The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-28
BADLY MIXED ON Law.
The Stranded Treasury Relying
on an Act That Is
Repeated.
Lawyers Trying to Overturn a Pre-
viously Accepted Constitutional
Provision.

PROVISION
The distress now being suffered by the
officials of this great City is something
wholly without precedent. To use very
common phrase, they do not know
whether they are afoot or on horseback.
The treasury is empty, and its credit for
supplies is exhausted. The only means of
replenishing the treasury and thereby re-
storing credit-which is not then needed
is to collect taxes.
But the law under which the assessment
has already been made preliminary to
levying the tax has been repealed The
City and County Attorney has said there
is no doubt about it.
But some $40, 200 has already been spent
in making the assessment under the old
law and it is estimated that it would
cost about $25, 900 more to go over
the ground again, saving what may
be possible of the work already
done, and there is no money with which
to do it. The new law requires certain
machinery, books and blank forms, etc., to
put it in operation, besides money to pay
for the labor.
The Supervisors in all their distress have
not furnished the assessor with the ma
chinery and are taking no steps to do so.
SO the Assessor is going ahead working
under the old law, which the City and
County Attorney declares has been wiped
off the statute book.
What are we to do?" inquired Deputy
Assessor Herzer yesterday, in speak
ing of the matter. 1.-The old law
offers some chance of getting out
of our difficulty. The new law
multiplies our difficulties. Under the
old law the Supervisors can fix any rate
they please on the personal property levy,
and will, of course, fix one which will
produce revenue sufficient to pay our
debts.
The new law requires that we make the
levy on last years rate which was 81 per
800. The assessment is about $65, 900 900.
Suppose we collect half the levy, which is
about the expectation, at that rate.
THAT would give us $780,, 200, which
would not be available until after July and
would then about cover the salaries which
it is proposed to hold back. After that we
would have no other resources until the
end of October during which months treas
ury would be in its present condition. The
only thing to do is to Ignore the new law
for this year"
The Supervisors are consulting with ex-
Judges McKinstry and Rhrodes as to this
feature of the dilemma, and it is under
stood that they will go to the Supreme
Court with it in some fashion.
In the meantime the utmost confusion
prevails concerning the legal aspect
of the stranded treasury. AS has
been repeatedly stated the con-
tractors are quite ready to furnish
supplies If the City can show that it will
pay at any time within a reasonable future.
But the City and County Attorney
has been steadfast through several
doctrine that no money can be paid out of
next years revenue for goods purchased
this year. This doctrine has been rough
on the contractors heretofore under which
they are out some $4,000. The City has
preserved perfect equanimity heretofore
in the face of these conditions and only
the contractors have walked the floor.
Now, however, they are having an in
ming. They take the City at its word and
the warning of the court that "every man
is expected to know the condition of the
treasury" and they quit furnishing sup
plies when the money runs out.
Now 1t is the grea test desire of the City
authorities to secure an opinion from the
Supreme Court which will break down the
fence behind which they have stood off
the creditors heretofore and allowed them
to make promise to pay, which the cred
itors can hold them to under the law.
They have been in consultation with ex-
Supreme Court Justices McKinstry and
Rhodes on this matter, and it is under
stood they will endeavor to bring the mat
ter before the Supreme Court in some man.
ner, with the hope of getting such de-
cision.
Judge McKinstry, it is understood, de-
clares that, inasmuch as the obligations
for which the Indebtedness is sought to be
contracted is for the maintenance OF the
institutions of the Government, no consti-
tutional or Statutory provision can inhibit
them.
The Government must be maintained,
and to do so money is necessary. and
neither the Legislature nor the constitu-
ton can stand in the way.
The money was taken from the general
fund for purposes beyond control of the
Supervisors and by means sanctioned by
the court and not to be foreseen by the
Supervisors.
Therefore, it is held that the constitu-
tional provisions do not apply as against
replenishing the treasury for the legiti-
mate needs of the Government.