anaheim-gazette 1920-05-13

AVOID RECKLESS ISSUANCE OF BONDS WILLIAM HENRY HOYT OF NEW YORK TELLS SOME POINTS TO BE OBERVED Recommends Limiting the Power to Incur Debt, But Not the Power to Pay a Debt—Time of Paying Shall Not Extend Beyond Usefulness of Improvement Of all the powers generally conferred by law on a municipal corporation, none is more likely to be misused than the power to raise money by issuing bonds payable in the distant future, according to William Henry Hoyt, in a speech before the League of Municipalities. For example, municipal officials often have a propensity for keeping down the tax rate while they are in office by issuing long-term bonds for current expenses; and taxpayers of the present are often quite willing to shift their burdens to taxpayers of the future. The serious consequences of such abuses are obvious. The courts therefore generally hold that the power to issue bonds is not to be implied, but must rest upon an express grant by the legislature; and the legislature generally safeguards the exercise of the power by numerous restrictions. Sometimes these restrictions fall to deal with fundamental matters. Some manure in the parks. Today 40-year bonds for 10-year roads are common. Bonds for roads should never run so long as 40 years. In my opinion, the general law should, in the third place, require all municipal bond issues to mature in annual series or instalments, and should abolish the sinking-fund system for future bond issues. The cost to the community of issuing serial bonds is exactly the same as the cost of issuing so-called "straight" or "sinking" fund bonds, maturing all at one time, provided the sinking fund earns interest at the same rate that the bonds bear. But in point of fact municipal sinking funds are not usually maintained as they should be, and it has seemed to be impossible to prevent mismanagement and losses of such funds. Again and again the absence or insufficiency of the sinking fund makes it necessary to refund the bonds at maturity and to postpone the payment of the debt to a date long after the expiration of the life of the improvement for which it was incurred. Bond dealers and investors now understand serial bonds and look upon them with favor. It is noteworthy that Massachusetts, New Jersey and North Carolina require all city bonds to be issued on the serial plan. In the fourth place, the administrative code should not only insure the final payment of new bond issues at maturity by requiring serial payments, but should provide a definite plan for establishing and maintaining sinking funds for old "straight" bonds. This could be done as it is done in New Jersey, by placing municipal sinking funds in the hands of a local sinking-fund commission independent of the local authorities, by creating a new state officer to supervise the maintenance and administration of sinking municipal enterprise. I believe that the Virginia constitution high were it not very difficult to ex-sustaining enterprise of the limit. To the view that the territorial limit limit upon the political subdivision territory may incarnary debt limitation same territory, extend up to the limit. Ishes an interesting they have an 8 city and a 15 per territory embracion. The sixth provisor put in the general municipalities would all municipal bond obligations of the payable out of taxable property without regard to scribed by law. incur debt, but not the debt. Every her to pay will be a ket price of the palities will find it to secure the pay by the pledge of it though it is proper funds other than them. THE CAVE The cave man's chance for fame me heard of her. With his club and his eccentric but woofing and his quite willing to shift their burdens to taxpayers of the future. The serious consequences of such abuses are obvious. The courts therefore generally hold that the power to issue bonds is not to be implied, but must rest upon an express grant by the legislature; and the legislature generally safeguards the exercise of the power by numerous restrictions. Sometimes these restrictions fail to deal with fundamental matters. Sometimes they are unnecessarily restrictive. Sometimes they are so complicated or couched in such uncertain terms that great difficulties arise in determining whether the law has been complied with. The general municipal administrative code to which I refer should, in my opinion, permit the issuance of bonds for the purpose of financing any capital expenditure which the city is authorized by law to make, and should permit the borrowing of money in anticipation of the sale of the bonds, provided the bonds have first been authorized by appropriate proceedings of the city. Many years ago, as a result of reckless issuing of bonds by states and municipalities in this country for aiding railroad and canal companies, the view prevailed