A City on the Brink: Olympia’s 1891 Debt Crisis and the Fight Over Jobs

At the secret meeting of the city council on Friday evening, the financial condition of the city was referred to the city attorney for some definite advice and opinion as to a remedy. In reply, Mr. Fitch submitted the following last night:

"Gentlemen: With reference to the financial condition of the city and of what is necessary to be done, or can be done, I beg leave to say:

"First—Our outstanding indebtedness, taking out the warrants issued on special street improvement funds taken together with the amount voted for municipal purposes, which on the first day of October last, exceeded the constitutional limit a few dollars, unless some special assessment can be offset, for which warrants have been drawn on the general fund, which I have very serious doubts can be so classed. In other words, all warrants drawn on general fund, no matter for what purpose issued, will be charged against the city and belong to the city debt proper; hence a decision of the supreme court could not be had validating the bonds. The bonds voted, being illegal, because in excess of the limit, the council may, I apprehend, take action and annul the same. If this action was taken it would leave us where we were, with an excess of indebtedness over the one and one-half per centum, which it seems to me can be legalized and bonds voted to fund the same, under chapter 132, laws of 1891.

"FUND THE WARRANTS.

"Chapter 131, laws of 1891, seems to relate entirely to validating indebtedness incurred prior to its approval, which was March 7, 1891, but I am not aware that the city has exceeded the limit at that date; if not then we cannot move under that statute, but must proceed under chapter 132, laws of 1891, to fund outstanding warrant indebtedness.

"It is still an open question, whether or not the warrants issued for street improvements, on special funds, would not have to be passed upon by our courts in order to determine whether they would be classed and rated as a part of the city's indebtedness, though the principal laid down in the Seattle case would indicate that they would not until the city had failed or neglected to collect them.

"These statutes are new, and have not as yet been passed upon by our supreme court, that I am aware of; I have failed to find similar statutes which have been passed upon by the courts of other states; on the whole we are in a situation where, as to the best means to extricate the city, the judgment of lawyers would not be unanimous. In my judgment, we will have to proceed to ratify, and fund our indebtedness under chapter 132, laws of 1891.

"Respectfully, "A. P. FITCH, "City Attorney."

In accordance with this opinion, Mr. Sickles introduced the following resolution, which had been prepared with the aid of suggestions from Mayor Horr, Councilmen Murphy et al.:

"Whereas, We, the city council of the city of Olympia, recognizing the imperative necessity of retrenchment in every form of public expenditure to meet the depressed condition of public and private finances, burdening the taxpayers with a load that is a grievous hardship; therefore be it

"Resolved, That the following employees from and after December 24, 1891, be dispensed with, to wit: Deputy clerk, assistant to city attorney and the city engineer; and be it further

"Resolved, That the committee on ways and means be instructed to ascertain and report what other employees can be stricken from the city pay roll without material detriment to the public service."

Mr. Marr wanted time for himself and other members of the council to consider the resolution, and it was deferred until next week, although Messrs. Sickels and Murphy voted against deferring it.

A motion by Mr. Sickles to take from the table the resolution forfeiting the franchise of the street railway was lost by a tie vote, with Murphy, Percival and Sickels voting yes, Marr, Ford and McBratney no; Ward absent.

Bills as follows were ordered paid: Sidney Sewer Pipe Works ........ $887.74 John Hedges .................... 41.25 Olympia Fuel Co. ............... 10.50 B. M. Price, printing ........... 14.00 A. P. Fitch, incidentals ........ 9.45 Bilger & Going, merchandise .... 54.60 Olympia Light and Power Co. .... 475.92 City payroll ................... 1,285.45 O. E. Stickler, grading Ninth street ... 86.07

RESOLUTION ON SEWERAGE.

The committee on fire, light and water recommended that the petition for the location of an arc light at Central and Fourth streets be rejected. The same committee recommended that the arc light now located at the pipe factory be moved to Fourth street, between Chestnut and Cherry, inasmuch as travel by the former route has almost entirely ceased. Recommendations approved. The protest against the removal of the arc light at Main and Sixth streets was ordered filed.

The street committee recommended the drawing of a warrant for $12 in favor of A. B. Cowles, in payment of his claim against the city for lumber.

Mr. Marr introduced a resolution, reciting the expenditure on sewers during the year of $5,000, and directing the sewer committee to make a report of all sewers constructed, designating the streets along which sewers have been laid, the portion of the street occupied, together with data as to connections. Adopted.

The report of the city treasurer for October showed collections amounting to $20.

An ordinance establishing the grade of Fifth street from Pear to Eastside was passed, and one to establish the grade of Eastside street from Fourth to Washington avenue was referred.

C. H. Springer, Mrs. A. B. West, William Lemon and Mrs. F. A. Turner asked for the reduction of the assessment for grading Adams from Thirteenth to Fifteenth, from $1,795.20 to $911.88, as the excess dirt had been used on Thirteenth. Referred to the city attorney.