New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-17


the city debt" which appeared Tae World on the ON
inst, first denies having stated at Albany That
the past due bonds tabout F22OoVOOo were
only worth two-thrds their face value by simply saying
This s not true" To confue this assertion "o Id
simply refer Mr. Kelly file OF HE Herald for harch
last C7thj in which he win find the following coaVera
reported reference the amount OF tine city
debt."
Herald rcpresentatiye-what IS the real indebtedness
OF The CITY 81 New-IOrk -,
Is. Key-Tuer, Is great Misunderstanding ana MS
apprehension on tms subject among ptoi' , i
The obligations Of the city IN the shape 81 Ooaf an
$1,000 600, but the city Is Itself hobes %; n'iy
T3OOHoOO OF these bonds ana stools Wn l ,, {" re
vested IN the sinking fund while over $50 op"o q" 'le
amount ne In the shape OF as,t~silcl' u,.e'' ~.
the amount % about SljOOO.OOO Will Dt ultimately l'
inoulscd 10 the Treasury from tle collection OF 1855
henl-, and over o5oJOJJO axe n revenue "oh.' 80
ia anticipation Of the taxes o. the past year. Nulcn nave
10 be collected.
His explanations regarding unpaid assessments are
a. follows:
II las been published, stated by you that o. the
f22,OO0OOO Of unpaid aSsesslucuts MOI more '"in
eHO0OOOO VIII ever Oe corrected Is ln47 s'''' n'' '
40: 1t Is a misunderstanding. What have stated IN
this matter tuat - JJopJD OF OF unpaid
assessments Will probably never Dee collected or rith j.
that deficiency, arising from various c'n,es 10 ,AJ
amount of perhaps - 600 0Or, Will have 20 he pioNuu
5T the issIe 0f bond, 20 Ply assessment bonds "ch
have been ISSUED for street improvements. g.. a..
Ine inquiry hts been made no" thl- 9.heen'' n 'io
payment OF assessments ha- artist H. ANA the 1tu "'
been also asked there any WHO 10 not pay th'f 49,
\ eat number OF assessments have been vacated ny
tic courts upon various technical grounds, Wh.h nave
class WnO haze not paid tner assessments A.'.' ~.
cson OF tue court-, a7o' church property u' gre" ~"
lieycd from the DatmcuI OF assessments lai-t
avn i,,''rtr ,, -, ,lt Of ta, n,.f,icley that
has 10 be- provided for. Another class oil ptitos wa"
Rave NOT pait assessments ale ;ose owning property %"
street. Wuicn have been repaved H"m the piN''''' 'l
asst soneut bonds. the expense OF which cnnDt DE- "a
s-sy under sprrii Laws. Assessment bonds, iuo nave
been issued Tor the impro' nt oil avenues ann SIRIUS
.. tHf al - Dol Y
Df wA.cn can by law be- assessed on p.FAtc properly
Derehtted by the Improvements.
The simple assertion OF Mr. Kelly that TINS Is not
true does 10; appear bo borue oa. h the above te
corded facts Furthermore, ind n1 uirai record
where, rs Nr. Kelly now says the estimated amount
readable from assessments o pay these bonds u PUG
among the assets 40 My -lJOOOOOo but Oh the MIST
page OF The City Rccord, of august 81, l-71I Lnd
statement which opens as follows:
The bonded debt OF The corporation consists %; tree
distinct Glasses Of stocks and bonds which are issued Tor
fs.snf manner Tlcv ARE dl-n-uisret a- bond ~
revenue bonds.
The assessment bonds are then added n ut tA..-' e
value. namely, @42,lIi400! NJ Kelly's above s...-
meut., and comment, thereon. answer his assumed
plan rcfutat0n" of charge number one.
