The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-01-29

We see from Table No. that. by pre-
serving the commission, we can pay the
debt, If 1t can be bought at its actual cash
value as 4-per-cent. investment by pay
ing out S943, 334 in installments during
the years 1872 to 1897, inclusive. If the
commission should be abolished at the
end Of 1892, and if our interpretation of the
law as to past due bonds ceasing to bear
Interest after maturity is correct, and, if
the commission could during 1892 buy in
all the long term coupons and bonds, we
conclude from table No. 3 that il would
take lnStallmentS amounting TO 81, LEG, 2S4,
extending over the years lS!2 to 1898, in
elusive. This shows a difference in favor
of retaining the commission OF Sl62, $50.
his Is the actual saving in future pay
ments the basis of value of the COM
mission as assumed by the Committee of
treeholders). 70 avert any possibility of
having to pay interest on past due bonds
or to free the city from an obnoxious
form of debt the commission Will I'M
doubtedly be willing to pay a bonus
rather than not buy in any bonds This
bonus should not however, be figured in
forming an estimate Of the value of the
commission, for, fit IS not good policy to
pay this bonus, the commission need not
pay it. If the prospect of having to pay
this additional interest is dangerous
enough to warrant the commission pay
ing bonus, it is dangerous enough to
warrant retaining the commission to stave
oil lawsuits, which cannot be brought or
decided until we can catch up with the
| interest and give the bondholders some
| thing to sue for.
AS we are working at present this time
IS several years of, but if we abolish the
commission our tables show that it will
be here in 1894 The additional time
might suffice TO enable the commission to
al
There is one thing to which would call
particular attention, and that is that table
NO. l shows that those who are afraid
they might leave their children with a
| legacy instead Of debt can best impose
upon these innocent creatures by retain
ing the commission and not allow it to
buy III any more of the old debt. In that
way the debt would not be wiped out
until 1906. while table No. 3 shows plainly
that the debt would be wiped out in 1895
II the commission operates as assumed,
which would be during this year only.
The commission has in the past been
able TO buy long-term bonds at prices
much below their value, figured on a
basis we have assumed, but on the
| short-term bonds they have not and are
not now able to make such favorable
! terms. 1t is probably fair to assume that
! latterly they have been able to make a
fair average. AS we near the end the
! probabilities are that we will have to pay
more nearly the value Of the long bonus
and get proportionately favorable prices
on such short bonds as are not being held
! to bluff us with a lawsuit.
If, therefore, IN operating the commits
| sion the short bonds are bought on an
average OF 10 per cent. over our calculated
values, we could say the commission
saves us the Si62. $50 obtained above less
10 per cent. of SOC, 800. or SOL, so, leaving
a net difference OF Si05,lZ 1t would
probably be more fair to estimate this
dilerence ut per cent, which would
! give result of about $3.50, soc.