The record-union., 1895-07-18
PEOPLE WILL CONTINUE TO SWEAT.
They Must Pay on Indefinitely on the
Original Debt.
some of the City Trustees Change
Their Views on the Debt Re-
funding Proposition.

The City Board of Trustees met at 2
o'clock yesterday afternoon 10 further
consider the bond reIunding question.
A communication was read from the
Western Bank Note Company, stating
that they will engrave and print 64o
bonds of the denomination OF Sl,OOO with
the necessary coupons attached, type
printed ordinance on the back, for S54i oO.
In a dispatch to President Lawton,
Trustee Tozer, who is now in the East
recommended the American Exchange
National Bank for paying the coupons.
The bank will charge one-fourth per
cent.
Tie Clerk then read the inscriptions to
be printed on the bonds, providing how
and when they shall be paid Oil, ana
everything else necessary to be printed
Oh the coupons.
Bragg moved the adoption OF the fol-
lowing resolution:
"ReS0lUed, That the American Tx
change National Bank of New York be
designated as the bank situated IN New
York at which coupons on the bonds 10
be issued for refunding the city debt may
be paid at the option OF the holder"
Devine wanted to know if the resolu-
ton meant that the city was to go into
the refuuding business at once. lie was
informed by President Lawton that such
was not the purport of the resolution.
Devine, continuing, said il would be
crime upon the people TO refund the debt
when there were S409.000 Of the bonds
which do not bear interest and only
SOL 900 that do bear interest. lie was
opposed to the proposition il the past due
bonds bear no interest.
Lawton said he would like to read to
the members of the board Deyine's pO-
sition in the matter, which he so clearly
defined a short time ago in one of the
newspapers. He said Deyine had voted
for refunding and made a strong argu-
ment ia favor OF it. He was surprised
that Deyine had flopped over on the
other side of the fence.
Kent said before patronage is given to
any bank. the question should be gone
into more thoroughly. He regarded as
crazy man who would vote debt on
himself for forty years. when he could
pay it up in three years.
Leonard said if DeYine and Kent
wanted more time to investigate the
question they should be given until
Monday
Lawton opposed any delay. He said
the Board Of Estimate, consisting of the
Mayor, the Auditor and the Collector,
would meet IN short time and would
furnish the Trustees a statement OF the
amount OF money needed TO run the
affairs Of the city government. Every
thing should Oe ready, so that when the
Trustees meet in September to tx the
tax levy they could be informed how
much money was needed. He said the
question should be settled Immediately,
80 that The people will know whether or
not the debt is to be refunded.
Leonard said he would not be in favor
of proceeding further until Devine and
Kent had an opportunity to make fur
ther inquiries into the matter, and indi-
Gated what side OF the fence they are on.
Bragg said if nothing is to be done
about the refunding proposition the
whole matter might as well be dropped
then and there.
Mayor Steinman said that he would
give bond that the city would be out of
debt by July, 1899. Nobody would suf-
fer, he said, if things are left as they are
1or awhile. Nobody else would take the
bonds. The Debt Commissioners in 1896
Will have SI60,000; in 1897 they will have
more, and so on. The Mayor said it will
not be long before the bOndholders will
offer the city the non-interest bearing
bsnds for eighty-fEe or eigbty-eight
buy them in. The first expense for the
new bonds will be $500, and it is no sure
thing they will be taken up.
Wachhorst said he agreed with Devine
and Kent. He was in favor of the prop
osition at first, but since then he had
heard considerable against it.
Bragg suggested the whole proposition
be rejected.
on motion of Devine, the board ad-
journed until Friday afternoon at 2
O'Clock to further consider the matter.