The San Francisco call., 1899-01-28
SeaWaII Bond Bill Passed to Third Read
ing in the Senate.
After an Animated Debate, in Which Members
From the South Tried to Kill 1t, the
Measure Was Sent On

! State of California shall be preferred pur-
| chaser at par of the whole or any portion
| of any issue of said bonds"
Senator Braunhart said the amendment
was not unsatisfactory to him unless IT
would have the effect of making the bill
special legislation and therefore uncon-
stitutional. He wanted to know If the
State could purchase its own bonds. He
thought that the regents or the state
University or the State Board of Exam
iners might be authorized to make, pur-
chases, but the word State he deemed
little too large.
Senator RoweH offered an amendment
making the regents of the State Univer-
sity equally preferred purchasers with the
State of these bonds.
Dr. Rowell in support of his amendment
stated that no better investment of uni
versity funds could be made than In these
bonds.
Senator Bulla, in opposing DR.. RowelfIs5
amendment, stated that he had at all
times worked and voted for the good OF
the State University But ordinary pup
lie schools he said, were maintained by
direct taxation. High schools We're not
for the reason that 1t was agreed that
the people at large should not pc taxed
for higher education. Yet the state mad
Jumped all over the High School propo-
sition and had taxed the people qIrectly
for the maintenance OF the state OnlVer-
sity which was even higher than the
High Schools.
Senator Simpson wanted to know II IT.
was the proper thing to bring stare
in direct competition with its people as
a purchaser.
Senator Bulla held that there was no
competition, and RowelPs proposed
Senator Smith was Of the opinion that
the university regents should be allowed
t9 sa Gm SAID ID the as the unver
sity regents never accounted to the State
for any of their expenditures 1t was not
really department OF the state govern
Senator Simpson opposed the PROPOSE
ton of making any preferred purchasers
sAsA~ sN,N. arN VaCffT
with its people To sell interest bearing
bonds to the State at par when the same
bonds would in the open market prlng
Chasing bonds above par, which the State
could purchase at par. Senator Simpson
opposed the amendment and said he was
also opposed to the whole bill.
Senator Bulla'S amendment making the
rate of interest on the bonds S12 per cent
| and making the State preferred creditor.
An amendment by Senator Smith, pro-
| viding that voting by the people on this
bond issue be under the Australian ballot
Senator Smith moved to entirely strike
out section II of the act providing for the
publication of the act IN two San Fran. an
| cisco newspapers, two Los Angeles pa
pers, one in San Jose, Stockton and sac
ramento. The amendment was adopted,
Senator Cutter endeavored to have the
rate of interest to be paid on the. bonds,
reduced from 312 to per cent. s.
Senator Braunhart thought that diff
bonds at par when they bore interest at.
only per cent.
Senator Simpson, anxious to defeat the
bill and its purpose, favored the PROPOSE
ton to reduce the rate of interest ~
Senator Cutter claimed that Massachu-
setts, which State had a heavy debt, sold
fornia was a wealthy State, had no debt,
and the impression should not go out that
in order to dispose of its bonds they must
necessarily bear high rate of interest.
Senator Morehouse called attention to
the fact that an amendment had been
adopted making the bonds a popular loan,
but If the rate of interest was further re-
duced that purpose would be defeated.
Senator Burnett and Senator Dwyer
both held that Senator Cutters amend
ment was calculated to defeat the pur-:
pose of the bill.
Senator Cutter opposed the proposition
of fixing the State rate of interest at 315
per cent. He demanded q rollcalI and.
thereupon found that his amendment was
defeated by vote of, to II.
Senator Smith then moved that the bill
be refused engrossment He said he made
the motion, not to kill the act, but to-
give the Senate time to think about it.
He said that not newspaper in the
State that he had ever seen had expressed
itself as favoring the issuance of State
bonds for improvement purposes. If he
was not given time to study the bill and
If time was not given to hear from the
public press, he proposed to vote, on for
NAL passage, against the bill.
Senator Boyce concurred in what Sena-
tor Smith had said.
Senator Braunhart in response to Smith
said that every merchants association in
San Francisco had declared in favor of
his bill. Public opinion in the States
metropolis was an absolute unit in favor
| ofo the bill.
Senator Smith endeavored to withdraw
his motion that the bill be denied engross-
ment but Senator Cutter objected
| Senator Simpson and Senator Braun
hart had personal tilt as to who was en-
| titled to the floor. Senator Simpson in
sisted on speaking. but he was speaking
consideration of the bill go over until
some future time.
This motion was lost, and by vote OF
| 8 to 20 the bill was advanced to third read
| ing by the defeat of Senator Smiths mo-
| ton.