New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-01-04


f afsir.. the pressnt Controller sought ant o.
to n,d the opiI 100 a. Ati"rnsy General Honnir.
HI. views uper TIE srb'srt very eNfc'Y '1e rpnvrr-e
~ iho-e enser-aoed by h,s predecessor N ot'a 4
Ger these cIcuusstsLots Il W. deemed moss aieat
fr t. ir'tress 4 he SsiC - ~ an m -s'A ~
.fe Court upon re subject o. the ''th Of Nay a..
motion 20 diss I've the injunction oefUe mentioned
ass argued before Jgd e Hal. ss OF toe United
; sies COuit held iB the City Il Nss York. Tue m,-
iiCn wss cep;et thus m-kiD, the injunction pep IT.
al WITH TIE opinion Of The Attorney era, IN favor
Of the decision made by the Court, tho Controller
d. ened 70 csrr the suit further. Accor rg-
~ in comp liance with the notice OF the SAFE, which
tac been pot PoI ed a. various times, the t)-t'oller
Of I'd The read for sale n the CAPITOL n TITS CITY,
public auction by s'lpu'stOn q the p'rtiss 70 the
iujurctiors limiting tie price az a sam equal 10 tee
interest ard pr,noPsl due uPoa the bonds isslei
u der the Act Of 1871 aud the cost Of sdver'zny the
sane for sale This course vss deemed proper 10 o.
tain II possible, price which would a. lesst indem-
nfy the State in par, ;or the loan of so No bid
was = ceiye1 FOR tne rOsd sni the sale vas aiOIrred
10 The .lst November, at the sane pisce II vas
row clearly evident hist the loan OF $50 was
d ioral ,oss, ard 10 preserve tue state from an
equiisbe claim Of the boadho'cers, II tas
sele Wa allowed 10 fail entirely the road WA o.
that cav cold 10 c. W ttsyio, Esq. for 81 $ OJO, he
being the highest bidder therefor who in arcor,iince
with the terms OF the SAT- psd n cash - 49, being
per cent. on that smount, and the bheoce To be
paid, a. Ter cent in 30 Gays snd the resdua IN %
dsys This amount will pay The boudhoGers, under
II law Of 49, about - per &c 1t. upou the principal
due II, m on their bouds The Controller has only to
a5d tia this result settles finally the loss Of the osn
Of tie Siste, amounting 10 100000 made Under the
law Of 1siO and which has been only question Of
tine as 10 lis certainty from the day Of The passage OF
the get Of ls47. And il sso fIrL shes ano'her evil
deuce b. ttcse when have precesed toi the disastrous
Effects upon the State Treasury, "a well rs individual
capita prvou by aRy eve coll literally
between tbs financial Interests OF the State AMI ih0se
OF incol lora:ors $500 -
TIE mill tax 50 before stated yielded for the rsst
yearareveDue ~ 81 256 500 ~ OF tins soS:.-
las - iucudir interest, was paid "a the Canal De-
pertinent. csrtte extraordinary PROVISIONS OF chap
ter b ST. Of the Laws Of l-JJ. by TIL. act the Con
troller w.s authorized to invest, iron, time to time
any OF the moneys ct the Sinking Funds. not exceed
iug in all tie sum Of $500 600 10 the tax TO DO levied
.or the fscsl year commencing 1T Of October $780,
and the proceeds of thst tsx were 10 be first applied
TO rein bu'se the amount 40 invested Ihe thrd sec
ton Ct the act provides that s6,5 900 OK the mount
above mentioned shall be paid over to the Canal
Fund to be applied IN aymeDt OF certain debe,
named in TIE fourth section OF mo act ap?ropnat-
ing mOreys 10 the payment OF canal deDts, anu Tor
" other uurposes 20 and which debts wers pressing
heavily pol that Dc psrtmen The act displayed great
Ingenuity 10 say the least Of lis peculiar provisions
Tie r reInaI feature ST WIS, authOrsiog the
Controller 20 invest any moneyso OF the sinking Funds
in H. proceeds of the tax while the fact must have
been known 10 its authors thet the Canal Debt Sink
ing Fund was the only that Contained dollar OF
ay ailabe for the pay ment OF the debts pro-
yded for in the sct over that fund the Controller
coulo exercise DO power Authority except "a Com
missioner OF the Canal Fund. He could draw no
warrant on that fund upon which toe Treasurer
could lawfully pay any money .whaever. The Au-
dtor Of the Canal Department W5s the real party IN
whom that power existed, and the name OF the fund,
p. well as Il at of the officer IN whom the power of
drawing n money from the Treasury WAS placed by
law and for whose pressing necessities the law was
enacted, were. apparently, siudiousiy concealed IN
n, bill But one reason can be assigned for this
ton sha auh faff w.
