The record-union., 1899-09-17

the city, represents the actual cash
viz: 81, 1873 1910 plus the amount re-
turned to the Treasurer. $352. 10, MAX
ing total saving of 81, 1879, ,0S6S0.
During the twenty-seven years of its
existence the commission has incurred
an expense account of S7,101-40. but
s., 1925 of this amount was for the
expenses of cases i'm court which were
wholly in the interest of the city. be-
longed in no way to the work of the
commission, and should this have been
paid out of the general fund of the
city would leave the legitimate ex-
penses of the commission for the entire
period of it's existence at S4,90S.5o, or
about 30 cents a day.
1t should also be remembered that
the commission has rendered valuable
assistance to the city in providing
funds to grade the streets, repair the
levees and build the street sewer, by
taking the new bonds issued for these
several purposes. when no one else
would take them
There has been an impression in the
minds of some of our citizens that the
Funded Debt Commission was, in some
way, responsible for the annual tax
levy of i per cent. and the appropria-
ton of % per cent. of this levy and a
like amount from the proceeds of the
licenses, water rates. harbor dues and
police fines. This rate of taxation was
made expressly for the purpose of pro-
viding sinking and interest fund for
the payment of the annual interest and
the final oytip0uichpoanf of the old
bonds, and was agreed upon when the
old city obligations We're refunded and
this bonded debt was created, and was
part of the contract between the hold
ers of the claims against the city and
the city. This contract was made and
entered into twelve years before the
Funded Debt Commission came into ex-
istence, and was insisted upon by the
bondholders. and this commission had
nothing whatever to do with it, and
was utterly powerless to modify the de-
cisions of the Supreme Court, that, by
its direct mandate enforced it,
1t was because that the funds provid-
ed even under so heavy a levy were
not sufficient to meet the annual inter-
est that this commission was called
into existentce. During all the period
of the existence of these old bonds un-
til January 1, 1898. the city has never
had, at any time sufficient funds to
meet the annual interest when due, and
at one time the annual interest pay
mentS were over ten years behind.
Consequently it is fair to state that
II there had been no such commission
IN existence and the city had been left
to the usual course of liquidating it's
debt, it would have owed on January
1, 1S9S-the first time it had sufficient
funds on hand to pay up all back in
terest-the entire outstanding bonded
debt of 81, ,535.9OO
If the contention of the city in the
case of Kendall VS.. the City Treasurer
that the past due bonds did not bear
interest after maturity-had been sus-
tanned by the Supreme Court, the city
would have saved S1S5, ,02S. rs in judg-
ment interest that the commission has
paid on it's purchases of 1883 and 1893
bonds.
We congratulate our citizens upon
the present favorable condition of our
city debt. While it is possible that
some other method might have been
provided for its extinguishment among
all the plans suggested, there was no
other upon which the citizens were able
to unite, and this method, devised and
put into operation by the late Judge H.
O. Beatty, who administered it with
answering fidelity during the earlier
and critical period of its existence, and
until his death, and who ably defend
ed it at all times. has. in it's final re-
suits, wholly met and justified the ex-
pectations of its friends, and should
be a lasting monument to it's honor
able author. SPARROW SMITH,
G. Fl. CUMMINGS.
Funded Debt Commissioners.