The record-union., 1895-08-20

success, and since you are obliged to levy
Inc taxes tor this year not later than sep
tember 2d-two weeks from to-day-it
seems reasonably certain that you cannot
with safety do otherwise than to levy
the taxes for this year at the old rate
DO cents on the Sl00-for the purpose of
meeting the bonded Indebtedness. 1t
csn be easily demonstrated that, with
reasonably prudent management, one
! more levy at the same rate will be the
end OF high taxation in Sacramento City.
During this and next year, in order to
meet Eli overdue Indebtedness, and free
the city from all necessity thereafter of
the present high rate of taxation, we
would have TO provide, either directly or
through the Funded Debt Commission,
for the overdue bonds. that is, $4,000;
also interest on bonds not due, $50, 600.
making total of S440, 800.
The present assess ment roll is substan-
TALLY fifteen and one-half millions, but
since the value OF properties ia the city
is Increasing at the rate of fully $1,000 per
day the assessment roll could easily be
made seventeen millions.
The revenues to pay off the indebted
ness above mentioned would be for each
year this and next as follows:
80 per cent. direct taX.................. S935OO
90 per cent. waller rates. $4,000
90 per cent. saloon licenses. 10000
% per cent. business licenses, Police
Court fines and harbor dues.......... 10000
Total for each year............. .Sl83, 800
Or, Tor the two years, S307, 900; while. as
shown above, there is $40, 900 to be pro-
vlded for; so that taxes levied at the old
rate OF from 81 30 TO - 20 for the present
aud next year Will come within $4,000 OF
dlsposing OF all the indebtedness now
pressing us-an amount which could
easily be met by the Funded Debt Com
mission by sale Of levee bonds and like
securities held by it.
The city would then start in on the
year 1897 with no creditors pressing her.
with no principal of bonds calling for
payment, with but $3.50 of interest to
pay, ana having an income of SS7. 800
| from water rates, licenses, harbor dues
and Police Court fines. The tax rate for
1877 could easily be reduced from 81 to
less than 81 %. In 1898 some more bonds
Will fall due, but you can readily see
that the water rates and licenses for that
year Will be substantially sufficient to
make the payment without the necessity
OF direct tax levy.
Thereafter no direct tax levy would be
necessary to meet the debt: on the con-
trary the water rates and licenses will not
only be sufficient to meet the annual in
terest payments, but will furnish each
Col Sso lAIQSLl dS gCO,OtU GAC0SS, 10 D6 QSCU
IN meeting general munici pal expenses.
In 1903 the last insIallment of bonds
Will fall due, and the water rates and Ii
censes for that year will be sufficient to
meet the debt-a debt that we cannot
meet before that time, should we so de-
sire. for 1t natures no earlier, and bears
such rate OF interest that its holders
would not accept payment of the money
were 1t offered to them.
Ia brief, il seems to me that the only
effect OF your plan of refundlng beneficial
to the city Is the escaping from the high
tax rate tor the one year of 1896, and 1t
also seems clear that all that is necessary
to insure the permanent prosperity of
Sacramento City, without big bonded
Indebtedness hanging over her, is to
stand up under the old tax rate for the
present and one more year, and thereaf-
ter all obligations can be met with a tax
rate of 81 % or less.
In 1895 the city issued bonds to the
amount OF u, 500, ,000 bearing interest at 8
per cent. per annum. The total of in
debtedness, principal and interest, which
the city has been obliged to IN some way
meet because OF this bond issue, has BEEN
including bonds not yet due, but exclud-
ing interest not yet earned, the enormous
sum of S4,7SS. .000 All this the city has,
in one way or another, disposed of, eX-
capt S640 900.
If our taxpayers have succeeded in pay
ing off over four millions, will they now
become discouraged over the prospect of
meeting but S6f0,000, and entail the pay
ment OF that sum Oh their children and
! their children's children?
There was q time when the city debt
could have been bought up at a large dis
count and refunded to advantage. That
time has long since gone by. There was
also time when fair amount of money
placed in the hands of the Funded Debt
| Commission as a revolving fund would
have enabled it to have controlled the
city debt, so that it might have been paid
OFT some years ago. That time has also
long since gone by. The city has thus
far valiantly met the obligations of this
old Indebtedness with the constant in
tention of disposing of IL forever.
The goal tor which she has struggled so
long is now in sight. Ought she now to
become faint-hearted, turn back and
agree to bear what is left of the burden
for another forty years to come, or would
it not be wisdom to make slight further
effort. and by so doing throw off the in
cubus forever?
What would have been said of a pioneer
of 40 who, by means of his slow OK
team, had with good courage, through
months Of toll, distress and danger,
travelled over the mountains and across
the plains until ne was well down the
western slope of the Sierras, if he had
then suddenly lost heart, believed it i'm
possible for him to ever reach California,
and had turned his worn-out team to
again journey through the desert?
1t is said that at the close Of the late civil
war many Of the negroes who had all
their lives been slaves could not trust
themselves with the powers of freemen,
refused to be emancipated. and volun-
n1 tn thni al l.
this the situation of Sacramento City 4?
Has she been for so long time at the thralI
of the bondholders that she has no desire
other than to remain in servitude to them
forever?
In conclusion, desire to express to
your honorable board my sincere thanks
for the opportunity afforded me of giving
expression to my views upon a question
so fraught with interest to our citizens
and taxpayers.
In 1868 gas was first employed as fuel