The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-02-15

ALLroED UNLAWFUL ALIENATION OF CORPORATION |

ALLn0ED UNLAWFUL ALIENATION OF CORPORATION
PR0PERTY-HI8HLY IMPORTANT PROCEEDINGS.
CoS,selius Y. s. Roosevelt Joseph b. Varnuns Simeon
draper Robert b Coleman and the Mayor Aldermen aud
Cdiaenay Of the cry Of Ne1c York THE following very
important case Just been filed The complaint Of the
plant forth that he is taxpayer of the city of
New York that on the I'D Feb s4 the Corporation in
the exercise of it, legislative powers ordinance
creating sinking fund for the redemption OF the city debt
stock and the payment OF interest," appropriang and
pleagng among ether things the net proceeds OF all real
estate belonging 10 the city, for the redemption OF the
principal The management Of the sinking fund was en-
trusted to the Mayor Comptroller and Treasurer, the
Chairman Of the Finance Committee OF the Board OF Alder
men, ard the Chairman of the Finance Committee OF the
Board Of Assistant Aldermen Who collectively are desg
ted by the general of Commissioners OF the Sink
ing Fund of the CITY 1t was provided that the Commits
sioners might sell real estate belonging TO the corporation
not in for reserved for public purposes, at
public auction such terms they might deem most
advantageous TO the public interest that AZ least
twenty days previous notice OF the tune anu
place Of such sae including description OF the property
to be Sold should be given by publication IN each OF inc
newspapers employed by the Corporation aad that no
real estate not under lease should be sold Tor less sum
than the might be appraised at by the Commits
sioners at meeting to be held within one month prior
that grant should be made BY virtue thereof ex
cept for consideration to be paid in cash. in five an
nual nsalments, scared by bond and mortgage on the
premises granted, with annual interest at the rate oi
FER cent. The existing charter as amended IN
1919 changed in respects the executive control o
the city finances: bat by an act of the Legislature OF
Goth June 1861 it enacted that the ordinance of 1874
should not be amended by the Corporation in it, legs
tive capacity without the consent OF the Legislature
except by approrriatng additional revenue to the Sink
ing Fund and that the ordinance should remain in full
force until the whole Of the debt created by virtue of the
act entitled act creating public fund TO be called
the Croton Water Stock" should be fully redeemed
The stock thus created the plaintiff asserts has not been
fully redeemed but, nevertheless, the Corporation,
dsTegarding the provisions of the amended char
ter Of 1S4a and Of the act OF the Legislature,
of1s5l and assuming, without the consent OF the state
legislature 10 net ia their legislative capacity passed
resolution adopted by the Board Of Aldermen on the st
of December, 1882 by the Assistants the 10th, and
approved by the Mayor the Goth OF the month,
that the land made on the North River with the bulk
head between Ganseyoor and Twelfth streets be sold to
D. r. Martin, any other applicant FOR the purchase
thereof and that il be the of the
Sinking Fund to fix the terms and price, The proceeds Of
ton Of the city debt The plaintiff also contends that
the land referred to in their resolution, the pro.
perty Of the Corporation not in for or reserved for
public purposes and pledged to the redemption OF
the city debts That the Mayor, &c., in violation of the
ordinance of 1884, adopted resolution fixing the terms Of
sale at twenty per cent 81 70 De pau
and mortgage five years with interest at the rate OF six
per cent per that there appraisement OF
the land made by the Street Commissioners that the
sale not made public auction but the contrary
a resolution 10 that effect offered by Recorder Tou, in
the Of the proceedings at meeting held December
1852 negatively previous notice OF sale given
by publication but the contrary, resolution pro-
vding for the publication also offered by the Recorder,
like wise negatiyed and similar disposition made
CT two further resolutions offered BY the same oacer-one
to fix xmum prize Of three hundred thousand dol
lars $500 00o) and the other to fix the highest
offered minimum price and to accept the highest of
fer made by responsible bidder above that sum- That
on the 9th December 1852 these officers notw.hstand-
ing written protest of the Recorder and the Chamber
lan adopted resolution fixing the price Of the property
at $3.50 0O0 and another resolution authorizing the Comp
to Reuben Ioyeo for the sum Of si6o ooo that there
the Mayor signed and the clerk OF the Common Coun
Of said property to Joseph B. varnum; that varnum
executed mortgage of the property to the Mayor Alder
&c, Of New York to secure the sum Of $780, 900,
payable five equal annual instruments OF $24 600 EACH
with annual interest the amount unpaid at six per
cent; that varnun and not Loveioy, gave bond and
gage differs in terms from he last men Toned resolution
and conflicts with the ordinances OF 1884 that Varnnm,
the sth January 1858 assumed 70 grant TO Robert B.
Coleman undivided half Of he aid property for half
the consideration money, subject to half Of the mort
gage and to the contained in the original grant
Varnum That although the resolution directs grant
issue to Reuben oyeoy yet he not personally in
terested in procuring the sale but the defendant Simeon
Draper was one Of the persons actually influential and
interested therein and in the profits and advantages to
be derived herefrom and the said Simeon Draper APP
pears charged the books of the Comptroller with the
directly that he paid part of the purchase money and
is directly indirectly interested in the property and
with the of payment Of twenty five per cent
Of the purchase money that at the time OF the sale
Simeon Draper officer Of the Corporation being
Of the Governors of the Almshouse and forbidden
by the existing charter amended in 1549 to be direct
y indirectly interested in the purchase OF any real
tiff also submits that the property sold Is Of greater
value he is informed and believes, than the aforesaid
price, and has been estimated by persons familiar with
real estate fully worth three hundred thousand dol
lars $500 O00) and The plaintiff charges that the sale
attempted without authority in breach Of law and
OF trust at the instance under the influence and to sub
serve the interest officer of the Corporation and
that tended to the sacrifice Of the city property the
loss of tax payers and ultimate injury Of creditors.
That the city debt now amounts to the sum Of about
fourteen millions Eve hundred and seventy eight thou
sand nine hundred and five dollars and the city property
available pay the Is of the value Of about
millions five hundred and forty two thousand one hun
dred and three dollars Wherefore, the plaintiff shows
that the record Of the pretended grants deeds oe
fe n he in y
credit of the city, and the said grants should be declared
void and delivered up and cancelled. And the plaintiff
asks the Judgment Of the court declaring the pretended
deeds void and directing them to be delivered up and
annulled and that the sale be set aside una wu
alienation OF the Corporation property. The of
the defendants has not yet been fled.