The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-02-03

As to the first item of the floating indebted
ness, sl35OO0, due on warrants issued on and
prior TO March y 1891, this can be converted into
funding oonds by obtaining vote of raIifca-
ton OF the issuance of the warrants (all of which
were in excess OF the one and one-haf per cent
limit upon the power of the city council to in
cur DEBT, but fell with all other ordinary debt
below the per cent limit in pursuance of the
statute authorizing such ratifying to be
passed on the last named date, the operation of
which il in its terms confined to indebtedness
attempted TO be incurred prior to its passage, as
well as, of course, an additional vote authoriz-
ing the issuance OF bonds for funding the debt
when so ratified. As to the second item, $780,
o1o, due on warrants issued since March Z, 1891,
e one and Peine enehaf nit when Gt the
sued, are invalid at present, and are not
capable of ratification because not falling with
In the scope OF the statute above mentioned,
anu hence they cannot be funded till the legis-
lature shall see fit to pass another and similar
statute authorizing the ratification of excess in
debtedness attempted to be incurred by the city
authorities since the passage of the statute of
March Z, 1891. This item must therefore rest az
at present, the holders OF the warrants depend
ing for their eventual satisfaction upon the dis
position OF the legislature to pass curative acts
and upon the honor OF the voters and the cor.
porate authorities of this city AS to the third
item, $4,000 OF Liabilities upon judgments not
arising out OF contract, these Liabilities can be
converted into bonds, because, not being in the
nature OF Indebtedness arising out of contracts
that the city council has attempted to make in
excess oil Its powers, but being rather
in the nature of liabilities laid by the
law upon the city for its torts,
such as neglect to collect street grade assess
ments for the benefit of the holders OF street
grade scrip payable thereby these liabilities do
not fall within the purview of the coustitu-
tionai limitations upon the mourning of in
debtedness The indebtedness TO be incurred
by the bonds to discharge these liabilities will,
therefore. be an original Indebtedness, capable
OF authorization by popular vote, inasmuch as
II falls within the per cent. limit, excluding
debt incurred for the purposes of water-works
ana sewers. The same remarks apply 10 the
fourth item, $4,000. OF liabilities upon con-
domination awards. These, too, are not con-
tract Indebtedness but liabilities arising out OF
torts OF the city, in the appropriation of land
for public purposes without actually making
compensation 10 the owners.
II all such of the above stated floating indebt-
edness and liabilities of the city (except the
s5o9.e90 due upon the more recent warrants,
which, as stated, cannot now be funded) shall
be converted into bonded in debtedness. the city
viii then, except in 40 far as { may henceforth
incur indebtedness or liability, be free from
floating Indebtedness or liability other than the
100000 warrants mentioned. Ii would certain
ly seem, as / understand that your committee
are fully agree, required by every considera-
ton OF sound financial policy that the obliga-
tons of the city should as speedily as possible
be converted into funded debt, aud that upon
thus Clearing Up its arrears it should begin to
pay rs il goes aud reSoiutely pursue that policy
The floating debt carries 10 per cent interest,
while bonds al per cent, or certainly at per
cent, can be placed at good rates; besides
which, the floating debt presented by warrants
being well understood TO he illegal from lack of
capacity in the corpOrate authorities TO contract
1t without the sanction of popular vote, and
dependent for its payment upon the sense OF
honor Of the community and the indulgence of
the legislature, can be placed only at ii discount,
the percentage OF which is greater each year as
the floating debt piles up ans the city fails
farther in arrears A floating indebtedness is
always q flcult of exact asCertalnment, and its
full extent is but dimly realized; while If we
fund al our obligations that We can, the full
weight of them viii be brought home 20 the city
government and the community, resulting IA
the most earnest, persistent ana wel,-considered
efforts to EcoHOmlSa IN expenditure, aud pro-
ducing greater readiness 70 bear the burden Of
sufficient taxation TO meet the current needs
OF the city and gradually reduce its debt As /
understand that this policy meets the iull aD-
probation OF your committee, aud that the only
question is as 10 how far il can be carried out
without meeting legal obstacles, have 10 al
wise you, as above indicated, that II Is perfectly
competent Tor the city, upon the proper author
iZAtIon by popular vote, to Tstify ami thereby
validate the warrants issued on Aud prior TO
March :, la9l, and the!eGpon to fund them by
an issue OF bonds, and TO issue bonds 10 raise
funds for the payment OF the citys liability
upon judgments not arising out OF contract, aud
upon condemnation awards Besides this, il
has been ascertaiucd from the city com ptr0licr
and from the proper departments OF she al
ministrstion that money viii be required by
the city for general municipal purposes during
the year lS92, TO the amount of about
$4,000, ia excess Of the resources that
it can count upon as within Its reach,
apart from the creation OF indebted
ness under authority Of popular vote; that tie
Indispensable en- iargement OF the water iacili-
ties OF the CITY will require ST least $250oJ IN
excess OF what can be counted on from the net
revenue OF the watcr-WOrEs during the year,
aud that about $4,000 viii be required for the
most urgent needs Of the sewerage system Of
the city, name y, the completion of the Lake
Union sewer tunnel, the construction OF South
seattle sewer tunnel. and the construction o.
some main sewers 10 connect with those tua-
ncls when built II bonds he issued 10 false
these several sums also. as well 10 fund the
indebtedness ana liabilities above mentioned as
capable OF being funded. the items OF tie pro-
posed bonded debt viii be IS follows
To fund warrants issued on AID prior
10 March :. 1891 -....................-..i1 $4,000
To discharge liabilities upon Judgments,
rendered or recoverable in pending
suits. .-:..s:;-...- - -so'V9
TO discharge liabilities upon condemns
ton awards, not iu judgment or suit. &-0,UQ0
To raise money FOR general municipal
purposes . -ftrtfS.
To raise money fer city watsr-woTks.... 235,cG0
TO raise money for sewerage system. 10000
Aothk +-'+ sAf-s%sSHS
This, added to the existing bonded debt OF