The herald., 1897-12-07
OFFICE OF THE HERALD.
Los Angeles. Dec. G. 1897.


The voters Of Los Angeles city are
called upon to pass upon two proposi-
tions. The first Is to give the existing
board of education the handling of $780,
600, which is the amount of per cent
school bonds proposed to be issued,
about one-half Of which sum is to be
spent for high school purposes. Recent
developments have made it extremely
improbable that the proposed issue will
be voted. The second proposition is to
borrow $150,0oO with which to purchase
sites and build new engine houses for
the fire department. The city Is pay
ing out large sum for the rental of a
number Of engine houses now in use, and
II would seem to be an economical move
for 1t to own its own engine houses.
The New York Bond Buyer says Of the
municipal bond market: We look to see
unprecedented offerings of first-class
municipal bonds at higher rates of inter-
est than now prevail, for the supply IN
1898 Is certain to be increased. We are
confident that the steadytgrowth Of the
last few years in investment in munich
pals will continue during 1898. In 1854
the total sales fell below 100000, 900. In
1896 they reached Sill, 100000; in 1896 the
total was $1s4,O0O,OoO. Since the return
of business to it's normal condition after
the. election of 1896. there has been sold
to November 1st $3.50. 900, 900 of municipal
bonds.
Cambridge. Mass, has just disposed of
e176.O00 worth of municipal bonds bear
ing 311 per cent interest. The figure OBJ
tained is not given but the next highest
bid was 104.271. Other bids were 104.07
and 10S.sS7; all of which speaks eloquent
ly for the credit Of Cambridge.
4
< Upon the subject of bond issues up to
the limit Of city's legal ability, the
Bulletin has these sensible remarks:
The New York limit on municipal In
debtedness is 10 per cent on its assessed
valuation. Its present valuation is ST.
S00.000,O00, which gives New York bor-
rowing capacity Of $1so,oOo,oOO 1t has
outstanding bonds of $210.0OO,0O0,
against which is a sinking fund Of $S2,-
$1,000. Its net debt, therefore, Is $685.
000, ,0OO-$52, ,OOO 900 less than its limit. a
proposition Is now under consideration
a., npo ~ tho oo,,rtS to copStruct n :, nm
derground railway throughout the en-
tire length Of the city. The question the
court has to determine is If the construc-
tion of the road can be carried on with
out exceeding the debt limit. The sug-
gestion that danger attends the issue
of bonds so nearly up to the limit as will
be necessary to prosecute this work is
met by the assumption that the assessed
valuation OF New York will increase in
the future as it has In the past. This
depends upon certain conditions that the
people, of New York cannot control.
projects are on foot to divert trade now
possessed by New York to other cities.
The high taxes made necessary to pay
interest on $1sO,OOO 900 or thereabouts
will prevent New York from being
cheap port. The fact that the bonds
serve the purpose of a first mortgage on
all property in New York whl tend to
prevent a speculative rise In values.
The mischief of bond issue is that
when the limit is reached. and no more
bonds can be issued. payment of interest
and current expenses must come out of
the current revenues. A blanket mort
gage on the property of city is apt to
serve as a wet blanket on a city's
growth and prosperity.
/, s.s a.. .,o 4 4
J, The bAnkscommissioners have issued
circulars to all banks in the state, call
ing upon them to prepare and send in
statements Of condition as of November
3Oth. The prior statement was for July
S1st.
x The Calumet and Hecla Copper Min
Ing company Of Michigan has declared
b dividend of $40 per share, equal to
81, 900, 900, payable on January 2, 1899.
This makes $50 per share for account
of the current fiscal year, beginning
May list, and $50 per share for the cal
endar year Of 1897. This Is the best
performance in the history of this big
and rich corporation. Two other Mich
igan copper mines pay dividends on the
31st of December.
' 8 Il \
The so-called assessment companies
have In recent years, largely under the
compulsion of stricter state regulation,
sought to place themselves on a more
substantial basis, says writer in an
eastern journal. And yet 1t cannot be
denied that the drift of the tide is
against the assessment companies as
they have been constituted in the past.
Life insurance to really insure must
cost more than the assessment compa-
MES believe 1T should. The great as
sessment associations like the Massa-
chusetts Benefit and the Bay State Ben
ef1ciary, which thrived for SO many
years, and which were placed upon what
was deemed to be a very substantial
basis, have had to meet the fate that
has befallen so many of their predecess-
ors.
It may be set down as automatic that
the life insurance business cannot be
done on any plan which does not pro-
vide for the future as we'll as for the
present. Who has not been victimized
by some Of -thepb brood of mushroom
e.