in some quarters that bonds were not legitimate instruments for financing the needs of local governments, and should be prohibited. One of the few surviving reminders of this idea is a provision in the constitution of Arkansas which prohibits municipal bond issues in that state. Another is the prohibition of municipal aid to private corporations, to be found in most of our state constitutions. Today, the opinion is practically unanimous that the power to issue bonds for municipal purposes is absolutely necessary. Although I favor a broad grant of power to issue bonds for all capital expenditures, that is to say, for public improvements having a period of usefulness extending into future years, because the future will derive benefits from the improvements and therefore may fairly be charged with a part of the cost, I believe that as a general rule the power should be exercised only in the case of extraordinary expenditure, and not in the case of annually recurring expenditures of regular amounts, even though they are permanent improvements such as street paving, sewers, school buildings, etc. final payment of new bond issues at maturity by requiring serial payments, but should provide a definite plan for establishing and maintaining sinking funds for old "straight" bonds. This could be done as it is done in New Jersey, by placing municipal sinking funds in the hands of a local sinking fund commission independent of the local authorities, by creating a new state officer to supervise the maintenance and administration of sinking funds, and by requiring municipalities to make certain annual contributions to their sinking funds. It would be impracticable in many cases to make good the present deficits in sinking funds, due to mismanagement and losses in the past. The tax would be too heavy, and refunding must be allowed to some extent. But there is no reason why the sinking-fund contribution should not be at least equal to the amount which, if contributed annually from the original date of issue of the bonds to the date of maturity, would amortize the bonds, assuming that the sinking fund will earn 3½ or 4 per cent per annum, compounded annually. The fifth main provision to be embodied in the proposed general law, unless it be embodied in the state constitution, should limit the aggregate amount of the city's bonds to some fixed percentage of the assessed valuation of taxable property in the city. Nearly all of our states prescribed debt limit of this kind. They are intended to safeguard taxpayers against unduly burdensome taxes, and in many instances they have proved to be very effective. Before such limits were devised, there were municipalities which piled up debts of such great magnitude that more or less successful attempts were made to escape payment, by means of compromise with creditors, repeal of charters, resignation of officials, and otherwise. The cases of Watertown in Wisconsin, several counties in Missouri, Elizabeth and Rahway in New Jersey, Memphis in Tennessee, and Mobile in Alabama, are notable examples. But it must be conceded that limitations of the amount of public debt by reference to the assessed value of taxable property are, at best, arbitrary and clumsy expedients. In theory, there is no such thing as fixed or absolute limit to the amount of debt a municipality may incur, and no such thing as an ab- improvements extending into future years, because the future will derive benefits from the improvements and therefore may fairly be charged with a part of the cost. I believe that as a general rule the power should be exercised only in the case of extraordinary expenditure, and not in the case of annually recurring expenditures of regular amounts, even though they are permanent improvements such as street paving, sewers, school buildings, etc. For example, if a city spends $25,000 every year for school buildings, and raises the money by an issue of long-term bonds, the time may arrive when the interest and sinking fund charges will amount to more than $25,000 per annum, and it would be a good deal cheaper to finance the improvements by current taxes. This is the situation in New York City today, and it is largely responsible for the "pay-as-you-go" policy adopted in 1914 pursuant to an agreement with the bankers of the city. But New York found it necessary to modify this policy. Elsewhere, I think, this very interesting problem should be left to the judgment of the city officials. The general law I suggest should, in the second place, limit the life or term of a bond issue to the probable period of usefulness of the improvement for which the bonds are issued, such a period to be determined by the local authorities, but to be within certain maximum periods to be prescribed by the act for particular classes of improvements. There is a very large amount of outstanding