The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-02-01


The whole history Of the pledged fund. nom 1879
TO the present time, as given In subsequent part Of
against the sale Of the productive property Of the
city unless it was indispensable for the ultimate pay
ment of the debt The act Of 1872 pledged all the revc-
nues of the city until the final redemption o. the
stock. The ordinance of August g. 1913. establishing
sinking fund only pledged certain revenues, aud
twenty-five per cent OF the net proceeds of all sales Of
real estate belonging to the Corporation. But no
power was specially given in either case to sell
property by the commissioners of the fund. This was
varied in tie ordinance OF lS44. as before given.
1t is vital principle Of sinking fund, so far as
the public creditor is concerned to keep the princi-
pal OF the pledged fund unbroken and prod lctye;
and hence provision was made for separating the
fund for the payment Of principal from that wach
was pledged for the payment OF interest; and il the
latter is insufficient 10 meet the accraing interest.
resort must be had not TO sale Of the piers, or OF
the three millions of stocks in our hands, pied ed Tor
the principal, but it must be made up by taxation.
The sale OF the vacant and unproductve lots Is
very different matter 1t is consistent with the ordi-
nance, ard beneficial to the pubic creditor, to sell
the vacant lots and convert them into securities
paying fair interest.
in the proceedings before Judge Emmet. in the
case leor, fe.eled to, ere Ct the points taken is
that the ord of 22d February, lS4l, organizing
the sinking fund and designating the property
pledged, aid the commissioners to manage it, was
abrogated by the amendment to the city after in
le43 In the powers given to the finance department;
and this position is sustained by Judge Emmett
This is a matter Of too much Importance, in my
Judgment to be yielded, until the question Is settled
by the Court Of Appeals In the meantime, 1t is
proper to review the history of the debt from its
commencement to satisfy ourselves that it is incum
bent on us to discharge our obligations under the
ordinance OF lSii, until released from them by the
court Of last resort.
In the year 1912, the Mayor, Aldermen, and com
monay of the city Of New York presented q
memorial to the Legislature, in which It was stated
that they had incurred large expenses in erecting
"
Ienscs in carrying into effect the plans of the
miseioncrs for opening streets and avenues that
they had raised money on their corporate bonds, and
had issued other bonds as security for balan
against them and that the necessary sum for OPEN
ing the avenues they despair of being able to rise
without legislative interference in their behalf On
this memorial the Legislature passed an act (chap.
SO of 1922 authorizing the Corporation to create
public stock of $500 900, called The New York
City Stock" and authorized the Comptroller to is
sue certificates of stock, and keep the transfers
thereof, under the direction of the Common Coun-
Gil This act pledged the faith of the Mayor, Alder
men, and Commonaty and the Legislature also
pledged and appropriated the revenues OF the
city, until the final redemption OF the stock in the
following FORM viz -
Sec. 49, And he it further enacted That the faith of
he said Mayor Aldermen and Commonslty of the city
Of New York, sha be pledged for the final redemption
and payment OF the stock which shall may created
pursuant 10 the provisions of this act, and that all and
singular the Of said Mayor Aldermen aud Com
monay, shall be and they are hereby pledged aud ap-
porraied for the payment of the interest which shah
become due on the said stock, and shall continue
pledged until the final redemption OF the said stock; and
that in the said be sufficient ,atisfy
and the whole Of the said interest then and in that
case the faith of the State shall be- and the is
hereby Iedged to pass such act and acts shall from
time to time be necessary. authorizing the Mayor Re-
corder and Aldermen of the said city to raise BY tax
habants situate within the said city such sum
and sums OF money shall and may be requisite to sup
ply any and every such deficiency.
This provision, recognizing the power of the Legis
To yla n op6 IF
the city for the payment OF Interest nits debt,
not only acted on and acquesced in at that time in
relation to the debt Of $500 0C0 but the same act has
been referred to and made part of all the laws for
borrowing money for the construction the Croton
Aqueduct and for all other purposes for period of
forty years.
In is2o the Corporation had occasion for loan Of
500 900 and an act passed authorizing it under
the law of 1872. In authorizing this additional loan,
care was taken to insert a section that this act
should not deprive the holders Of the stock issued
under the former act OF any Lien which they are
entitled to by said act upon the revenues of the said
mayor, aldermen, and commonalty"
In 1875 another law was passed (chap 93) for
borrowing ,000 to reimburse the money Dor
piled ito no other purpose whatever" This act re-
peated the provision, that nothing in it should be
construed as to affect the lien the city property
OF the holders ofstock previously issued.
The next law authorizing loan was in 1884,
CHAP. 256 for commencing the construction Of the
Croton Aqueduct The amount was two and half
millions of dollars at five per cent. Tie provisions
OF the act OF 1872 were made applicable to this loan.
In 1896, an act was passed. (chap. 255,) aathDrZ-
ing loan OF $780, Geo to be made, called Public
Building Stock" The act OF 1872 was made apIli-
cable to this loan; and the 5th section pledged the
alnshouse property at Bellevue for the payment Of
the dett.
In 1888 an act was passed, (chap. l27,) authoriz-
ing loan of three millions Of dollars for the Croton
Aqueduct Tie 9Th see ton declares that all the laws
heIetoae passed, pled2ing tie faith of the city, and
providing sinking fund for the redemption Of the
debt. are made applicable to this stock
In 1910 an act was passed tchap. lI5) authorizing
another lean OF three millions OF dollars for the Gro
ton Aeueduc, and the provisions OF the act OF 1888
were made applicable to this oan In the same year
an act CHAP 521) was passed for funding floating
debt OF 100000 This loan was to be paid in seven
years, by taxation.
Ia ls4l another act was passed (chap 306D for
borrowing $500 600 for tie Croton Aquedact. All
laws pedging funds Tor the payment OF the debt
were made applicable to this stock with an addition
al section authorizing the supervisors to levy by tax
such an amount as may be necessary TO dciray the
int,res. on the water stock.
In 1913 the supervisors authorized to levy
tax for the payment Of interest The water dis
trct extending to Twenty third treet as far IS Lex
ington avenue and from thence u tie East river,
high "a Twenty eighth street.
In ls45 a loan Of $3.50 600 was authorized, REIN
bursabe by taxation This was public binding stock
No.2. At tie same session memorial from the
Common Council was presented to the Legislature
with bill for borrowing S5OOG00 for the Croton
Aqueduc This act, in all us details, had the sane
ton OF tie Common Council Inc Committee on
Finance in January, l5, made report on the
communication Of the Comptroller, for borrowing
$500 Geo. TO make up the sum required for the Gro
ton Aqueduct On account cf the expenses Of the High
bridge.
In this report the committee recommended that a
section be added to the law applied for by which
the provisions OF tie ordinance OF the Common
Council, passed August 8, l.l3, and re-enactel by
the Common Council, I'D February, l54l, providing
fer the redemption Of the city debt and the payment
or the interest thereon, and which have been Fecog
nzed in all tie acts in relation to supplying the city
OF New York with pure and wholesome water, may
he fully recognized by TIE State in the act 10 be a-
pied or; ard that authority may 10 the same act be
granted to the Common Council to establish the
sane mere permanently by the appointment Of the
executive officer having IN charge all the real estate
stock and bonds, belonging 70 the sinking fund, for
term of years" The Counsel to the Corporation