San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-12-16

of the city management discloses sc
much carelessness and Indifference as
this of our sinking fund.
1t is in evidence that past admins
trations neglected to levy sufficient
tax to cover sinking fund and other
charges, because of political reasons
to deceive the people as to the tax
levies, and prevent them from revolt
ing against high rate of taxes.
/
When bonds are issued the constitu-
ton Of the state requires that sink
| ing fund shall be provided for their re-
demption, at least two per cent on
the amount, but this amount would be
insufficient for short term bonds; our
bonds run from ten to forty years, our
ten year bonds could not be redeemed
in ten years by levy of two per cent,
but there is a provision in the charter
for re-issuing bonds to cover bonds
becoming due. In fact, each tax levy
should provide for sinking fund suf-
ficient to redeem all bends becoming
due, at maturity. This has evidently
never been done, thereby impairing
our credit, or ability to extend our
credit.
There should be in the city treasury
today at least 100000 to the credit
of the sinking fund, represented by U.
s. bonds, state or municipal bonds,
money actually collected and handed
over to the treasurer as sinking fund,
but we find no such account either in
the auditors Office where the city
books are kept, or in the treasurer's
office, where the money is kept.
The city charter, under which all
the city government is run and from
which all the authority to run city
government is derived, in section 43,
sets forth in plain terms all about the
sinking fund.
"And when any bonds are issued by
the city fund shall be provided to
pay interest, and two per cent per an
mum on the principal as sinking fund
to redeem the bonds, which fund shall
not be diverted or drawn for any 9TH
er purpose, and the city treasurer shall
honor no draft drawn on said fund
except to pay the interest or to re-
deem the bonds for which it is provid-
ed"
"Ihe sinking fund for the redemption
of any loan or debt to be invested as
fast as the same accumulates in Uni
ted States interest bearing bonds
bonds of the state Of Texas, or in city
bonds, and such bonds and the inter-
est Of such bonds to be reinvested, and
to be sold when necessary, to pay debts
or loans"
Thus it will be seen that the sinking
fund is a sacred fund, and cannot be
diverted or used for any other pur-
pose than for paying the debts which
the people have imposed upon them
selves, and yet for twenty years our
city government has kept no account
of the sinking fund, or made any pro-
vision for its integrity, leaving to the
future the provision for this important
item, and using up the money collect
ed from the people for this purpose.
An inquiry at the collectors Office
divulges the fact that in As months
from March '93, to date, $4,000 have
been collected from the taxpayers for
interest and sinking fund; this has all
been absorbed for interest due on
bonds, and the sinking fund has ceas-
ed to be an item on the books Of our
auditor or a fund in the possession Of
our treasurer.
From the reading of our charter the
treasurer would seem to be RESPONSE
BILE for all the sinking fund turned
in to him. but he will contend that no
such fund as q distinct and separate
fund has ever been paid him.
No matter who is responsible-all
administrations from 1880 to the pres
ent one are responsible for this care
less, reckless management Of our city
finances.
The people should rise up in their
might and place an administration in
Office not afraid to correct these things
determined to preserve the credit of
the city and provide for the debts we
have contracted. II we do this there
can be no fear Of bankruptcy. How
to do it will be the object of these ar
ticles TO illustrate.