The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1896-07-10
ASTORIA'S CREDIT
IS ATTACKED
Fears That the Limit Of Indebtedness
for the Municipality Will Be
0yerreached.
CITY's FINANCES ALL RIGHT
Special Street Improvement Bonds not
ehsrgsable TO General Indebtedness.
but Are Seeured by rToper-
~ Assessed.

there has been considerable agitation
In certain quarters over the state Of
the clty's finances. Merchants have
complained that city warrants which
they took in trade. and street bonds,
could not be sold. even at a heavy dis
count. Matters spread beyond the city
and others have made inquiry concern
ing the difficulty. The credit Of the
city is more or less affected The two
letters following. written by Portland
bankers, to Mr. Higgins. OF the Astoria
National Bank. tell their own story:
Portland. Or. July 1st. 1896.
]. E. Higgins, Cashier. Astoria, Ore
gon:-
Dear Sir: Since We have purchased
Astoria city warrants we understand
the city has issued quite a number OF
bonds for the purpose Of building roads.
grading. etc. and that they contem-
plate issuing In the neighborhood Of
$4,000 more to grade a road over TO
Young's Bay to open up that property
so the spectators will be allowed to
sell their real estate. This is an out
rage and It should be put down. We
have today forwarded TO the auditor
and police judge statement we desire
to have him I'LL out for us. and we are
afraid the city has already reached the
limit OF Indebtedness. II that is the
case, the warrants Of the city OF Asto-
ria will be worth so cents in the market
instead OF IS. and 1t will be absolutely
impossible for US to continue the pur-
chase Of them without they stop issu-
ing these bonds.
Kindly see that the auditor returns to
US a true statement. and II possible.
use your influence with the council to
have them cease issuing the bonds
contemplated for the building Of these
roads. This Is quite serious matter
for your city. and the property owners
should put their foot down and not
allow the city to obligate itself by is
suing bonds at the present time for
such purposes as this.
Portland, Or, July 9Th. 1896.
]. E. Higgins, Cashier. Astoria. Ore
gon:--
Dear Sir: Replying to yours OF the
srd inst. we have today paid your
drafts for warrants accompanying the
same, and note your remarks regard
ing the legality Of the city of Astoria
bonds and warrants. We have to say
that the bonds as issued by the city
are direct obligation upon the city.
The bond OF itself shows that upon its
face. We do not care to purchase any
more of the city OF Astoria warrants.
Kindly bear this in mind. ANY counties
you have we would be pleased to have
you forward them TO us, but We cannot
afford to buy city paper where they
are issuing a direct obligation upon the
city for payment of any special i'm
provement.
An Astorian representative. after
carefully canvassing the situation,
found that there is no cause for appre-
hension. and that the gentlemen who
wrote the letters above are no doubt
laboring under a misapprehensioh. Un-
der the charter Of the city Of Astoria
the limit OF its bonded Indebtedness is
100000. There is special provision,
however in the charter. the terms Of
which are familiar to most Astorians,
which permits the city to incur obli-
cations for certain purposes. the prin-
clpal one Of which Is the present meth
cd of street improvements by which
credit is extended to property owners
for these improvements, or in other
words the city lends money to the
property owners for paying their as
sessments for street improvements, and
receives 1t back upon the installment
plan 1t is to be distinctly borne in
mind that these advances are charged
against the property assessed for street
| improvements, and that II a property
holder fails to pay his installments.
the city is amply secured, and that
obligations of this nature assumed by
the city and for which bonds are issued
by the city and sold. are not obliga-
tions chargeable TO the bonded indebt-
edness permitted by the city charter,
and do not increase that Indebtedness
by one cent.
The present bonded Indebtedness Of
Astoria is $1S5.S6S.45. There Is little
over $4,000 cash on hand, and $S,24O
street Indebtedness which would leave
the total bonded Indebtedness Of the
city less than $175,OOO. The street
bonds issued, which are outside Of the
regular bonded Indebtedness of the
the city are not illegal and in no way
affect the general credit Of the city,
Even should the property owners fail
to pay their installments for street i'm
provements, these debts. which are
practically guaranteed by the city, will
in due course Of time take care Of
] themselves.