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California Legislative Counsel Bureau California. Secretary of State.

Amendments to the Constitution and proposed statutes : with arguments ... online

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cities to be annexed a staggering burden of
bonded indebtedness" ; (h) ''its adoption would
be a statewide calamity."

If this was true then, it is true now!

Responding to Oakland's cry of distress, the
people of California defeated the amendment two
years ago by 106,000 majority, with an adverse
vote in every county except San Francisco and
the counties of San Mateo and Marin, which
San Francisco commuters dominate.

Now, Oakland, upon the assurance that, for
the present, San Francisco puts aside ' its am-
bition to annex Oakland and is content to absorb
San Mateo county, makes common cause with
San Francisco and Los Angeles in an effort to
force upon the counties of California a meas-
ure which is a menace to their political and
territorial integrity, an amendment which will
strengrthen the special Interests which govern
the great cities, so notoriously corrupt, in the
control of the legislature of the State of Cali-
fornia. Such predominating power in the large
cities would mean that they would secure legis-
lation favorable to their interests and the lion's
share of the revenue produced by the people of
California in appropriations for the benefit of
these cities at the expense of the rest of the state.

It is inconceivable that the citizens of Cali-
fornia can be deceived by the specious argu-
ments of this "triple alliance" into voting to cre-
ate an oligarchy of cities to dominate the state.

On both the original San Francisco-Los An-
geles amendment to section 8 J of article XI of
the Constitution of the State of California, and
the Oakland substitute, which is now supported
by the politicians and private interests of all
three cities, the people of the State of California
should vote "No." Edw. K. Strobridob.

State Senator Thirteenth District



DEPOSIT OP PUBLIC MONEYS.

Initiative amendment to section 165 of article XI of constitution. Present section unchanged
ixcept in following particulars : Authorixes banks in which public moneys are deposited to furnish,
IS security, bonds of districts within municipalities, or of a corporation qualified to act as sole
surety on bonds or undertakings, . to an amount in value, or with a penalty, of at least ten per
:ent over amount of deposit ; provides that no deposit under section shall exceed at any time fifty
)er cent of paid up capital and surplus of depository bank.



The electors of the State of California hereby
Propose to the neonle of the State of California
hat section 16* of article XI of the Constitution
)f the State of California, relating to the deposit
^f Dubllc moneys, be amended so as to read as
'ollows :

PROPOSED LAW.

Section 16*. All moneys helongfncr to the state
5r to any countv or municipality within this state
Tiay be deposited In any national bank or banks



wH^f»> ttif<s state, or In any bank or banks organ-
ized unrfer the laws of this state, in such man-
ner and under such conditions as may be pro-
vided bv law: provided, that such bank or banks
in which puoh monevs are deoosited shall fu'-'>i«h
as security for such deposits bonds of the united
g!t«'+'»« or of this state, or of any county, munlc-
InalHv or Q^hnnl rllstWnf within this state, or of
anv irrigation district within this state, or of any
district within any municipality authorized under



the Iaw8 of this state to Issue bonds, or the bond
of a corporation qualified to act as sole surety
on bonds or undertakings required by the laws
of this state, to be approved by the officer or
officers designated by law, to an amount In value,
or with a penalty, of at least ten per cent in
excess of the amount of such deposit ; and pro-
vided that such bank or banks shall pay a rea-
sonable rate of interest not less than two per
cent per annum on the daily balances therein
deposited; and provided that no deposit shall at
any time exceed fifty per cent of the paid up
capital and surplus of such depository bank or
banks ; and provided, further, that no officer shall
deposit at one time more than twenty per cent
of such public moneys available for deposit in
any bank while there are other qualified banks
requesting such deposits.

Section 16 J, article XI, proposed to be amended,
now reads as follows:

EXISTING LAW.

