The San Francisco call., 1897-12-13
San JOSe'S Council to
Consider Claims
Tonight.
Alignment of the Members as
Rea or Anti-Rea
Officials.
Each Side VIII Attempt to Prevent
the O;her From Getting
at the Cash.
Special Dispatch to THE CALL

SAN JOSE, Dec. 12.-Ever since the
new charter went into effect in the city of
San Jose misgivings have been expressed
as to what would be The effect of its oper-
alton on the financial condition of the
municipality. One of the most stringent
provisions is that no legal inde btedness
can be created in any one quarter in ex-
cess Of the revenue for that quarter. I'm
der exceptional conditions however, he
Common Council is gwen power TO sus-
pend this provision. This section of the
instrument is now under suspension, but
even with this safety-valve open grave
fears have been circulated that the city
would not be in position 10 liquidate lis
Liabilities at the end OF the present calen-
dar year.
The new charter went into effect in
April, but there was no precaution taken
TO put the affairs of the city at that lime
on q cash basis. To have done this would
have required the issuance of bonds, and
it was feared that a bond provision in the
charter would have prevented the adop-
tion of that instrument, though one of
the sections of the charter contained the
cash basis proposition. In order that
this condition might eventually be
achieved the charter further provide for
the setting aside from each years revenue
of per cent of all moneys received, the
fund so accumula lated to be known as the
cash basis fund. 1t was hoped that in
this way the city would be able TO pay its
daily way a the end OF ten years, with
economical management and the addition
of surp uses that accrued each year.
No claims except those that grew out of
contracts and the regular salaries of Off
GERS have been paid since the adoption of
The charter, as the payment OF taxes, the
most prolific source of revenue, was not
due until the early part of this month.
During all this PERIOD claims accumu-
lated in large mum bers, and no one made
II his business to make an estimate of
what proportion they bore in the aggre-
gate to the expected revenue of the city
for The period ended with the last day of
the present month.
All the revenues of and all the claims
against the city to the end of 1897 are now
practically ins and from estimates based
on the official statement of the CITY
Treasurer and the City Clerk, all claims
being filed with the latter, it can be stated
that there is virtually enough money in
the city treasury to pay every claim
against the city, though some of the spe-
cial funds viii be inadequate 10 meet all
the demands that are row on file against
them. Some OF the claims tied, however
may not be allowed by the Council.
There are eight funds against which the
claims on file with the City Clerk will be
drawn. These funds in the aggregate
amount to $532 81 The claims against
them aggregate So 937 66, leaving a sur
plus OF $23l 81. MAJ or Koch a; ons time
estimated that there would be claims
against the city 10 the amount of S94 900
by the end OF this year. In the attached
anle will be found the amount OF cash in
and the amount of claims against each of
these funds: