New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-12
THE CITY'S BONDED DEBT.

CONTROLLER KELLY'S PLAN EXPLAINED
INTEREST IN THE sUDEcT-THE CONTROLLER pkk-
sES1s THE FEATURES OF HIS SCHEME CLEARLY
AND FULLY--siAKING THE TAXPAYERS BURDENS
AS LIGHT AS POSSIBLE
The MAYORS message transmitting to the Alder
men Controller Kely's bill and plan for the pay
ment of the citys bonded debt OF p9O,0OO,OoO. py
means of the sinking fund, was the chief topic OF
conversation in political and financial circles yester-
day. especially among that class of capitalists VINO
invest largely in city securities. To- politicians IL
was more especially interesting rs reannonnce-
mcnt in unequlvocal terms, that Mr. Kelly
proposes to continue In the course OF ecoh-
omy which resulted i'll the reduction OF
the city debt by S2,O00,O00 III the Irst
eight months of his administration. prominent
politician familiar with ring operations sad IL WAS
evident that the stealing days were over as 1ar
as 1t was possible for the Controller to prevent dis
honesty 1t was remarked by leading cap
raist that heretofore the issues of bonds had
been made without foresight, or really any
knowledge of the condition of the City IL
nances. and hence it had happened that the
bonds due IN some years were greatly IN excess OF
those of other years The equalization of the bonds
would prove great relief to taxpayers, and MIR.
Kelly,s plan if carried ont, would prove great
boon to this class at least
The interest manifested in the subject led to re-
porter's APPLYING TO Mr. Kelly for u more elaborate
explanation of his scheme, in form more familiar
and clear to the general public than his official COM
muucation. Mr.. Kelly at first excused himself, on
the plea of overwhelming business, but later IN the
day. on representations of the general interest taken
in the subject he sat down resignedly and submitted
replies to various questions put to him.
THE TALK WITH MIR. KELLY
"What is the object and purpose of this
bill which l. to be presented TO the Legislature
asked the reporter.
.The general and great object OF the measure is two
fold" Mr. Kelly replied FIRST. to provide for the pay
mcnt of the present city bonded debt IN the easiest aud
most equitable and the least ouerous to the peo-
pie Secondly TO put such restrictions upon the 1ntufc
issue Of stocks and bonds will prevent any increase OF
the city debt that Is not actually necessary uiuer He
sanction and approval Of the city authorities"
What Is your plan for paying the city debt !
The city bonded aci Is large AID Is vol known
and mas .eu the subact Of much public discussion on
account of the great burden in carrying 1t aud providing
for its payment Public meetings OF leading ct2cis
have been held and committees appointed, nut 10
pr ctlclllc method has been Suggested. by which the
copc OF tins city would I've relieved OF the heavy taxa
tou that thr payment of the debt would i'm
ro.o under existing laws. The plans proposed
have becn made without sufficient knowledge Of
,pr facts relating to the bonded debt. and have
consequently been crude and Intellectual For example,
il la, been proposed to fdn1 thu city debt ~ lower
rate oi interest and issue bonds for longer terms
Tnsc who favor This plan do not consider the fact that
the bonded debt OF stocks and bonds bearing IN
lcrrSt ~ q lcg cent AN average, and that
the city has no optional power to call these
Bonds IN and pay them on from the proceeds ~
bord- issued at lower rates Of interest Ike
the General Government and that bondholdero viii not
give them mp their los. S,l the necessity Is ur-
gent tnai should be adopted ia take care
Of The c!ty d,b regard Ia IT. payment In the ca-ies
and best manner The plan p;opose. In The bill lust
prepared T. comprehensive IA It's provisions. embracing
IN, whole urrsr, city bonded debt. excepting revenue
bon. al .y prov drd foI, aud placing the control and
management entirely IN the bands al the Commission
cr, 81 the sinking Fund UNDERGONE general system. the
operation 81 which viii simplicity ana regularity
iu providing foi IT. payment oUt OF the snkiu- idnd
prrAIs oT TuE SYSTEM.
Win YOU plcise state. Nj Kelly. In what manner this
Is To be dnnc!"
THE sinking fund l. already pledged FOR the payment
ofn p.rt nf the cay debit and hold. nearly rlootDouO
OF securities above that amount B' applying The sink
ins fund t. i, whole existing city bonded debt. except
irvcrur bonds. aud lyng th Commissioners of the sink
Ing fund authority ulatc thc payment NJ bonds nj
rr,utltf ht of tie fund. aUd D., moderate taxa
ton mt rxc,ru: - OOJOOp n any one year: aud also
20 issuc boud- hon necessary on account ol any Zen
oi,uc, ~ mean. the snkn- iund that may exist al
uut tur iur thr pui Oi extending the lai ntS
and distributing thI eluiiahy over number OF
Years The rcycuu,s eli the sinking inud are constantly
rtcu,nulntue and II estimated that the fund VIII
ampl, provide Tor thc extinction OF The bonded debt
gradually. without imposing excessive taxation for lis
urNutui az any time. which viii De- necessary unGci the
provision, 81 Law Authorizing hc iu" VI large part ot
hc bi and mlaius TIE principal iayH1o from taxa
ton"
"Niat amour, of bonds is payable by law from taxa
tipi ut maturity ?"
tIc amount cf cljy bond. payable rom taxo' ont
standme coy December ~, 1871, was F999"Op~' - 4:
the Amount NOW ayJbc from the sinking fund by law.
&, 81 IluoI3 H. Mark otl al funded dcot ~ 1l2l-
iioIg ID, a. shown hy IA, following tabular exhibit ~
tnr waoi. bonded Indebtedness, OF thr c!ty, except rcv
uu. bonds ncIdiu a-..rsiu'Ht bonds. From TINS II
viii hc ~, that tine amounts falling due ana payable
nom taN nu ia SO ard various other years. are VERY
lprlc ranging from sl.tbOOu ir -"ur years, q the
ruornuu, suu 81 more Than sI6.OOo0oo IN a single
year
statement ~ III funded dent December 81 1871 showing the
amount auc each yrat. rs Hbir from the sinhny lui
also tAr t..ouni al l>-c~rilcn.
bonds outstanding tAc date and payable IN each
NtnE
ANN "a, ,ur p., Amount ofTo, AL
N.a.. nbi. nom. ra., fu,t 4 4
AZ. Ft. T,sn'lup. 81 p,tt Bonds and stocks