Newspaper Page Text
DAILY CAPITAL JOUSNAL, SALEM, O&ECJON, WEDNESDAY, JANUARY 7, 1914.
jTAOa TH2ZSL. Mayor Sleeves' Annual Message to City Council of Salem 1 To the Honorable the Common Council of the City .of Salem, Oregon: tientemen: Pursuant to the duty imposed upon me by Section 7 of the city charter to "at least once a year state to the counT cil by message, the condition, finan cially and otherwise, of the pity, and recommend such measures for the best improvement and prosperity of the city, as I may deem expedient, I hereby sub mit to you my annual messago: Financial Condition. I will deal first with the financial condition of the city, as to its bonded indebtedness, and as to its running ex penses; second, I will discuss the ques tion of public improvements both as to those executed during the past year and as to my views concerning future improvements, and lastly I will devote a little space to miscellaneous matters of interest to the city. Bonded indebtedness. At the pres ent time the city has outstanding in the form of general obligation bonds, the following securities: Sixty thousand (60,000) dollars 6 W cent funding bonds. Thirty thousand ($30,000) dollars per cent refunding bonds. Nineteen thousand ($19,000) dollars 5 per cent refunding bonds. Sixty-three thousand fifty ($63,030) dollars 5 p?r cent refunding bonds. Twenty thousand ($20,000) dollars 5 lor cent refunding bonds. A total general obligation bonded in debtedness of $192,050. In addition to the general obligation lionds mentioned we now have out standing $480,000 of 5 per cent serial sewer bonds just issued which brings the total general obligation bonded in debtedness of the city up to the amount of $672,050.00 Gives List. In addition to the foregoing general obligation bonds there are outstanding on the city records what are known ss Charter Act ponds issued for public improvements. These bonds are as fol-lows: State Street Railway Im provement bonds. Upper State Street Im provement bonds. South Commercial Street Improvement bonds. North Winter Street Im Improvement bonds. Bonds issued for construc tion of sewer in Block 3S. Lower State street Im provement bonds. " Commercial Street Eailway bonds. High Street Improvement bonds. Upper State Street Im provement bonds. Commercial Street Improve $12,935.75 14,108.41 2,142.43 471.00 412.S0 8,251.35 7,484.95 77P.0C 1,288.54 9,018.93 meut bonds. Act Quickly Don't wait until you have aoma ail ment caused by poor digestion, biliousness, or by inactive bowels which may lead to a serious sickness. Immediate relief is afforded by that best corrective and preventive per cent, which brings the total bonded indebtedness upon which the taxpayers of the city are paying interest, to ap proximately 10?i per cent of the total assessed valuation within the corporate limits of the city as indicated by the 1912 state and county assessment. For street improvement proiects now or nearly completed and one under con tract for completion in 1914, Bancroft act bonds will probably be issued to the extent of not less than $75,000.00 which will increase these percentages ami totals materially, These facts, gentlemen, are a serious warning to you that you must scruti nize all improvement projects involv- ing the issuance of bonds to raise large sums of money quickly, with painstak ing care and that no further indebted ness should be incurred against the city unless the same is of the most urgent character for the protection of public health, and in order to bring this more forcibly before you I wish to treat somewhat of the history of our municipal indebtedness which is a di rect obligation of the city outside of tho present sewer bonds which every one ought to -understand. Authorized in 1894. The firt bonds mentioned above are the $60,000.00 6 per cent funding . , , . , bonds. These bonds wore authorized indebtedness T i iom .... ,r vunuaiv out. uv uruinanc.fl jno. znm and were issued for a period of twen- tv vnftra Ond Bm -.. J ......... v, .,,,. fa ig8ue bcar. to a hen and which are not at ,. 4 . . . . , . , , , , ... C8t for a straight poriod of twenty classed as general obliga- . . . ' . , . ' t, h , , ., .. . years an equal amount has been au- T.T T , ' thorize'1 thia he I thirty (30) Bancroft bonds. I , .. ., , , ' ,v ' i ,jv,'. . , , . , , b7 tne council, and have been 111 addition to the charter act horn a ... ' - ti.n m,.,i tfc:- , :. S01U nt a Premium of $1,248.00. The .,.. nf Po ... L.' , fwldlP touchin8 these bonds and n. . ,xt.. ... Bre now u,lder examination and th x fcv ii uom inclusive, air- .