The record-union., 1898-12-17
HOPE FOR THE TAXPAYERS.
RELIEF FROM $I,OOO,OOO OF A
LONG-PAID DEBT.
The City May Soon Quit Paying
on a Debt She Owes to
Herself.

AT last there is relief in sight for the
long overburdened taxpayers of Sacra-
mento. For forty years they have been
paying interest and principal on more
than 81, 100000, and the burden has
been such an onerous one as to prevent
the city from advancing as she other
wise would have done in population
with its attendant benefits.
The first step looking to relief from
this incubus, aside from the peoples
constant demand therefor, was taken
yesterday, when Holl & Dunn, attor-
neys for Sparrow Smith and c. H
Cummings, Funded Debt Commission
ers, began an action against the City
or Sacramento, in which they ask for
an order of court authorizing them to
cancel and retire $1,0OOOOO worth of
the city's paid-up bonds.
The complaint opens with a recital
of the facts leading up to the issuance
of the bonds in 1853, by virtue of an
Act of the Legislature, approved in
April Of that year. The bonds amount
ed to in all ST 100000. bearing interest
at per cent. One-fourth thereof fell
due in 1888, one-fourth in 1893 and
one-fourth in 1895 The other fourth
1t sets forth that in March 1872.
there remained unpaid of said bonds
the sum of S1,53o.O .O00 together with
interest amounting to 1858. .O9S.
On the 23th of March, 1872, the Leg
1slature passed an Act entitled IAN Act
to provide for the redemption of the
funded Indebtedness of the City of
Sacramento" providing that all moneys
collected Hereunder shold be paid into
the City Treasury, and therein kept as
a special fund, to be known as the
Funded Debt Sinking Fund. This
money was to be paid out only on war
rants, signed by at least two of the
Funded Debt Commissioners of
which We're provided for by the Act
and indorsed correct" by the Presi-
dent of the City Board of Trustees.
The complaint goes on to recite in de-
tail all of the provisions of the said
Act, specifying and describing the
powers and duties of the Funded Debt
Commissioners, and all their acts since
1917, showing how, when and under
what conditions bonds We're purchased
and held by them.
The complaint states that with the
money thus received (from the city, for
interest coupons attached to the bonds
when purchased by the Commissioners.
ana detached coupons bought by them.
the Commissioners continued to buy
city bonds issued under the Act Of 1853.
and interest coupons originally at
tached to said bonds, the Commission
ers have bought bonds aggregating
more than S1,200,O0O, besides a large
amount of coupons.
The Commissioners then say that the
city's bonded indebtedness Is now being
rapidly paid and reduced, by reason
whereof they can no longer use 1aroa
sums of money to buy still outstanding
bonds or coupons. The bonds SO Dur
chased by them still bear interest. and
they Ghe Commissioners are still en-
titled to collect the same while the
oondS remain In their hands and uncan-
celed. But they cannot, they say, use
all the interest SO collected to any ad-
vantage or benefit to the city, and that
very little Of the Indebtedness can now
be purchased at discount ~r
(This fact has been repeatedly stated
by citizens who are not Funded Debt
Commissioners, and as repeatedly de-
MED In short, the admissions made in
this connection have been true of the
situation for many years past.)
The Commissioners say that after
canceling $1,O00000 worth of the bonds
now in their hands, including $4,000
worth of street Improvement bonds
they will still have an income from the
bonds and coupons remaining in their
possession to purchase all the outstand-
ing bonded Indebtedness Of the city that
can be purchased at a discount.
Wherefore it is no longer useful nor
for the benefit of the city to keep alive
and collect interest on so large a num-
ber of bonds as that now in their hands
and for these reasons they offer to sur
render Tor retirement and cancellation
bonds to the amount of S1,OOO,OOO.
Then follows list of the bonds nv
numbers, which it is proposed to can
eel, concluding with a PRAYER to tbe
court for an order authorizing and d.
recting the Commissioners to cancel the
same.