The San Francisco call., 1899-11-01
GOING INTO DEBT.

T is an old saying and true, that Governments and
individuals make debts in good times to be pala
in bad times.
San Francisco may not be able to boast OF much
in the way OF municipal Improvements, but she can
boast ~ almost entire freedom from municipal debt
With this immunity from the burden OF debt, how
ever she has also the finest public park in the world
and her farstreched streets bordered by as fine
private improvements as any city boast.
No one objects to a reasonable expenditure for
other public Improvements, nor to reasonable bond
issue therefor but the peculiar campaign made by
Nh Phelan seems to ambush a sumptuous and
luxurious programme and gay carnival to be enjoyed
on the proceeds OF mortgage to be put upon the
city to the amount OF many millions The volume
OF debt suggested runs from minimum OF say FIVE
millions to a maximum OF twenty-five millions, and II
the project be entered upon it is likely to be the
greater than the less amount If that be its volume
will be that the interest to be paid annually
sum so large that if it devoted directly to
needed public Improvements without issuing bonds
at all it would, if levied annually during the same
period as the life OF bond issue, produce more
money for public use than the original principal Of
the bond issue itself While we are opposing any
ready means that will effect such Improvements as are
needed, we desire to call attention to the most
cNOtOi-iiOdI 4LClIiON u e4itOtIl4s tiiCAll'
Tie Democratic programme is singular in that it
defeats one of the purposes to which it gives first
place Nj Phelan advocates public ownership OF
public utilities which are gas and works and
street railroads To buy these public utilities, which
are already in existence and belong TO their stock
holders or to create their equals in capacity to serve
the public in their several ways will require
lay OF many millions OF dollars
If this outlay be added to an existing bonded debt
OF millions laid for the purpose OF public improve
ments which under existing law must be made by the
city, there will appear bonded debt San Fran
cisco sufficient to satisfy the most extensive fancy
We are OF the opinion that the people will require
trial OF the experiment OF public ownership of many
OF our public utilities. Public opinion runs that way
and has much argument to sustain it But when that
policy installed there will occur two things. These
public utilities they exist contributing tax
PAYERS. Then they will to contribute, except
through their business plants II the scale
OF upon which they is set at the point
OF profit to the city the surplus they will yield will
add TO the public treasury But it is hardly to be
pected that this scale can be such as to fully recoup
the treasury after paying interest upon the investment
Their operation by the city government will be Of
course political and dollar limit experience shows
that party platforms will leapfrog each other in prom
ising the voters lower for and gas and
streecar fares Whatever deficit is lett between the
profits paid by these utilities and the present de
rived from them. will OF course be made up by taxa
ton OF private property
So when Improvements and public ownership OF
public utilities are discussed it all back to the
issue OF taxation. Just how far city go in con
tracing debt before the benefit derived from the pro-
ceeds OF bonds is nullihed by the rate OF taxation is
question always OF vital interest and needul OF cool
deberaton.
Politicians who candidates for Office get heated
in the running and frequently over-promisc beyond
the capacity of the city perform and protect its in
terests. One thing is sure. The experiment Of pub
lie ownership OF public utilities will be tried IN San
Francisco, and it will be tried under circumstances IN
favorable to its if it have be added to an
existing load OF large bonded Indebtedness There
fore proposed policies should not be permitted to
neutraize each other should the mere tricks and
tactics OF politicians be permitted confuse the pub
lie mind the straight way all that is required
by the public interests