-n n , , mH. .l Mnda W1" ln a" Probability be deliv- . . . ' . . . ' ere during the next thirty (301 davs. You will note that this indebtedness never been rofunded by the city horotofore and is based directly upon IS $56,893.23 Total bonded ou improvements for which private property or street Standard ood Medicine the whole world over HOOD'S SARSAPARILLA. Drug gist everywhere tell and feel ufe in recommending It because it gives such general latisfaction. Purifies, build up, creates appe tite, overcome that tired feeling. Get a bottle today. is a lien against private property and is not classed as a direct obligation of 'na9 the city. The total bonded indebted ness not general obligation, is $592,- 831.81, which added to the general total bondod indebtedness upon which the taxpayers are compelled to pay inter est, makes a grand total of $1,264,-881.81. Total Interest $66,000. BEE CM PILLS Sold rrenrwler. la brae 10e 2Se $60,000.00 of city indebtedness in the form of warrants outstanding, January 1, 1894, part of this $60,000.00 indebt edness is due, the records of the city disclose, to a failure of the city assess ment law of 1893, thereby leaving the city without revenue from direct taxa- In round numbers the total interest ,tion on city assessments, and the bal- which the city in its corporate capacity iance seem to have been in the form of and the taxpayers are paying upon this j warrants outstanding issued to meet total bonded indebtedness is $66,000.00 .bridge and sewer construction and run- a year. ning expenses of the city. The total indebtedness for which tho The purpose of the outgoing council city is directly liable amounts to ap- in passing an ordinance refunding this proximately 5 per cent of the assess-, issue on a straight twenty (20) year ed valuation of tho city at the present j basis was to enable the city to meet time and tho bonded indobtodness for the i,or m.m.nnn ,of,.; 4ii taxpayers are liable upon 1914, 01X a seriai basig at th ' which the taxpayers are liable street and other improvements exclu sive of the sewer bonds just mentioned, amounts to approximately another 5 BEAUTIFUL MOUNT CREST ABBEY COMMUNITY MAUSOLEUM IS RAPIDLY NEARING COMPLETION IN CITY VIEW CEMETERY, SALEM. OUR REPRESENT ATIVE WILL BE GLAD TO MAKE AN AP POLVTMENT TO SHOW YOU THE BUILDING. WHY DEFER LONGER? PORTLAND MAUSOLEUM COMPANY BUILDERS HUBBARD BUILDING, SALEM TELEPHONE 239 SninM8aMniHiU' . it h i i inn time tako caro of them with tho sewer bonds so that thoro might bo no need of refunding for a long period without redemption privilege, as in the caso of the '$00,000 just mentioned. It is my firm conviction that the opornting ox- wises of the city should be met from jyear to year and that it should be tin : necessary to fund or refund indebted Iness of the city which is purely in tho , nature of running expenses. So far jas investment projects aro concerned I in which the city may find it oxpodient to engage, I have no serious objections, 'provided tho bonded indebtedness is 'based upon a sound retiring sinking I fund basis or serial payment basis to be paid for out of annual taxation if I the investment is not a productive one ins in the case of our sewer bond Shsho i tiin of that period, legislature met and amended the char ter of the city in ordor to legalize a re fund issue which was then made dur ing the administration of F. W. Waters as mayor, April 1, 1904. Bonds Still With Us. It is interesting to note that this bond issue was refunded about four years after the wooden bridge for which they paid, wag washed away in the floods of 18S9-1890, and yet while the bridge has been destroyed many years the bonds are still with us, and it is my determination, and I trust, gentlemen, that you will support me iu the same, to pay this bonded debt which has survived rhe destruction of the property purchased with the pro ceeds of a serial refund issue. It is in teresting to note that section 8 of the original ordinance numbered 422 au thorizing this indebtedness contem plated that these bonds might be re deemed before maturity in the order of their issue, but as redemption was not mandatory by the terms of the or dinance upon any council they have run along until we face tho necessity of paying them off in April, 1914, or of roftinding them for another long period foregoing indebtedness covers the cos, of the city hall, but the detail, if pres ent in the city records, is so difficult to find that it has not been secured. It is also not material to this purpose. Running Expenses, (b) During the past year the city has run within the amount of money appropriated by' the last council and has met out of these funds some few extra emergency expenses aud retired $20,000 of the bonded indebtedness of the city