Section 16 J. All moneys belonging to the
state, or to any county or municipality within
this state, may be deposited in any national bank
or banks within this state, or in any bank or
banks organized under the laws of this state, in
such manner and under such conditions as may
be provided by law ; provided, that such bank or
banks in which such moneys are deposited shall
furnish as security for such deposits, bonds of
the United States, or of this state or of any
county, municipality or school district within this
state, or of any irrigation district within this
state, to be approved by the officer or officers
designated by law, to an amount In value of at
least ten per cent in excess of the amount of such
deposit ; and provided, that such bank or banks
shall pay a reasonable rate of interest, not less
than two per cent per annum on the daily bal-
ances therein deposited ; and provided, that no
deposit shall at any one time exceed fifty per
cent of the paid-up capital stock of such deposi-
tory bank or banks ; and provided, further, that
no officer shall deposit at one time more than
twenty per cent of such public moneys available
for deposit in any bank while there are other
qualified banks requesting such deposits.

ARGUMENT FAVOR CERTAIN SECURITIES
FOR PUBLIC MONEYS.

The people of the State of California lose more
than half a million dollars each year in interest
on over twenty-five million dollars idle money in
the vaults of the state treasurer and the various
county and city treasurers. The treasurer of
the city and county of San Francisco now has
nearly four million dollars cash on hand, and
at certain times of the year this runs up to over
six millions. The other cities and counties of
the state carry idle money in varying propor-
tions.

The object in seeking to amend this section of
the constitution is:

First — To secure the benefit to the people of
the state of having all of the public money in
active circulation at all times with ample se-
curity to be given by the banks for. its payment
to the respective treasurers on demand.

Second — To secure for the state and the coun-
ties and cities therein interest on these vast sums
of idle money, and thereby reduce taxes to that
extent

In practically all of the other states, these
favorable conditions have been brought about by
acts of the legislatures, and public money In
such states is never withdrawn from circulation ;
it is always deposited in banks, upon the banks
furnishing good and sufficient security. In Cali-
fornia, it is necessary to bring about this result
by constitutional amendment, because of the
fact that when the constitution was adopted its
framers did not take into consideration the wide
scope of present day bankable securities and
collaterals, and the banks are not in a position
to take all of the public money, if they can
Ninety-four



furnish only the very limited kinds of securities
specified by our constitution ; hence the idle
balances now in the various treasuries.

It is proposed to follow the lead of the other
states, such as New York, Pennsylvania, Ohio,
Illinois and our neighboring states of Washing-
ton, Oregon, Idaho and Arizona, and bring our
methods of handling public money up to date by
adding to the list of acceptable securities as
now specified and allowing the banks to furnish
other approved security and collaterals of equal
value.

If you are in favor of having the people get
the interest they are entitled to on their public
money, and of having all the money in circula-
tion, with the further advantage of reducing the
risk and expense of safeguarding this money
from burglary, vote "Yes" on the amendment.
Leslie E. Burks.

ARGUMENT AGAINST CERTAIN SECURI-
TIES FOR PUBLIC MONEYS.

This proposed amendment to section 165, arti-
cle XI, of the Constitution of the State of Cali-
fornia, to be submitted at the general election
to be held November 3, 1914, should be voted
down for the following reasons :

First — Moneys belonging to the state or any
county or municipality within this state are im-
posed with a special trust that they should be
at all times available for public purposes.

There is a potency about cash that does not
attach to any form of security, and the cash
belonging to the public should be available in
every emergency. Whatever militates against
this availability is bad public policy.

As section 16 J stands without this proposed
amendment, it permits the deposit of bonds of
the United States, or of this state, or of any
county, municipality, or school district, or of
any irrigation district within this state, with
the officers designated by law as custodians of
the state or county or municipality moneys. The
change contemplated by the amendment adds the
bonds of any district within any municipality
authorized under the laws of this state to issue
bonds, or the bond of a corporation qualified to
act as sole surety on bonds or undertakings re-
quired by the laws of this state. It will be
observed, therefore, that the change adds two
additional classes of security to be deposited
with the respective treasurers: (a) bonds of a
district within a municipality; (b) bonds of a
surety company.

