New-York tribune., 1884-12-06
THE NEW STATE AMENDMENT
HOW 1T AFFECTS THE SINKING FUND.
Mr.. LACoMBE's OPINION REGARDED AS SOUND
WHAT SEVERAL LAWYERS SAY.

MIR. LACOMBES OPINION REGARDED AS SoONp
WHAT SEVERAL LAWYERS SAY.
The opinion of the Corporation Counsel
that the amount in the Sinking Fund cannot be deducted
or Disseminated from the total of the bonded dent anu
that therefore the Indebtedness of the City of Newfork
is already beyond the limit sanctioned by the new Con
situtional Amendment is regarded as sound by many
promincnt lawyers The final determination OF thls
point must however. be left to the courts. and 1t Is
hoped that test will he made and submitted Tor
adjudication possible, in order that the
nightmare of possible deficiency of funds for munich
pa purposes may not continue to disturb the sumDers
of the officials Of the city government.
In response to the questions Of TRIBUNE reporter
with regard to this subject William Allen Butler said
yesterday am very much IN favor of the Consltu
tiona Amendment and Is only carrying ont the recon-
mcndation of the Commission appointed by Governor
Tidcn in 1879 to devise plans for the governu ent
o cities in the State OF Ncw-York, OF which william NJ
Evarts chairman ana member. 1t
Is carrying ont tho principle Of that report;
or rather the constitutional Amendment Is
III the direction OF restriction upon the dcbtcrcating
power OF cities which considered by that Collna-
sion and in respect to which 1t reported Constitutional
Amendment To meet the existing mischief Of Oycrborrow
INK by cities but it did not undertake to fix the limit by
percentage o the assessed valuation OF real estate. The
practical question which now seems to be In
volyed in some doubt relates to the ascertain
mcnt OF the valuation OF the property
IN respect Ia which the percentage apples anu rs 10
extent To which all the obligations o the city are to be
Included In ts IndrDcdhe,s. The opinion of Cor ora
ton Counsel Ilcombc Ia me to bc very thorough
investigation oi tue subject ANA particularly ul tIic ntter
question as applcs tp The socks and bonds held by thc
Commissioners of the sinking Fund, aud the inquiry
Nn''uor thry may ne "oducle' iIoh uo
gross apparent indebtedness of the city.
In the hasty examination that have been able to give
to u II Secms to me thit the views expressed III thr
opinion are sound. hut should want To give inc SUBJECT
Soaucc apo1 i VIA Geraim,y it Is quite likely i6S the
amendment will have to he construed ny the conrs be
Tore any hual conclusion can be reached a' TO N elects
THE COURTS MUST DECIDE.
John H. Strahan briefly gave his views Is follows:
agree with the Corporation Counsel IN his view OF the
matter. II remains for him to prepare test case
rs possible or course the courts must decide
about it, and decision should bc obtained speedily as
possible, that II "a adverse to the view taken by the
Corporation Counsel there viii Ice time for the Leslsa-
tule To act before auphrnmcut ihere VIII po no
dihcty growing ont oi It. Tue Legislature can pass an
ae, proNdg Ior raising IA" necessary money III so'iI
other way than 10y the sSuc o bonds 1t can be raised
lanes C. Carter said: without undertaking to say
what my conclusion might be II were called upon 10
maze such examination Of the question as MI LA
comc has mai, wh say that ms opinion uee's
the SUBJECT IN the risnt manner ana wh great apnty
and. 1t seems to his conclusions are correct Inc
notion that in ascertaning thc amount Of the indebted
ness Of the city OF New.forS ior the PIr-
pose Of determining whether any audl-
uOhai debt may DE craei, ana II So now now
much, the bonds neld by the sinking Fund Commission
bonds held Tor the special 6enent
OF the city they must continue To
long rs anythinS remains due TO such classes Ol credit
Ii the SlnAIng tund Commissioners merely Dou-ht
mp bonds OF cy and held them lOr the Dech oi the
Guy alone wtnOnt any discrimination aS 10 me purpose
object ana without power To dispose OF the pohns
otherwise than to surrender them Tor payment
and pad to turn over the FUNDS 10 the city Treas
ury, question might be raised which VIII not uldcI
take To answer-wnchcr such bonds might not IIJ Dc
let odt OF view III computing Tor the pulpost III
tie the Indebtedness O the city But 40 not
unders dnd this be the way III when great part vi
the bonds al least now III the SINKING Iuht
are heidi with regard to the tOH'ttutlOhii
Amendment | ;u lrl1l I |
restrictions municipalities to prevent them roh en-
tcrng into debt beyond ii certain point IL mas pcch one
Ot the greatest evils under winch We nave idDoicu.
George H. Andrews SAID " IL seems 10 me pf'posicI-
Tor the ty restricted by the gross oUiStohs
Instead ot the net obligations wnch Wouid p,
result the credits IN the SINKING fuh'
deducted, and am not prepared 10 say Ia INC
Opni If counsel tnat tat H. not Sood law
II H. law the only thing tha can De u"nc II
invoke legislative action. Ihc provisions iot tno
sinking FUND clumsy and mprcucaDie III thclr u'I-
matc OutcOnc, submitted To the legsli iaSl
wIn,cr That they wcre ana unless modlh'N ~ sum-
power VIII indly Result in great INJURY dhd ehpHIha9
lnent. Tnc present complication VIII probaply serve u
promote cary solution uI the dllhcuIllcs "h'H 'H'
OIginIl.itiun vi mat iunl presents