which matured in November, 1912. Some of the sub-divisions of the general fund were exceeded and others showed a surplus indicating that the budget as prepared In 1912 was aeeur ately made. Some items in respect to printing, special elections and fire de partment expenses could not be accur ately foreseen and were replenished from other subdivisions of the general fund, but on the whole we have lived well within our inepme. Owing to the fact that provision was made for re tiring the $20,000 bond issue referred to above, wo were unable to nvake the usual reduction in the amount of out standing warrants against the street fund aud as a consequence the indebt edness in this department of the city's work lias shown an increase of about $8,000 over aud and above the 1 V mill levied in 1912, but the street depart ment, as a matter of fact, has run at an expense of about $1,000 less than ws provided for in the budget and would have made a better showing if it had not assisted other funds. I can not help saying that the economy and good work done in this department is due very largely to tho efficient and experienced service of tho chairman of the street committee. I refer to retir ing alderman Gideon Stolz. I find that there is also a surplus iu the bridge appropriation of about $2500 0 . VN 1 I In Hong Kong. Paris, or Portland If you ask the dealer for a good oil lamp, he will undoubtedly produce a Rayo and tell you there isn't a better lamp made. of time or refunding them on a serial redemption basis, which should be man-,wn'cn a part of the street fund levy datory and not optional. I sincerely and I w180 to give credit for the excel trust that when the proper time comes iIont condition of the bridge funds and you will support me in my wishes in this matter. The next issue of bonds which will miature I need only mention iu passing and as being subject to the same re marks, but inasmuch as they will ma ture in 1920 I only wish to place my solf on record at this time in the hope that the policy which I have advocated above may be followed when thesa bonds maturo. The issuo is $19,000 of a per cent ten year bonds maturing January 20, 1920, issued under author ity of ordinance No. 747 for the pu.'- pose of refunding a part of the cost of constructing the Marion and Ferry street sewer Bystoms. The records of tho city do not discloso to what extent this amount of money represents the original cost of these two systoms but from what I can learn, it is only a part of tho cost thereof. Tho next issue is ono of $(13,050, which was refunded under ordinance No. 749 for tho poriod of ten years Docember 27, 1909, to mature January 20, 1920, and represented $65,000 of municipal 4 per cent funding bonds which wero issued originally by whnt is generally known as tho "hayseed ouncil" under (Into of October 2, lR'.li). The original issue was mndo, so far as the records of the city disclose, for 11m purpose of funding $115,000 of outstand ing indebtedness incurred for tho opor ntiniug expenses of tho city over u period of several years during the hurl just mndo. 1 am very much opposed to handling the romuinig portion of our general obligation bonds on any other than n busis Hint will retire the sumo ns I have just Indicated. With this iu view I will proceed to briefly outline the nature of the remaining portion of our general obligation boned indebtedness. The next bonds maturing April 1, 1914, tiro what is known as municipal 4 per cent refunding bridge bonds and were issued to refund $.'10,000 of in debtedness incurred originnlly for tho construction of tho bridge across tho j Willamette river and represent a por tion or the cost of the original wooden bridge. These bonds were based upon the indebtedness incurred iu October, lSSO, for the construction of the wood en bridge as Indicated, Tho original issue was mndo at 4 per cent on a pop ular loan plan for a poiiod of fifteen (15) years. At maturity in October, 1901, a local banker protected the city credit by enrrying the bonds until the Tho last issue to which I need rf-?r is $211,000 of refunding 5 per cent luiilge bonds authorized by onliuiuico No. .SI12 passed on the 2'-l of November, 1910, to mature October 8, 1920, mil were issued for bridge purposes. The IioiuIh nrc based upon the city's tlnnl interest iu the steel bridge over the Willamette river, 1 understand, mid are subject to the same remarks that, f have iniiilo iu regard to the other bridge lionds above, inasmuch ns tin steel bridge is practically worn out so far ns its serving the demands upo i it at the present time are concerned. Villi its life and security I am not concerned at the present time. I trust