The addition of "bonds of a surety company"
constitutes the vice of this amendment. There
Is apt to be confusion arising in the minds of
the voters by the use of the word "bond." The
bond of the United States, or of this state, or of
any county, municipality, or school district, is a
strict contract for the payment of money, like a
promissory note, whereas the bond of a corpora-
tion qualified to act as sole surety is a contract
of indemnity, and a very different thing from
the bond of a municipality. This confusion arises
out of the popular use of the word "bond." Now
in the case of the deposit of bonds of a munic-
ipality, county treasurers have an instrument
which they can go out in the open market and
sell. In the case of a bond of a surety company
they have nothing they can go out and sell, and
in the event of a failure to repay the moneys
deposited with the bank the officer holding the
bond of a surety company is put to a suit at
law to recover the penalty. These bonds, being
of indemnity or surety, the opportunities of de-
fense to any suit that arises upon them are
multiplied by the extreme technicality of the
law relating to contracts of indemnity or surety,
and the numerous cases that our reports contain
indicate that in many instances the party for
whose benefit a bond is made fails to recover.

The people should not be tricked into voting



r



In /avdr of this amendment by r6aS6n of the
similarity of the word "bond" in each instance,
because In effect they are two very different
Instruments. If every voter would ask himself
whether he was better protected for the loan
of money by having United States bonds as se-
curity, or by having the bonds of a surety com-
pany, he would realize the difference and the
vicious effect of this amendment.

Second — The law as it has stood ever since Its
enactment has given entire satisfaction. Not only
that, but there has not been a semblance of loss
by any county or municipality in this state under
its workings. There is no public demand for
any change, there has been no county treasurer
but what has been able to deposit his money with
banks if he so desired, and no bank has been
unable to obtain money that had the proper
securities ; therefore the object In making the
amendment must have some ulterior purpose.
Of course the ulterior purpose is to increase the
business of surety companies, most of whom are
foreign corporations. It is not designed for pub-
lic benefit. There is no need or necessity of the
amendment, except to contribute to the selfish
ends of the surety companys.

Third — It is frequently necessary for either the
state, or for counties or municipalities or school
districts within this state, to obtain moneys by
the issuance of bonds. Whatever will increase
the premium paid for the purchase of said bonds
to the municipalities is so much to the good to



the political entity making the sale. Whatever
increases the demand for such bonds increases
this premium. The use of bonds for the purpose
of deposit with county treasurers in order that
cash may be withdrawn to banks increases the
demand. It offers additional use for the bonds and
additional inducement for their purchase. Since
the enactment of section 16 J ft has conduced
greatly to the benefit of the political entities of
the state issuing bonds, because it has vastly
increased the market for such bonds, thereby
increasing the demand and insuring a higher
premium for the bonds sold. Now it is proposed
to bring these municipal bonds in competition
with the bonds of a surety company. This will
diminish the demand, consequently diminish the
premium, and thereby diminish the benefits ac-
cruing to the political entities issuing the bonds.
It thus militates against the best interests of the
county or school district or municipality desiring
to issue bonds, and for that reason should be
voted down.

Fourth — In spite of whatever care the legis-
lature may take in passing an enabling act and
providing safeguards for the issuance of surety
bonds, this amendment will offer opportunities
for banks to form surety companies, operated by
dummies, permitting collusion and fraudulently
obtaining large sums of money from public en-
tities.

For these reasons the voter should vote "No"
upon this amendment. L. H. Rosbberry.



PRIZE FIGHTS.

Initiative act amending Penal Code. Prohibits the engaging in or furthering in any way
prize fights or remunerative boxing exhibitions, training therefor, or betting thereon ; the con-
ducting, participating in or witnessing any boxing exhibitions on Memorial Day or Sunday ;
authorizes regulated four-round amateur boxing exhibitions unless prohibited by ordinance;
provides for arrest of persons about to promote or participate in prohibited contests and
requires bond against committing offense; declares self-incrimination no disqualification of wit-
ness ; prohibits his prosecution for offense disclosed ; authorizes conviction upon accomplice's
uncorroborated testimony; prescribes penalties.



The electors of the State of California present
to the secretary of state this petition, and re-
quest that the proposed law, amending sections
412, 413 and 413i of the Penal Code, relating to
sparring or boxing exhibitions and prohibiting
prize fights and the laying of bets or wagers
upon the result thereof, and adding a new sec-
tion to the Penal Code, numbered 414a, herein-
after set forth, be submitted to the people of
the State of California for their approval or re-
jection at the next ensuing general election, or
as provided by law.

