The evening herald. (Klamath Falls, Or.) 1906-1942, 1911-10-19
n)SsIBLY this city is losing great
J deal more money by its financial

deal more money by its financial
condition than tho public 10 aware,
II certainly Is losing moro than Is
being lost by those who are doing
business with Il. for every man who
does business with the city. II he has
ordinary business sagacity, Is going
to try to see that he 10 not going to
run behind by dealings with tho mu-
nicipaiity. and that no breaks oven In
the long run.
There have been complaints In the
council meetings Of bills presented for
city work being too high. or that the
cost Of supplies furnished was too
high. II has been hinted rather
broadly that certain people who have
been doing things for the city have
charged Il more than the market
prices.
ID II any wonder II they have been.
II you undertake to do business
with the city on q basis where you
have to be paid. unless you are ~ In
nocent - . uew.laid egg. you viii
know that the city has no money. and
Is In debt.
You will also know that II you arc
given q warrant on the Pine street
fund that there IL no money In that
fund to meet the payment. and that
you might as well turn the warrant
to the wall so far as early payment ID
concerned. You cannot discount pine
street fund warrants.
II you are given \ warrant ON the
general fund you can very likely dis
count II at q sti6 rate, probably 30 to
90 per cent. II you are a business
nan. you know that this rate OF dis
count will kill any ordinary profit
and you want n price on your stun
that will bring you out even when
you have discounted the warrant.
when tho city pays this excessive
price for Its work and supplies that
Is one excess too many. II should n
In q position to pay It's bills and got
things on cash basis the same as yol
ought to be.
After this warrant 10 discounted thu
holder Of Il, who bought Il for thu
profit he will make out OF Il. storci
Il away and expects u. after protest
to draw interest until paid. Whei
the city pays this warrant II Is payin,
out a double excess over what .
would II II bought goods and paid to
them. for II pays the face OF the Sar
rant, which Ii above the cash valu'
Of the goods or labor for which II 4
to compensate the drAwee. and th'
interest on the face amount In add
tion.
There is no doubt that some ioya
merchants and others are taking the,
chances with the city. and doing busi
ness at market price. depending OF
compensation for their walt In the 10
terest on the warrant. But how abou
those who need cash! They canno
tie up their labor or stock or an
portion OF II In an Investment viii
the city. They have TO have none
right away and must figure on allow
ing the discount.
The result 10 that the city when al
is said and done. and II pays the bill
that are piiing up against II ever
day. will be paying for some thins
at IS and possibly 80 per cent nor
than they would cost anyone els
whose credit II good.
An emergency bond issue Of som
kind IL suggested a. a way out OF thi
mess.
Bonds can be marketed at 70
cent. and II would be an excel'en
thing for klamath Falls to considc
seriously whether II were not hatse
TO issue bonds to pay Oh the eoafin
dept. which Is growing greater ever