Daily capital journal. (Salem, Or.) 1896-1899, 1898-12-24
CITY FINANCES
sssuzrsss
The New Administration Is to Have
Absolute Authority to Act.
The Proposition to Reissue Floating
Warrants Voted Down-Popular
Loan Plan Favored.

together up 20 q late hour Friday
night at the city hall. IL was regu-
lar school OF finances, and satisfactory
psogress was made. Mayor = elect
Bishop stated how the work Ofscarpen-
terlng up Lew constitution for the
capital city had been begun and pro-
ceeded so far. He said the first rough
draft was now about ready. 1t was
patch work OF the best parts Of the
old charter, the Richardson charter,
the new Portland charter, and some
original sections.
The section on aldermen voting on
matters In which they are pecuniarily
interested was made clear and strong,
the penalty being expulsion. The
three committees created by Mayor
elect BishopRnd the Chamber OF Com
merce discussed the financial proYis-
ions of the new city charter. The
problem presented Is what TO do with
the floating debt OF $4,000 warrants
drawing s per cent.
Eugene Breyman presented q state
ment showing building warrants to
amount OF eli 900, general fund s5o, 900.
To issue per cent. warrants Ia place
OF 8 per cent. warrants would save
s447 q year.
Messrs. Eugene Breyman, Boothby,
Gesner and others favored issuing q
new crop OF warrants drawing but 9
per cent. and opposed all further issue
OF bonds.
Alderman-elecJ Riggs showed that
TO issue new warrants at 8 per cent.
10 place OF the old warrants with
accrued interest added, would run up
the interest about as fast as IL was
now running up at per cent. For
Instance, a el00 building fund war
Tant that has run five years would
draw sS 40 year Interest at 9 pei
cent. where IL now draws but SS 0
year.
John II. Albert offered an amend
ment as q substitute for the Brey
man proposition. which leayes The
mLtter or dealing with the fioatInG
debt entirely 10 the discretion OF th'
council. After showing that TO re-ls
sue warrants was illegal,he presented
his own plan. Mayor Bishop invited
the chamber CT commerce committee
j. NJ. Wallace and Others, To speak.
Then followed general discussion
at times growing animated, but en-
tirely friendly.
; Col. Hofer opposed 30-year bond
sold 70 Wall street. He showed tha
purchasers OF such bonds we're not
factor TO insure good government o
: lower taxes. 1.-THE city dsfaulted oI
Its interest, they would go into tn
/ federal courts and secure judgment
which would be followed at once will
a mandate levying a tax sufficient 4
pay on the whole AMOUNT, wit
the interest aud costs. III
opposed the Breyman plan because I
: would not stop debt accumulatlua
as the interest on warrarts could no
: Oe paid until the warrant Itself wa
taken up. He promised all his re
marks on the proposition that q ne'
administration would create no ne'
debt, but would get upon cash, pay
as-lt-went basis, and stay there. Ur
less IL did that all theories OF cit
!, finance were wasted breath. He Il
yOred no more long time bonds sol
abroad, Let the new administratio
get on cash basis, frame
revenue bill so that the city
receipts will exceed its eX
. pense, and then ask popular loa
r OF citizens here at home. Five or te
: year bonds with Interest payab
semi-annually, at 8 per cent can be sol
here at home, aud In ten years say
y S22, 500, and have no interest debt a
Ie cunulAting whatever. II sever
hundred Salem people hold the'
bonds In sums OF 900 to $1,000, a
J. Interest will be kept here and the
J. will become interested in the RoC
VI business administration OF the cit
= whereas nonresident bond holders
not care snap how the affairs OF u
city are managed.
Col. Hofer showed that there vi
no way at present for people to InYeI
their savings TO earn . cent OF lutte
est, Corporations, except nation
banks, paid no dividends. Sms
\ holders OF capital could not c0mpe
/. with the regular real estate mOn'
\ lenders, nor with the warrant dealer
\ The argument for a popular loan
the CITY Nna lnhnrsah hV nI her clfiro