An act to amend sections four hundred and
twelve, four hundred and thirteen, and four
hundred and thirteen and one-half of the
Penal Code relating to sparring or boxing
exhibitions and prohibiting prize fights and
the laying of bets or wagers upon the result
thereof; and to add one new section to said
Penal Code, to be numbered 414a, relating
to prize fights and boxing exhibitions, and
giving testimony in trials relating thereto.

The people of the State of California do enact
as follows:

Section 1. Section four hundred and twelve
of the Penal Code is hereby amended to read as
follows :

412. Any person, who, within this state, en-
gages in, or instigates, aids, encourages, or does
any act to further, a pugilistic contest, or fight,
or ring or prize fight, or sparring or boxing
exhibition, taking or to take place either within
or without this state, between two or more per-
sons, with or without gloves, for any price, re-
ward or compensation, directly or indirectly, or
who goes into training preparatory to such pugi-
listic contest, or fight, or ring or prize fight, or
sparring or boxing exhibition, or acts as aider,
abettor, backer, umpire, referee, trainer, second,
surgeon, or assistant, at such pugilistic contest,
or fight, or ring or prize fight, or sparring or
boxing exhibition, or who sends or publishes a



challenge or acceptance of a challenge, or who
knowingly carries or delivers such challenge or
acceptance, or who gives or takes or receives
any tickets, tokens, prize, money, or thing of
value, from any person or persons, for the pur-
pose of seeing or witnessing any such pugilistic
contest, or fight, or ring or prize fight, or spar-
ring or boxing exhibition, or who, being the
owner, lessee, agent, or occupant of any vessel,
building, hotel, room, enclosure or ground, or
any part thereof, whether for gain, hire, reward
or gratuitously or otherwise, permits the same
to be used or occupied for such a pugilistic con-
test, or fight, or ring or prize fight, or sparring
or boxing exhibition, or who lays, makes, offers
or accepts, a bet or bets, or wager or wagers,
upon the result or any feature of any pugilistic
contest, or fight, or ring or prize fight, or spar-
ring or boxing exhibition, or acts as stakeholder
of any such bet or bets, or wager or wagers,
shall be guilty of a misdemeanor, and upon con-
viction thereof, shall be fined not less than one
hundred dollars nor more than one thousand
dollars and be imprisoned in the county jail not
less than thirty days nor exceeding one year ;
provided, however, that amateur boxing exhibi-
tions may be held within this state, of a limited
number of rounds, not exceeding four of the
duration of three minutes each ; the Interval
between each round shall be one minute, and the
contestants weighing one hundred and forty-five
pounds or over shall wear gloves of not less
than eight ounces each in weight, and contest-
ants weighing under one hundred and forty-five
pounds may wear gloves of not less than six
ounces each in weight. All gloves used by con-
testants in such amateur boxing exhibitions
shall be so constructed, as that the soft padding
between the outside coverings shall be evenly
distributed over the back of said gloves and
cover the knuckles and back of the hands. And
no bandages of any kind shall be used on the.
hands or arms of the contestants. For the pur-
pose of this statute an amateur boxing exhibi-
tion shall be and Is hereby^-defined as one In
..gitized by V^ Ninety-flve