municipal debt incurred for improvements whose usefulness is past and gone. In principle, this is the same as issuing bonds for current expenses. There was a time, it was said, when New York did such things as issuing 50-year bonds to put cases of waterown in Wisconsin several counties in Missouri, Elizabeth and Rahway in New Jersey, Memphis in Tennessee, and Mobile in Alabama, are notable examples. But it must be conceded that limitations of the amount of public debt by reference to the assessed value of taxable property are at best, arbitrary and clumsy expedients. In theory, there is no such thing as fixed or absolute limit to the amount of debt a municipality may incur, and no such thing as an absolute maximum ratio of a municipal debt to property values. Hence those prevent the making of public improvements which ought to be made. The difficulties of fixing an arbitrary legal limit are shown by the great diverences in the limits prescribed by the different states. Moreover, the assessed value of taxable property is an unsatisfactory basis for a debt, because it may be, and at times has been increased merely for the purpose of expanding the debt limit, and because the ratio of assessed value to actual value differs in different taxing districts. On the other hand, imasmuch as these debt limitations have the merit of being effective when the limit is not too high, and no other expedient has yet been shown to be equally satisfactory; it is generally held that they should be continued. Some day we may be able to deal with the matter in more scientific fashion by establishing central administrative bodies with powers like the local government board of England, including the power to pass upon the expediency of municipal bond issues, but up to the present this has been deemed impracticable here. In my opinion, a 10 per cent debt limit, that is to say a limitation of debt to 10 per cent of the taxable values, with a provision exempting bonds for self-sustaining But how? You do not have head and engage in to remember the e and all the rest of the American sold was on; how you and shouted your brown ranks marched banner of the United at the head of the stood up every time Banner was played bared your head went by; how your mobile wherever yeder to see that might rise instead and your families road stations laded strange soldiers ting through; how pride when your own ing away to the point while the bugles blared forth their drums rolled marches. That was all very commendable, was body was exalted, self and lived up thought and lofty. Then nothing was even was good ene brave young men w their positions in ANAHEIM GAZETTE municipal enterprises, is very liberal. I believe that the 18 per cent limit in the Virginia constitution would be too high were it not for the fact that it is very difficult to exclude bonds for self-sustaining enterprises from the operation of the limit. I am also inclined to the view that the debt should be a territorial limit and not merely a limit upon the debt which any one political subdivision within a given territory may incur. Under the ordinary debt limitation, any number of political subdivisions may occupy the same territory, each may incur debt up to the limit. South Carolina furnishes an interesting exception. There they have an 8 per cent limit for a city and a 15 per cent limit for the territory embracing the city. The sixth provision which I would put in the general law for Virginia municipalities would be one making all municipal bonds direct and general obligations of the municipality and payable out of taxes levied upon all taxable property in the municipality, without regard to any tax limit prescribed by law. Limit the power to incur debt, but not the power to pay the debt. Every limitation of the power to pay will be reflected in the market price of the bonds, and municipalities will find it cheaper in the end to secure the payment of their bonds by the pledge of a sufficient tax, even though it is proposed to use special funds other than general taxes to pay them. THE CAVE MAN'S WIFE The cave man's wife is to have her chance for fame now. Little had been heard of her. The cave man himself, with his club and his stone hatchet, his eccentric but effective methods of wooing and his battles with the saxon friends and offering in sacrifice their very bodies upon the altar of patriotism and of humanity. O, we were greatly moved, those days, and we meant it, too. But how about now SHIP BY TRUCK TRAIN TO MAKE LONG TRIP Will Pass Through Anaheim Tuesday, May 25 With the various committees zealously working on their tasks, the details of the second annual Southern California ship by truck-good roads tour scheduled for May 17 to 25 are practically completed. Most vital, aside from the signing up of entries, of which there are more than twenty