purchase bonds. This would bring il in
about $4,000 year. The Commission
could loan the city ION new bonds to be
voted 100000. This plan would give the
city plenty OF ready money, would enable
the Commission to stay in the bond mar.
ket, and would reduce taxation to two cents
on the dollar. He had no doubt the peo
pie were now prepared TO vote for high
license, but as the liquor men would op-
pose it, they might defeat the proposition
TO issue new bonds, which was a necessary
part of the plan. Wherefore, he thought
the Trustees should themselves raise the
license as they had the power to do so.
At the end of five years. he said, the
present debt of 81 SOC, 900 would be paid
or the 500 900 now remaining of 1.-THE CITY
would be vastly improved, taxes would be
reduced to two cents on the dollar and the
city would owe simply the $3.50, 600 new
debt created.
Mr.. Beatty said that bondholders Never
and Davis want to drive the Commission
out of the market. They want to send the
bonds down as low as possible-to % cents
on the dollar, even. and then buy all thew
can get knowing that in the end they will
get dollar for dollar. They would like TO
see the Commission stop buying bonds:
put the latter was now drawing down
500, 1000 year to their $25, ZOO, and if the
Com mission was to quit, as proposed, that
S105 900 would go to the other bondhold.
ing creditors of the city. He had suggested
the license plan to Meyer and Davis, and if
il were carried out they would be satisfied,
as 1t would give them their money; other.
wise they threaten to epjoin the Commits
sion from buying any more bonds and
keeping up the price.
MIR. Beatty further declared that the
Commission had lately bought bonds and
coupons of 1903 for 95 cents on the dollar
that would in the end save the city more
than 80 per cent, and explained how that
result would be achieved
The discussion finally become of desul.
tory character and lasted until late hour,
and the meeting adjourned, without action.
until next Thursday evening.
1t looked as though nearly everyone
present had a different idea as to what
could, would, or should be done. One
gentleman after the adjournment gave
probably a correct idea of the situation
when he remarked that 'they didn't any
of them understand the subject when they
went there, and knew less about it when
they had got through talking,