which no contestant has received or shall receive
in any form, directly or Indirectly, any money,
prfae, reward or compensation either for the
expenses of training for such contest or for
tailng part therein, except as herein expressly
provided. Nor sliaU any person appear as con-
testant in such amateur exhibition who prior
thereto has received any compensation or reward
in any form for displaying, exercising or giving
any example of his skill in or knowledge of
athletic exercises, or for rendering services of
any kind to any athletic organization or to any
person or persons as trainer, coach, instructor
or otherwise, or who shall have been employed
in any manner professionally by reason of his
athletic skill or knowledge; provided, however,
that a medal or trophy may be awarded to each
contestant in such amateur boxing exhibitions,
not to exceed in value the sum of $35.00 each,
which such medal or trophy must have engraved
thereon the name of the winner and the date of
the event ; but no portion of any admission fee
or fees charged or received for any amateur
boxing exhibition shall be paid or griven to any
contestant in such amateur boxing exhibition,
either directly or indirectly, nor shall any gift
be given to or received by such contestants for
participating In such boxing exhibition, except
said medal or trophy. At every amateur boxing
exhibition held in this state and permitted by
this section of the Penal Code, any sheriff, con-
stable, marshal, policeman or other peace officer
of the city, county or other political subdivision,
where such exhibition is being held, shall have
the right to, and it is hereby declared to be his
duty to stop such exhibition, whenever it shall
appear to him that the contestants are so un-
evenly matched or for any other reason, the said
contestants have been, or either of them, has
been seriously injured or there is danger that
said contestants, or either of them, will be se-
riously injured if such contest continues, and he
may call to his assistance in enforcing his order
to stop said exhibition, as many peace officers
or male citizens of the state as may be neces-
sary for that purpose. Provided, further, that
any contestant who shall continue to participate
in such exhibition after an order to stop such
exhibition shall have been given by such peace
officer, or who shall violate any of the regrula-
tlons herein prescribed, for governing amateur
boxing exhibitions, shall be deemed gruilty of
violating this section of the Penal Code and sub-
ject to the punishment herein provided.

Nothing in this section contained shall be con-
strued to prevent any county, city and county,
or incorporated city or town from prohibiting,
by ordinance, the holding or conducting of any
boxing exhibition, or any person from engaging
in any such boxing exhibition therein.

Section 2. Section four hundred and thirteen
of the Penal Code is hereby amended to read as
follows:

413. Every person wilfully present as a spec-
tator at any flght or contention prohibited In the
preceding section. Is guilty of a misdemeanor.

An Information may be laid before any of the
magistrates mentioned In section eight hundred
and eight of this code, that a person has taken
steps toward promoting or particinating in a con-
templated pugilistic contest, or fight, or ring or
prize fight, or sparring or boxing exhibition, pro-
hibited under the provision of section four hundred
and twelve of this code, or Is about to commit an
offense under said section four hundred and
twelve. When said information Is laid before
said magistrate, he must examine, on oath, the
informer, and any witness or witnesses he may
produce, and must take their depositions in
writing and cause them to be subscribed by the
parties making them. If It appears from the
deposition that there is just reason to fear the
commission of the offense contemplated by the
person so informed against the magistrate must
issue a warrant directed generally to the sheriff
of the county, or any constable, marshal, or
policeman in the state, reciting the substance
Of the Information and commanding the officer
forthwith to arrest the person informed against
and bring him before the magistrate. When the
person informed against Is brought before the

Nlnety-slx



magistrate, if the cnarge be controverted, the
magistrate must take testimony in relation there<
ta The evidenoe must be reduced to writing
and subscribed by the witnessea If it appears
there is no just reason to fear the commission
of the offense alleged to have been contemplated,
the person complained against must be dis-
charged. If, however, there is just reason to
fear the commission of the offense, the person
complained of must be required to enter into an
undertaking in such sum, not less than three
thousand dollars, as the magistrate may direct,
with one or more sufficient sureties, conditioned
that such person will not, for a period of one
year thereafter, commit any such contemplated
offense.

Section 3. Section four hundred and thirteen
and one-half of the Penal Code is hereby
amended to read as follows:

4 13 J. Any person or persons holding, or con-
ducting, or participating in, or present as a spec-
tator, at any boxing exhibition held on Memorial
Day, May 30, or on Sundays, shall be guilty of
a misdemeanor, and upon conviction thereof
shall be punished by fine not exceeding five
hundred dollars or by imprisonment in the county
jail not exceeding six months, or by both such
fine and imprisonment.

Section 4. A new section, to be numbered 41 4a^
is hereby added to the Penal Code to read as
follows :

414a. No person, otherwise competent as a
witness, is disqualified from testifying as such,
concerning any offense under this act, on the
ground that such testimony may incriminate
himself, but no prosecution can afterwards be
had against him for any offense concemins which
he testified. The provisions of section 1111 of
the Penal Code of this state are not applicable to



Online LibraryCalifornia Legislative Counsel Bureau California. Secretary of StateAmendments to the Constitution and proposed statutes : with arguments ... → online text (page 31 of 36)