and a strong likelihood of the total reaching thirty, is the definite announcement of the route that she freight-laden motor carriers will follow. Five hundred miles of Southern California highways, including every kind of traveling from boulevards to sandy desert, and twisting mountain grades, will be traversed by the caravan of trucks, with El Centro as the pivot point in the circuit through Imperial valley points. The start will be from Los Angeles in the morning of Monday, May 17, following the valley boulevard through El Monte, Puente, Pomona and Ontario; thence to San Bernardino, Redlands and Colton to Riverside, where the first night's stop will be made. Here, as in other cities where night stops have been decided upon, public meetings which include a band concert, motion pictures and speeches on good roads and motor transportation, will be held. The second day's run will take the fleet or trucks with their loads of THE CAVE MAN'S WIFE The cave man's wife is to have her chance for fame now. Little had been heard of her. The cave man himself, with his club and his stone hatchet, his eccentric but effective methods of wooing, and his battles with the sabertoothed tiger are matters of common knowledge, while the lady of his cave has escaped publicity. But the extension division of the University of California is to bring her forth and show what sort of woman she was. The cave women's character, habits and customs are to be discussed by Paul Louis Faye, fellow in anthropology of the University of California, who is lecturing for the extension division of the university. It is proposed to have Faye lecture before a number of clubs in California during the summer and fall. In addition to his lecture on "The Primitive Feminine," which is the scientific name for the cave woman. Faye will also lecture on "The Passing Masculine." THE MAORI SINGERS An entertainment and musical event very much out of the ordinary is scheduled for the closing day of Chautauqua in the coming of the Native Maori Singers. It is the first and only company of its kind ever brought across the Pacific. Their program is a page out of their own lives, and one that cannot be obtained from either book or film. It portrays the past and present of their race. It is the visualized story of the Maori from the days before the coming of the white man to the time when the sturdy Maori youths shouldered their modern English rifles and marched off to do their bit for the allies. Soenes of Maori tribal life are enacted, the meeting of the chiefs, the marriage celebration, the feasts, the customs of the home, the war songs and dances, are all given in their program. And through it all runs the beautiful weird music of their New Zealand home. BUT HOW ABOUT NOW? You do not have to scratch your El Monte, Puente, Pomona and Ontario; thence to San Bernardino, Redlands and Colton to Riverside, where the first night's stop will be made. Here, as in other cities where night stops have been decided upon, public meetings which include a band concert, motion pictures and speeches on good roads and motor transportation, will be held. The second day's run will take the fleet or trucks with their loads of Los Angeles merchandise for Imperial valley points, across the desert to Indio and Coachella, which will be the Tuesday night stop. Here the farmers in the Coachella valley region will be invited to the city to witness the parade and attend the public meeting. The third day's run will be the most severe of the tour, being over the rough, sandy desert country along the Salton sea to Westmoreland and Brawley, the latter city being the night stop. The "going" will be tough over this stretch, but the exacting demands of desert roads will be tempered with smooth running over a long stretch of newly finished paved boulevard. It is such traveling conditions as prevail in the Coachella-Brawley link of the tour that will give the truck run an aspect of real transportation demonstration rather than a triumphant tour over glasslike boulevards. The fourth and fifth days will find the truck caravan cruising over the highways of the Imperial valley, making El Centro the pivot point of runs to Imperial, Rockwood, Calipatria, Niand, Heber and Calexico, on the Mexican boundary. Night stops on Thursday and Friday will be at El Centro, where one of the biggest public demonstrations of the entire run will be held. The sixth day will find the caravan swinging back toward Los Angeles, with new cargoes of freight, consist of Imperial valley products, the nature of which has not yet been announced by the committee. San Diego will be reached on the sixth day, the trucks following the mountain route by way of Seeley, Coyote Wells, Devils Canyon, Campo and Portrero grade. This route includes traveling from a point below sea level to an elevation of 3,200 feet, and