New-York tribune., 1879-11-24
TALKS ON STRIKING TOPICS:

says that the Public Burdens bill and the So
called Finance" " Bill will be revived during
the coming Winter and he expects to
see them become laws. General Ewing
tells TRIBUNE reporter that he con-
siders the nomination of Grant for the
Presidency by the Republicans " as good az
settled" and he speaks favorably OF Joel
Parker for the Democratic standard-bearcr.
General J. 5. Robinson, of Ohio says that
General Garfield will probably be elected
United States Senator; he regards Charles
Foster as one of the best political organizers
in the country, and favors his selection as
chairman of the National Republican Commit
tee
A TALK WITH CONTROLLER KELLY.
AND TAXATION-EFFFCT OF LEGISLATION RE-
GENTLY OBTAINED AND or Bills WHICH WILL
PROBABLY BE PASSED sooN--yALUATIoN oP
PROPERTY.
Controller Kelly went over the condition of the
city finances the other day in a frank talk with q
TRIBUNE reporter.
I'VE have passed the turning point" he said,
= and are on the downhil grade of expenses, debt
and taxation. Since came into this Office IN Decen-
ber 1876 the reduction Of the debt amounted up
to August last to eight aud a half millions. Bg the
end of the year the total reduction VIII have ex-
cceded ten millions At the time. the reduction
in the annual interest has been important item.
In 1877 the interest appropriation was 80. 10000.
The appropriation for 1850 is only $3.50, 900"
"Could there not be a further reduction by
system of funding the debs in five four per cent
bonds -
The difficulty is that most Of the dcbt is already
in long bonds bearing 9 or Z per cent interest.
These bonds are held for permanent investment by
wealthy people who do not want to give them M,
aud as they are worth high prcmum-about 100
the city cannot afford To buy them with
the proceeds of new bonds If we should
offer in exchange still longer bonds, say fifty years,
at low interest, the holders wonld probably refuse
to trade even In my efforts to reduce expenses
and taxation | might have accomplished much
more if it had not been lor the opposition of
Governor Robinson, who has been obstacle in
the way of systematic reform in the city govern
mcnt"
Have yOu derived much benefit from the Sink
ing Fund or Bonded Indebtcdn,s, bill which the
Governor vetoed and afterward signed in modi-
fed shape
a great deal. The bil was one Of the financial
projects Of this office. Ii does away with the vi
cons system of creating debfs TO BE- paid by taxa
ton IN the years the bonds fall due, spreads
the tax leyies for the payment OF
bonds over the whole time fer which they
have to run and enables to The large surplus
OF the sinking fund to pay of bonds BOW falling
due Which would otherwise have to he met by
heavy taxation. large amount of the city debt
perhaps scven-eghths of twas by the laws
authorizing 1t PAYABLE from taxation at maturity.
THESE bonds fall due from year To all along mp
! to IJ00-in some years very large amounts, from
ten to sixteen millions. The tax would have been
enormously heavy in those years If the old
law had stood. At the same time the sinking fund
held more bonds than under tho law ~ was required
TO protect and its revenues were very much IN ex
cess of its needs; ! useless accumulation OF money
was going on which could not be touched to pay off
the bonds falling anil tO relieve flio
people of taxation. The new law, which the Gov
ernor finally signed, after all the points ho
made against ii had been met enables MS To use tho
surplus in the sinking fnndto pay of these taxation
bonds and allows tho Board of AppOrtlOument Id
issue new bonds running for long periods for any
deficiencies III the revenues, so that the taxation
in any year for the payment OF the debt shall not DO
| over two millions"
PRACTICAL WORKING OF THE SYSTEM.
"What has been the practical working Of
the system since it went into operation in 1s7S'"
ITO reduce taxation this year three and half
million dollars. The amount of bonds falling duo
four and a half millions. We put on a tax to
raise one million and took the rest ont Of the
plus of the sinking fund. When the bill was
passed that fund had ten millions more than it
could possibly use 10 pay on che debt for
which it bound TO provide. In 1850 two and
millions of bonds tall due. Crdcr an opinion Of tho
Corporation Counsel Il is proposed 10 rats no tax
for TINS, but, to pay the whole amount from tho
sinking fund"
Are there other benefits derived from the law -
Yes. Before its passage the new bonds REQUIRED
| TO be issued for bridge purposes. annexation I'M
proycments. and 80 forth, had - ID" paid by tax
atlOn levied IN the years they fell due. Now we can
levy proportional tax each year through the whole
| period Tor which such bonds un There Is another
| important point We Inherited q large debt
| from the Tweed regime IN the form OF
assessment bonds which were intended to
be paid by special taxes on the property BEN
eiited by certain Improvements, but which The
holders If such property have shifted upon the city
in yaTonf ,Sec Ts lt t1nyn court %f'so HS
millions. Then there was series of dciciencics
| going back 10 1859. amounting 10 eiaht millions
] The law enables lis 10 provide for this debt by
| issuing long bonds without fresh taxation and 10
bnug IN the sinking fund through the agency Ut
this extension OF time to cancel ,e deb' gradua,y
"What about yonr Public Burdens bill v hlch
the Governor killed. Ale you going to re'veit
this Winter 1"
| tackled on by members of TIE Legislature 10 grind
their own axes. As revived the blll will he clean
one representing The ideas of The Controllers Office.
| think it Will save the city TWO millions year.
| Tie constitutional objections made 10 II weic ia
reality political objections put up 10y NV opponents
III this city. The bill gives the Board Ot E>t,mate
full control municipal expenses and enables 10
to cut off useless officials now fastened upOn tho
courts and other branches of the city yovcrnment
by State law. and reduce cNtravagant salaries"
And the Finance bill sO-caiicdI VIII that
come mp aganT
IL hope to see that passed too II would save tho
city great deal OF money by doing away with ihc
system of unbalanced bids for city WORK. making
the city sure of getting It's money tom .ndi' duals
| for local Improvement taxes, and provid-
ing for a nrd scrutiny of contracts aud
specifications. The measure Is an important feature
of the reforms projected by this Office which Gov
| ernor Robinson has anita gonzcd. People Tho do
| not know the facts suppose that my quarrel with
the Governor was purely political one. but Its
chief cause was his stubborn hostility 10 measures
designed 10 protect the city aud reduce the burdens
| OF IT'S government
TOTAL DEBT OF TIIE CITY
"Mr. Kelly, what is the total debt of Ncw-Yorl
cityp "
"On the 1st of August the grand total was
SI37 900, ,OOO Deduct the sinking fund.- amount