fact that the fund from which this money was al
strscted had bea, from 10 very lncep'.n cscared
by tire Constitution to DO t1viJaOie IN ne tolowin{
uords And the principal and income oil tne said
" sinking Fund sha be- sacredly applied 20 thst pur-
nose 60 whipping the principal AMI interest OF
the Canal debt. The purpose OF this whole en'ct
melt was 10 bridge the Canal Department over its
fuorcial Difficulties BY Anticipating the tex u be
levied and not only to pay back TO the Canal Debt
Sil king FuLd the principal thus contscated Tor a
time but also to make the General Fund pay the ln-
teIest at the rsto of per cent, upon this amount
thus anticipated for the benefit OF that Department
The cuouF spectacle IL thus presented and that too,
by all administration who proiessed TO be strict con
struciioniss Of the Constitution OF investing fund.-
racTedy set pant for Ole purpose D. mat instrument
in tax which had not been even levied, anu therepy
mailing i TO seize that fund for present necessities
eAlbing upon their part tact in peryertng, II not
violating constitutional provisions, equaed only IN
Their professions that they were the only true ek-
IOunoe's # thst instrument
ULder this head the Controller finds many obec-
tors TO the pesent system, ard anticipates conflicts
az TO title. lie recommends amendments 10 the law.
FIRF-INsuRANCE COMPANIES
But three Companies have commenced business
ell &c the first OF January lat, VIZ The hetropol-
tan Of New York; The Star, OF ST LasfSnce COun-
~: and TIE Su.quehsnna Of Otsego County oil of
which are joint stock Companies, and are, the Con-
troer has doubt in the possession OF the actual
capital that is required by their respective loo ahtes,
ana set forth in their articles of as5)caton IL is
evident from the failure &C several Mutual Insurance
Compar es and the crippled situation Il others, that
there something radically wrong in the law. under
which they organized, or that hey ara Aessiy
aid in prude ntly managed. The Controller believes
that the rec difficulty lies in their dep irure from the
original object for which that class Of Companies was
fcImed. The very nature and method OF tler or
SANITATION forbids wide aud extended neld OF opera
tion They are what may be called local Comp anles;
oIj from the very condition Of their capital, con-
sitting Of small notes never can succeed as compet-
tors tor an extensive and wide spread business with
the ioin,.stock Companies whose capitals are
laid up and available upon an emergency:
This is evident rom the fset that tina last mentioned
class of companies have without exception survived
the disasters Of the preselt year. Ihey continue me
prosecution Of their business and retain their credi'
with the community. Far different results have been
reached b. large portion Of the mutual companies,
thst have not corfu ed their business to their own 10
cefes. The opinion Of the Controller Feulaits TIE
sme as 10 the substant al benefits Of the mutual sys-
ten settCrh IN DIS report 81 ia1t "hteTi 10 c +0s
isnture upon that subject, even amid the disasters
which now surround that class accompanies Impressed
with the belief thai The only Improvement necessary
to fully develop the beneficial effects OF tue mutual
.ysttui of insurance /. 10 conine their operations 70
slirited territory | mot respectfully recommend
ouch en- amendment TO the General Insurance Law
IS shall confne the operations Of Mutual insurance
Companies whose capital consists N whole or IN pirI
Of orr MUM notes to the Judicial District where they
are located, making void every policy issued after
seme given day and subsctiDg the peron issuing
ore mon propery situated GU. Of the district, "