provides a gruelling test of power and endurance, yet with safety and ease commensurate with efficient transport. COST OF EGGS BY PARCEL POST Average hen's eggs will weigh about 1½ pounds to the dozen, or 2 ounces apiece. The weight of a single dozen of eggs in a carton properly packed and wrapped for mailing will run from 2 to 3 pounds, depending on the nature of the particular container, the size of the eggs and the packing and wrapping used. If the container be a very light one and the eggs small, the parcel may fall within the 2-pound limit, and the postage, therefore, within the first and second zones, or 150-mile limit, would be 6 cents. Most parcels containing a dozen eggs will exceed 2 pounds but will not reach 3; therefore the postage on them will be 7 cents within the first and second zones. A parcel containing 2 dozen eggs will add perhaps 2 cents to the Scenes of Maori tribal life are enacted, the meeting of the chiefs, the marriage celebration, the feasts, the customs of the home, the war songs and dances, are all given in their program. And through it all runs the beautiful weird music of their New Zealand home. BUT HOW ABOUT NOW? You do not have to scratch your head and engage in long, deep thought to remember the enthusiasm that you and all the rest of us exhibited over the American soldier when the war was on; how you threw up your hat and shouted yourself hoarse as the brown ranks marched along with the banner of the Union floating proudly at the head of the column; how you stood up every time The Star-Spangled Banner was played or sung; how you bared your head when the color guard went by; how you stopped your automobile wherever you might be in order to see that the man in uniform might rise instead of walk; how you and your families went to the railroad stations laden with food for the strange soldiers that might be passing through; how you shed tears of pride when your own boys went marching away to the ports of embarkation while the bugles played, the bands blared forth their patriotic tunes and the drums rolled their soul-stirring marches. That was all very fine and all very commendable, wasn't it? And everybody was exalted, lifted far out of himself and lived upon a plane of high thought and lofty idealism. Then nothing was too good, nothing even was good enough to offer these brave young men who were giving up their positions in life, their families ture of which has not yet been announced by the committee. San Diego will be reached on the sixth day, the trucks following the mountain route by way of Seeley, Coyote Wells, Devils Canyon, Campo and Portrero grade. This route includes traveling from a point below sea level to an elevation of 3,200 feet, and provides a gruelling test of power and endurance, yet with safety and ease commensurate with efficient transportation. The sixth and seventh nights will be spent in San Diego, a public parade and meeting being held Saturday, while Sunday will be a day of rest for the trucks and drivers. The eight day's schedule calls for a run over the coast highway, through La Jolla and Oceanside to Santa Ana, which will be the night control. In the Orange county city a big meeting to arouse interest in the ship by truck and good roads movement will be held. Also, the committee is considering another demonstration at the prosperous city of Orange, only three miles distant, where a big celebration will be held in connection with the turning on of current in Orange's beautiful new street lighting system. The final leg of the record breaking truck run will be from Santa Ana to Los Angeles, by way of Anaheim, Fullerton Whittier and Montebello, winding up a circuit of 500 miles. A committee of prominent motor truck dealers, including Earl V. Abbott, Gilbert Woodill, J. Tehan, A. C. Bushnell, V. S. Beardsley, G. O. Fries and A. N. Wayne, is busily working out entertainment programs in the important towns along the route, and in this line they are receiving the hearty cooperation of public spirited citizens in the various communities. If the container be a very light one and the eggs small, the parcel may fall within the 2-pound limit, and the postage, therefore, within the first and second zones, or 150-mile limit, would be 6 cents. Most parcels containing a dozen eggs will exceed 2 pounds but will not reach 3; therefore the postage on them will be 7 cents within the first and second zones. A parcel containing 2 dozen eggs will add perhaps 2 cents to the postage, though sometimes only 1 cent, dependinb on the nature of the container and the packing and wrapping. It should be observed that the larger parcel (within the size and weight limits) the cheaper is the postage, as the first pound of every package costs 5 cents within the first and second zones, while each additional pound up to 50, costs but 1 cent; so that