The San Francisco call., 1897-12-20
Financial Crisis COnfronts
San JOSe'S COun-
ell.
Reckless Manner Of Incurrinq
Indebtedness Causes
the Trouble.
Several City Funds Inadequate tc
Meet Bills Contracted Against
Them.
Special Dispatch to The Call.

SAN JOSE, Dec. Blowing to the
careless and reckless manner in which
the various members of the Common
Council have incurred Indebtedness
against the city a financial crisis has
been created. At the meeting of the
Council tomorrow night the situation
will be discussed and an attempt made
to straighten out the financial affairs
of the municipality. AS matters now
stand many honest claimants are in
danger OF not having their demands
paid.
While about $4,000 worth of claims
were passed by the Council at its last
meeting there yet remains $4,000
worth to be acted upon. The delay in
reference to the unapproved bills is
due TO the failure of Councilman Dit
tus, one of the two members of the
claims committee, to attach his sig
nature to them. His reason for with
holding his approval is, he says, that
many of these claims were created
without due authorization. This, how
ever, is denied by the other members
Of the Council. There is every pros
pect that this difference of opinion
will be manifested at tomorrow
nights session in an emphatic manner.
There is no question that there are
many questionable bills now on file
with the City Clerk awaiting action
by the Council. On the other hand
much the larger portion of them is
legitimate.
The largest claim that will come up
for. consideration is that of Mabury &
Farrell, the contractors who built the
Julian street relief sewer. Their claim
is for $4,000. Some time ago it was
ordered paid out of the sewer bond
tund. The warrant was issued but
City Treasurer Ewing refused to cash
1t on the strength of the opinion of
City Attorney Welch. that the claim
could not be paid out of the sewer
bond fund, as the bonds were issued
Tor the specific purpose of building the
main outlet sewer and that the Julian
street sewer work could be paid only
out Of the regular sewerage fund.
The claim was again placed before
the Council in order to have a war
rant for it drawn on the right fund.
Then came charges of collusion
against the contractors who had bid
on the Julian street sewer contract
At this stage of affairs it became nee
essary for Mabury & Farrell to en-
plOy an attorney. Councilman NOlt-
ing last January, secured his sheep
skin from the Supreme Court, which
made him a member of the bar of the
State of California. Subsequently he
became associated with ]. w. Sulli-
van, well-knOwn attorney of this
city, and was a partner of that gen
tleman at the time the cOllusiOn in
VesugatiOn began before the Council.
"a In their search for a desirable legal
representative in this matter Mabury
& Farrell approached Mr.. Sullivan.
They were somewhat disconnected and
dfscOura ged when he asked the modest
fee of $1,000 to aid them in collecting a
claim for $4,000. They could not come
to terms and ultimately engaged w.
3. Hardy.
The investigation of the charges of
cOlIusiOn proved to be a farce. Moth
ing 10 prove the charge was developed.
Since then Noting has persistently
opposed the payment Of the $3200,
claiming that the work performed
was not worth more than $4,000.
Should all the outstanding claims
against the different funds be allowed
the Council will be confronted with
the fact that a number of the funds
will be inadequate to meet them.
There were outstanding claims to the
amount of $14,943 IL against the street
contingent fund before the last meet
ing of the Council, while the amount
of cash in that fund was only
81 fDZ Il. Against the sewerage IuTQ
there were claims to the amount of
s3429 95, while the cash in that fund
was only s17OS "a. There is also a
shortage of about $400 in the street
light fund.
Under the provisions Of the charter
it is unlawful for the Common Coun-
ell to incur, authorize or contract liza
bilities in excess of the amount set
aside in each quarter for the use of
the city. This provision can, how
ever, be suspended by a unanimous
vote of the members of the Common
Council for a period not exceeding
three months. A special meeting to
suspend this provision was called for
last Friday by the Mayor, but owing
to the failure of Councilmen Dittus
and Krieg to attend no business could
be transacted. The matter will come
up in the meeting tomorrow night
If the suspension is not carried it is
claimed that all claims in excess of
the amount available in the various
funds will he mil and void