Second: Regarding the charge u " irre-niauty IN
crcditins up taxes not levied nor couhrn even uu
he last D., Ottolcrj as asset" in balance sheet
dated August 1. on this suffice; NJ Kelly says;
TIE taxes are n city credit The first day of J1nnary
M the wear for which tuey are levied, and are drawn
g,tu-f no. nav appropriations by the ,sir % revenue
bonds in anticipation OF Tie collection ga '"e 'No' Va
That taxes " are drawn AGAINST" by the issue NJ
revenue bonds is, to say The least rather humorous
way OF putting it n a merchant, VINO has bond and
mortgage on his premises of say Sl2OOooOoO should
issue short notes. payable ~ bauk for p3JO0O 900 more
or should issue chate mortgage ON h' 'ock 10 trade
for that amount payable from bis first maturing Old, Pc
cei,able be- would be in much the same tx rs TINS cy Is
AT present and any merchant o. banker accustomed 10
making ND balance Sheet" would be looked upon as
of upsouud mind who would claim that his noirs aId
cbattcl mortgage actay issued and outstndiu-' we're
NOT N! actual debt on liability This whole question may
bc safely left 20 practical aud pracuced mercantile
community like NeW-York FOR their decision.
Third: Mr. Kelly says the actual amount Of net debt
sscertained from q statement OF liabilities ana assets
has nothing to do with the in crest account ~! 4ls
would be certainly a fortunate discovery, always pro-
v!cd IL were really fact ana II Mr.. Kelly Wall only
draw ON tie future sufficiently to pay both the debt and
The interest the people OF NcwYork would cheerluiy
place his statue in the City Hall Park as " the greatest
politician Of the past thirty years t thi' interest dc
count is rcanya serious matter, footing mp as 10 does
,cc,rliu, IN the August statement, S9l76,jOl during
the past year. exclusive OF the amount by law charge
able 10 the sinking Fund FOR the payment OF interest ON
the city debt" This expression is copied from tie oH
cial record. The Controller now says that me city
pays interest the Whole gross amount q It's ooid
Ient botl permanent and temporary including the
amount held by the sinking Fund.-
Well turning again 10 line Ctty Record OF August 81
for information on thls head. hnd Che following:
SCHEDULE F.
Statement Of the Funded Deot, December 81, 1870.
showing the amount due iu each year "aru tAe Doh5
and stocks mature payable FROM the >inhiE tund 'na
from taxation aud also the amounts naacr different
he rates of interest on the stocks and bonds class
flied as follows: ..... o.,
At per cent go - ~ %
80 per -. 1-'-'--1 u,
Al = per cent. '''''f''t '
Total. slI9.63l BIB Is
There is something very peculiar about these city debt
di.crcoancle, which certainly still requires y,utatus
N,yor Ely the Constitutional Commission, and The
pr.eut Controller nave already been quoted ID previous
,uhlc t,n- And now clap the climax, cx-Contfollcr
Green. statement OF February, 1870, IN response 10
resolution of ht Board OF Aldermen ASKING for the facts,
reads as follows:
The bonded debit as 10 existed .ccmher 81 l-Ti was:
s snt ,i.r 2ll 5j7 "a
,s s.,s.l5 bond. payable wholly or in
mart irons asse-,ile nts --------. Zo-1l0Do 90
-.,nI. PAYABLE from bui.iin- len........ 300 10
Revenue bonds for ls1 l--..-.-.......- 24OEJOO 90
T,tal ............... Sal. s03.75s OO
Less securities Ae.d by tnc sinking fund 26Glj77- 90
Total net bonded indebtedness .......sIl5l-79> 90
In addition the securities Held by thc ,ihub iuho
There Wa. cash in the Treasury 20 Us cro lo thr f
Ianption OF the city deo, December 81. 1874. sos
NH ~ and also bonds and mort gage, applicable when
collected 10 tie same purpose, e1lOlu0 o.
This would leave the net debt. at that ume' slli269-
363 Finally the present Controller Is just out With lis
abatement 70 October 81, in which He gives Us sil au-
other version The material items from A latest state
meut are as follows
drawn. payaba from taxation. S2Gl5jG55 o.
New works aud Improvements, p1fdDe .... .-
from Issue Of bonds. 7'J'V'' -
Thus FAR THIS F'''Af'f'f - 10
paid out from -pec.al and tiust actuint-,
l o ar'a .................. 1s.52iOSs 60