that the outline of the bonded indebtedness which I have luid before you will give you an insight into t!m city's financial problems that will be useful and enable you to better dis charge the duties incumbent upon vm and of advising nnd assisting me dur ing the coming year. I am informed that a part of the the class of work done, to the thought- fulness and skill of tho bridge Com mittee during Its work the past year. At this point I wish to say that by March 1 we will probably have out standing about $35,000 of street fund indebtedness in the forny of floating warrants and indebtedness to our sink ing funds, drawn upon to take up such warrants from time to time. While it is true we have provided about $20,000 to take up a good deul of this indebted ness the net amount of reduction at the end of the year is bound to be only about $10,000 because the revenue do- rived from the limited tax of Vj mills authorized by the charter which will produce only about $18,000 is insuf ficient to meet the total expense of running tho department which will be nearly $35,000 figuring on the basis of Inst year's showing. This boiiia the ifino I wish to again admonish the council of tho necessity of rigid ocou omy in this department aud In all others for each is dependent upon tho other for its savings and as having a bearing upon the oconomy which I wish to practice 1 earnestly commend to your consideration tho necessity of "reducing the temperature" of tho street improvement fever which hus had the city iu its grasp for tho past six years. Nearly all of the main thor oughfares aro now hard surfaced and at least one main tliorouglil'iiro lead ing out to tho surrounding country iu cai h direction, and while 1 have no de sire to advocate a "stand pat" policy, nevertheless I believe it is time to pause and take stock of exactly what our condition niiv lie nt tins time, J will touch upon this point elsewhere. There Is little moie to be said with relation to the running expenses of tho city as the sauio has been thoughtfully considered in the preparation of the budget by the outgoing council which will limit our expenditures rliis year, The detail of this will be before you in printed form by 'next meeting. Public Improvements. Second, (a) The public improve ments executed this year which are worthy of note inny be ciiuine rated as follows: First bridges. Mei-ond, street improvement, and third, public. Im provements of a public nature not mndo by the city. First, bridges. I regard the Liberty street bridge constructed under a city contract lit an expense of approximate ly $5,.VH) as being one of the most ini- Lamp is known in every civilized country of the world for its perfect lighting qualities its safety and reliability. No glare; no flicker. Easy to light and care for. Ask Your Dealer to Show Yon Standard Oil Company (California) Portland House of Half Million Bargains Come and soe the biggost wonder iu the history of Salem. You will find in our place the biggest accumulation of articles, from a hairpin to a threshing machino, ever soon. Feathor beds, bed springs, crockery, dishes, lateBt style new and second hand pictures, clothing for men and women, shoes, suit casos, show cases, vacuum cleaners, books, all kind of new and second hand machinery, construction and all kinds of tools. Steam and water pumps, gasoline engines. We buy and soil every, thing from a needle to a piece of gold. We pay the highest cash price for everything. The Ilouse of a Half Million Bargains. H. Steinbock Junk Co. Salom, Oregon. 233 State Street. Phone Main 224 MpdL2j ill I B""She looks'- "feMTM V .II MHWMWSmi Continued on page 6.) She looks younger every since xaKing 11 Ei E U .! Kit 1 CONTAIN HO HABIT FORMING DRUGS T For D Backache. Weak Bade. I ... rr. , moneys ladder. The Age of a Woman is not moosured by her years, but by her looks; and kidney troublo con put more lines in her face than old ago. Foley Kidney Pills will, if taken as directed, remove the cause ot kidney and bladder disorders, romove the pain, wonkness and weariness tliut comes irora soro, weak and inactive kidneys. They are tonic, strengthening and up. building ind you cun not tuke them into your system without having good results. TRY THEM VU. STONK'S DRL'O STOKE. MR. HENRY PECK AND HIS FAMILY AFFAIRS By Gross HENRY JR. 5AY5 tWiM vte raotp GET S ( 'M6 6oT SOME 6BeJ J Ne- To Mew Vo f MMe. vjiTH too TKoTTirfG-l oof dPTHia He-n0ese) I rVbe loo oovn (oj Business . Je cm At. J Q Woasww with) ItcW to a uliuij- Y"gyr voo wHT p f vfeA Wo M' NfWe KTej eZi co5- siEi ?.( ' PHo Wtc Thrift i - Pt WOMfy "Boy YVHO THE lOEOCE Kifc), Do 1 VJiT-1 IT rlK-T cSfM - Til mT I IFt'( HPS KTWGGT