while a 1-pound parcel would cost 5 cents postage, a 2-pound parcel would cost only 6 cents, or 3 cents a pound. A 20-pound parcel would cost 24 cents, and a 50-pound parcel would cost 54 cents. WHERE DO THEY GET IT? The "Committee of Forty-eight," which is preparing to launch a new political party on a platform that is a cross between single tax and socialism, announces that it "represents" the great masses of the American people. Where do these committeemen get their commissions to represent the great masses of the American people, or to represent anybody, as a matter of fact, other than themselves? Who chose them as representatives of public sentiment? Ordinary political parties have their machinery for the election of representatives; they have PHONES SUNSET 341-J. Ray, Cor. Claudina PHONES HOME 753-2 AW. M. D. D SURGEON 8; 84; 7-8 BANK BLDG. Los Angeles Sts. M, CAL. D.D.S., M.D. D SURGEON AND THROAT— BY—GLASSES ED TRAL BLDG. NSET 337 A. Neth Practitioner BLDG., ANAHEIM are especially adents of the Nerves muscles and joints. seases of the varfield with surprismodalities. Fees DS ROOFING BS BER roadway CAL. With VERS Family Washing SAVE your wife the drudgery of the washtub by sending us your family washing. It costs you very little when compared to the pleasure it will bring to your wife—put the burden on us Send us your shirts and collars Immaculate linen is the mark of a gentleman. You get the best work here. Patronize a home concern. Anaheim Laundry Company Phone 18 WE KNOW MEATS —"Every man to his own business" is a well-known saying—and we believe that this applies to us. Our business is buying meats as well as selling meats—upon the buying depends the success of the business. That's why we buy only the best meats—and we know the best meats. Any piece of meat that you buy in this shop has been selected by us because we know that it is a good piece of meat, meat that you can eat with satisfaction. Upon this basis we ask your patronage. Anaheim Cash Market WE KNOW MEATS —"Every man to his own business" is a well-known saying—and we believe that this applies to us. Our business is buying meats as well as selling meats—upon the buying depends the success of the business. That's why we buy only the best meats—and we know the best meats. Any piece of meat that you buy in this shop has been selected by us because we know that it is a good piece of meat, meat that you can eat with satisfaction. Upon this basis we ask your patronage. Anaheim Cash Market 109-11 N. Los Angeles St., Anaheim J. E. STROUP, Proprietor Are You Going to Build If you contemplate building new or repairing an old building, let us figure on your material. We handle everything you need, and our prices are right. Griffith Lumber Company South Los Angeles St. H. M. ADAMS, Mgr. ANAHEIM FEED and FUEL CO. DEALERS IN Wood, Coal, Hay, Grain Seeds and Flour PUBLIC WEIGHING SCALES Phones: Pacific 317, Home 294 A. V. Vall, W. D. Grafton, Props. Good Place to Buy— G-O-O-D L-U-M-B-E-R C. GANAHL LUMBER COMPANY Anaheim. : : : Cal Good Place to Buy— G-O-O-D L-U-M-B-E-R C. GANAHL LUMBER COMPANY Anaheim, Cal MEATS OF HIGHEST QUALITY —That’s what this market prides itself upon. None but the very best quality steer beef is ever sold over our counters. We are here to prove this statement. Let us supply your every want in quality meats. Schneider’s City Cash Market Phone 20 117 West Center St. primaries and conventions of the people at which such representatives are chosen. But the Committee of Forty-eight, like many other organizations professing to represent the great body of the people, is entirely a self-constituted and self-designated affair. It may with propriety claim to represent certain theories or fads in politics, but it has no warrant for the assertion that it represents more than an imaginary constituency. But there is, of course, distinguished authority for getting one’s authority to represent the people without their consent from voices in the air and other sources no more tangible. But why not let a few of the people, at least, in on some of these movements to represent and emancipate them? Why not, in these matters, have a little of that “self determination of peoples” so much talked about and so little practiced by some folks who think they are divinely ordained to swagger around as old Vox Populi. Who would have expected the time to come when a democratic administration would rejoice over the fact that the administration’s candidate for president had succeeded in getting a little more than one-third of the votes cast in a democratic primary in the state of Georgia? When Doc Grayson compared the Crane cottage at Woods Hole with the presidential palace at Paris he very quickly concluded that it was not be fitting the economy and simplicity befitting a democratic government, as the Wilson platform of 1912 said.