New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-12-05
PROFITS ON WARDS TRANSACTIONS.
THEY WERE DRAWN OUT BY RELATIVES OF THE
FIRMs MEMBERs.

Mayor Grace.
PROFITS ON WARDS TRANSACTIONS.
THEY WERE DRAWN OUT BY RELATIVES OF THE
FIRMS MEMBERS.
Charles b. Alexander yesterday resumed his
cross-exalnnation OF George L. Spencer in the Holt
Warner CASE. Mr. Alexander read list OF Wards min
ing stock investments from 1879 to 1882, mostly in
Evening star On June 10, 1881, 100 shares in that
stock had annexed TO them "W. r.. Grace" on Deccm-
Der IL W. r. Grace & Co. had 100 shares OF the same
stock These Items appeared III warts lnuViH H
was any cash actually paid on Hour contracts. MT
Spencer sa there wa acCoruihE 10 III, oeIn I'll
and read of payments maze on ah,h cOhtict' p9 - ~
and X. Is. LVermorr in November 1873 various othrr
entries purpnrtiug to be cash on contacts wer" rcad
For July p iss3 Mr. Spencer found an entry Of tol'oo
and another - $3.50. ono marked city the other
ey speea H%G pas GFt AnoinsF Of Sl'ooo
Mr. Alexander next took up General Grants once ON
was the office OF the Mexican Southern Runway Nj
Spencer said. Mcssrs Work aud Warner had offices al
i6iuur as did the firm Of Davies, Work McNamcc OF
which L. = Grant lr, was once partner Mf spencer
that he mad any suspicion that WARTS opera
Mr. Acxandcr-WhaI did Ward say to you about city
through Mr.. Fish aud Mr.. Tappan.
O.-What about aquoduct c1utractsl Ale told me
with me city anihore, aud get a chance got
the water works. thnK he mentioned the
Q~What WAS or IS the relation between the Elmapo
aud the Euc Railroad Al do not know. All the
prominent houses In Wall street loaned Il. money on coz
lateral AT various times Ward bought Marine Bank
stock lie always held moro or less Of 1t up to INC
the hrm and Ward together held less
than 200 shares A. for the 81 Ion,s payments, =
stubs and OF these drew out more than thcy PIT
HE peope Who drew ont the profits. were in many
instances closely connected With members Of the hrm'
Mr. Ac1andcr-Wrfe there not times when tho
amounts Of actual money paid to Grant Il Ward hy Mr.
paid to HINT Ayes, sir; there were times when the
moneys had put exceeded the sums drawn out by
General IiaOblriI intend to prove that as par; Of
Mr Aicxandcr-Dn the sum IN excess pnt in at any
time reach >3DOOOoi
Mr. spcmc,r-ies sir, think the reached that
THE SINKING FUND PART OF TIE DEBT
TIE INJUNCTION AGAINST THE ISSUE OF DOCK
BONDS CONIiNUID ny JUDGE DAILY.
The test suit begun July - by Simon Sterne
on behalf OF tn. Bank FOR Savings in the CITY Of New
York asking that Mayor and Controller be restrained
from signing advertising auI Issuing dock bonds OF tho
city which, II claimed were about 10 be Issued In
violation of tho constitutional amendment prohibiting
the city from becoming indebted % an amount exceed
ing ten per cent OF the assessed value Of real estate
within thr city'- limits, met by demurrer inter
po.cd by CORPORATION Counsel l.. Henry Laconbc. In
the meantime the city authorities were temporarily
enioned from Issuing the bonds The decision OF Judge
T. f. DAILY f. the Court OF Common Pleas oycrrul!ns the
demurrer and continuing the Injunction was handed
on Jull o. 1883. the Commissioners OF the sinking
Fund directed lie Controller 10 advertise AMI Issue dock
,uds 10 Inc amount - 1000 600 upon the rrqultion
OF tho Dock department ioT inc hulIdluS ana Irp"Hu-
Of docks. piers and WhtrYcA THIS acton Is brought 10
restrain such Issue uI1h tle E,1unu my ,ln 'Ii,
aud ala exceed It al tlc time when the prohibiioy
amendment went into eff Ct Plaintiffs ALICE That the
Deicnaani- deny that It exceeded SD2.G9l 500 The
amount Of the city bonds purchased from dino to time
and held by the Commissioners Of the sinking Fund,
, ,I,frincs. Of tho civ o that amount and main.
tits claiming that such bonds are held by tho Commits
soncr a. OF The trust funds with which they
rrc ,urcla rd the same As any other authorized IN
vcstmcn and valid outstanding ob cations 81 the
city. II the latter contention be correct then the In
when su.h limit fixed. by SlOO2G.s2l -. and tho
proposed issue Of dock bonds not being within the con
,ttutonh exception, would bc unauthorized
After examining at great length the various enact
mcnts under which the Sinking Fund was created and
has be, maintained he continues:
The accumuaiions OF the fund are today TO tho eT-
OF over S4 100000, rcpeonted by city bonds In
which, ohoIcnt to law, tho Commissioners have invest
cd the trust fund. What Is Thus Accumulated I'm the
sinking Fund under solemn compact Of the state
Win the creditors Of the cityI Surely evil
deucc, of debt which have bccU redeemed and cxtln-
that the city bonds held investments by the Sinking
Fund COui ,sOn"rs are subS,tug, outstanding obiga-
lions Of The city unll INC "hoo dent Il" which they are
part redeemed that they are marketable securities
To- be- applied undor the direction OF tho Legislature II
the emergency should arse That requires IT, 10 the re-
demptiOn OF the city debt as 1t falls due; and
! for
cclled until the redemption OF the whole debt
They must therefore be deemed to be outstanding as
part ~ the debt u the city ana must be taken into
count IN computing the amount OF Its Indebtedness with
reference power to Incur additional debt since the
adoutio OF the Constitutional limit The demurrer 10
the complaint should be Oyerrulct and the injunction
continued.
Mayor Grace In regard to the decision. said:
Think the ruling IL just one. have held al along
that the bonds the Sultng Fund form part OF the
civ debit and cannot be deducted from the cy's obig-
tions The Dock Department VIII have to he provided
for IN some other way than by the Issue OF longtime
bonds.
Controller Iocws opinion was this:
Tho decision uphold, the views Of the Sinking Fund
bo to prevent OF bonds for the Dock Depart
mcnt. That Department VIII have to 20 to Albany when
the Legislature aud hayO enabling act pas icd,
providing the issue by the city Of certain amount OF
revenue bonds through the medium OF tho Board OF kst
mate
EXORBITANT DEMANDS CUT DOWN.
CHARGES or MAYOR GRACE. GENERAL SMITH AND
J. d. FISH SEVERELY CRITICIZED.
The claim for nearly $4,000 for c0mpensa-
tion OF Commissioners william II. Grace, General Will
lam f. Smith and James d. Fish and tho lawyers, icorks
and employed IN the condemnation OF land for the
Harlem River Improvement and the apportionment OF
damages and benefits to the property affected. yes
terday down about S34 800 by Justice Barrett In
Supreme Court Chambers. The amount claimed had
been awarded by referee but Justice Barrett held
this which estimated to be about third OF
value OF tho lands upon which II be assessed,
was eXorbitant lie says;
This is certainly extraordinary bill OF costs and