The San Francisco call., 1907-06-02

supreme court before bond buyers
would be willing to purchase the
twelve millions of unsold city bonds.
For this reason, 1t is my opinion that
the charter should be amended SO as to
authorize the board of supervisors to
cancel the existing unsold bonds. The
limit of bonded indebtedness, 10 per
cent of all real and personal property
should probably be increased to 20 per
cent The provision of the charter re-
quiring bonds of the character known
as serials is Objectionable and should
be changed.
DELAY MUST BE AVOIDED
A constitutional amendment was rati-
fed by the people, which will permit
San Jose and San Francisco to issue
bonds to run not exceeding 20 years.
and in order that there shall be no
conflict between the constitution and
the charter, the language of the char
ter should be made to conform to that
of ethe constitutional amendment. AS
1t is important that San Francisco lose
as little time as possible In amending
its charter and in authorizing Its bond
issue every possible legal precaution
should be taken so as to ooviate the
necessity of the supremes court pass
ing on the validity of the charter
amendments and the legality of the
bond issue. For this reason, the pro-
visions relative to the issuance OF
bonds should be made with the greatest
care and in the clearest possible Ian
guage.
with this thought in mind. we be-
lieve it would be advisable to make
careful study of the provisions relat-
ing to bond issues in other charters
which have been passed upon by the
courts. Provision should be made 80
that any bonds authorized may be sold
at the best obtainable price, regardless
of par, after advertisement IT wouid
be advisable to authorize the interest
on the bonds to be made payable In
New York as well as in San Fran
cisco. Careful study should be made
regarding the purposes for which bonds
may be authorized.
LANGUAGE SHOULD BE CLEAR
The two provisions Of the charter
relating to the issuance of bonds are
to be found in article IL. relating to
the acquisition of public utilities, sec-
tions to 13 inclusive, pages 127 and
12S of the charter, and article 16, sec
ton 29, pages 143 and 144 OF the
charter. Section 20, which is the gen
eral section, provides that when the
supervisors shall determine that the
public interest requires the construc-
ton or acquisition of any permanent
municipal building or Improvement. the
cost of which, in addition to the other
expenses of the city and county, will
exceed the income and revenue pro-
vided for the city and county for any
one year, they must. by ordinance
passed by the affirmative vote of not
| less than IA members of the board. sub
nit proposition to incur a bonded
| Indebtedness for such purpose to the
electors of the city and county at n
special election to be held for that
purpose only.
Grave doubt exists as to the meaning
of the word Improvement" The Ian
guage of the charter should be madc
so clear that no question can arise as
to the purposes for which bonds may
be authorized. In the present situation
of our property owners, the provisions
of the charter relating to the widening
of streets, the construction of sewers
and the creation of assessment dis
tricts cannot be counted upon to make
many improvements. If permanent i'm
provements of moment are to be made,
it must be done from the proceeds of
the sale of bonds, instead of assess
ments levied upon property owners. IT
any streets are to be widened, author
ity should be given whereby the board
of public works, with the consent Of
the supervisors, shall be authorized
to purchase the needed property and
improvements Of streets. The Ian
guage OF the charter should be clear
so that general improvements of this
nature may be authorized and payments
for same made from the proceeds OF
the sale of bonds.
PROGRESSIVE PAYMENTS
AS the charter now stands there is
no provision for progressive payments
for work to be done for the city. This
results in keeping many contractors
from bidding on public work and also
increases the cost of such work. When
the United States government lets a
that progressive payments may be
made. Ten per cent is held back un-
der government contracts. Under our
mechanics lien law. where work is
done for private individuals, 25 per cent
of the contract price Is withheld until
after the work is completed. believe
that the charter should be so amended as
to allow payments to be made for public
work as the work progresses. The city
can properly protect itself by bond and
also by holding back a part Of the con-
tract price until the work is finally
accepted.
Chapter III, article s, provides the
machinery for the Strengthening,
widening or extending of streets and
for the laying out or opening OF new
streets. and also the proceedings for
the change of grade or streets. 1t is
made jurisdictional that there shall be
an application for the strengthening,
widening or extending OF any street or
for the laying out, establishment or
opening of new street, signed by the
owners OF a majority of the frontage
of the land on the line OF such street
or proposed street. This section fur
ther provides that no proceedings shall
be had upon the fling of an applfca-
tion of this nature until after the per-
sons signing the same shall have de-
posted with the secretary OF the board