New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-01-13
THE SINKING FUND SURPLUS
GOV. HILL SUGGESTS A WAY TO USE 1T.

GOV. HILL SUGGESTS A WAY TO USE 1T.
PROPOSING THAT 1T BE INVESTED IN SCHOOL
BUILDINGS AND OTHER CITY IMPROVEMENTS.
ALBANY, Jan. 12.-ln his annual message 10
the LEGISLATURE Governor Hill proposed TO present later
n special message the sinking fund and pubic im
movements Of New-York. This special message was
eent to the LEGISLATURE to-day The Governor quotes e
amendments TO the constitution limiting the capacity
Of the large cities OF the State to incur ana
says that the limitation wise In intention ana ca
cuaed to produce beneficial results in the future out
A. found certain Of the cities. and notably the Gil! oI
New York wholly unpreparsd for sudden stoppaSe
of the debtincurring capacity" When the amendment
wen, into effect total debt of New York CITY amount
ed to Sl26,S71,l3S5S or $l4,S9l97S.So OF the hint
then put upon its debt -incurrng capacity. IL was
therefore under the second clause OF the amendment
prohb,ted from mourning further Indebtedness until 1t
should have reduced it's then outstanding lDdeptedhess
10 less than the prescribed 10 cent After anayzng
tho present financial condition Of the city, the Governor
says
Thus II becomes apparent that, If the assessed
value of the real estate in the city subject TO ta0aon
snnam which has been about the average annual In
crease heretofore the city Will he wholly unable Tor
some wears to come to any money except upon
revenue bonds issued IN anticipation OF the collection Of
taxes of the then current year, and upon the bonds
SSs mot been Of the
ing bonded Indebtedness Of the city, the Commissioners
cummuiated revenues $34179,33s SO on January l.
1883 and on January lss0 ye me
entertained the opinion that the bonds so held by the
TO nave been paid by reason the in
them Of the accumulated revenues OF inc funu put must
fndebedness of the city. within the purview OF the
suona provision restricting the power OF cities to IN
chr .ndeb edness This opinion has trecenty received
judicial sanction from the Court of Common Pleas of the
City Of IN case sn wh'a armed sne So long as
that decision remains unreversed must De accepted Us
q correct xpostion of the law
fhrta tS
ia great and immediate necessity for the expenditure
of very considerable amount of money for the erection
and construction of public buildings and
other structures in New-York City. New
school buildings are needed, he says, to
accommodate a large number OF children now unpro-
yid,d for new armories are required. and there is
pressing demand for docks. Large rentals could be
saved, he says by the erection Of municipal building
TO accommodate the now scatt, red departments Con
tinuing, the Governor says
There exists then the hand the seeming pressing
NECESSITY for the expenditure IN the near future OF
large sums money for the construction or Works OF
6ity OF providing such expenditure either by the
bonds or by direct taxation The only apparent
is to found in the revenues which annually now into
the Sinking Fund
He then gives the legislative history OF INC Sihklhs
Fund aud says:
IL seems to be clear beyond reasonable question: that
so long there remains outstanding ana unpaid any
mart of the for the ultimate pay nent OF winch Inc
aforementioned revenues nave Deen pleuged' IL Is
the city OF NeW-1Ork or the Legs
lature 10 divert from tue mixing uhu any VI
such revenues and such diversion seems 10 nave Deen
specially Of t5e act of SIS Nor Would such
diversion of these repeatedly pledged revenues become
have increased annual sum which, II accumulated
the date of maturity Of the last bond eharse"oe upon
ali like which had Their tOIore fallen due but
Would leave an accumulated plus after such payment
of some millions dollars 1t cannot be conceived that
any court wonld hold that deb or could violate
his solemn contract give his creditor certain
m
even could demonstrate, that such security
nm w event the creditor would be justified
by all known principles OF a% IN ms upon e e
as hereinbefore shown to the sinking fund have grown
to proportions which promise All accumulation ana III,
of the fund tar in excess oil any possible demand
upon 1t. -. $40 .,,, ,:,al ohi.o,icrs %
diyertfng the sinking fund of its pledged reve
but there does not seem to De any such 10
rrov,dinp different thOd investing part OF
these revenues from that which has heretofore ooahe
tent he one when offers ample security in case
need only for the money invested put Tor an
from such at least equal to that which would
be derived the investment of the same amount OF
money in city bonds: such an nvrstnent would u
seems be provided the commissioners OF the Sinking
fund were empowered to annually invest portion
Of the revenues pledsed to ana reeeNeS ny
by which boo o ssid revenues aud any any
struclou of docks and hui dings for public use IN the
city of NewYork upon properly belonging to or to be
STRUCTURES, well as upon the property upon which
fund shall first preferred lien secured as TO
until the final guishment
of All debt for which the sinking fund is pledged, at
which time the properly should vest In the city OF New
York. freed from all liens anu Charges
In the meantime, and until the final extngushment OF
the debt shall free the sinking fund OF all charges and
pledges now imposed upon IL, the city OF New-IOrk
should be required raise annually by taxation and TO
nav TO the commissioners OF tue sinking fund an
amount equal to per cent upon the whole amount OF
money and shOu d. III adlton ne required 10
take proper netdfu measures 10 keep the buildings
ard structures in repair.
statute should be passed. such as here suggested.
IL IA believed the city of New York Will he enabled
at an iry provide for of It's more pressing
necessities far as the erection OF public buildings IS
letter or spiri, the constitutional limitations upon It's
debt mourning capacity The evil sought 10 be guarded
against provision of the constitution was the i'm
nOston uuon future generations of taxpayers of the
payment for tie expenditures OF to-day. BY the method
now .esed payment present or future, Will lie
Imposed upon the other than those which are
iminutabv fxed anu which must continue 10 be made
I'm order to put limit upon the period during
which the city OF New YORK viii he required TO pay
pual rent interest upon The money invested by the
sinking fund commissioners. provision should De inahe
bonds be hereafter Issued shalt be MADE pay
much OF the revenues OF tn" sinking 1und
as shall be invested IN the manner herein suggested
am assured that the proper authorities OF the city or
will speedily prepare. and cause to be intro
duced IN the Legislature, bill which Will embody the
foregoing suggestions, and which VIII contain all the
and proper and protection as well
IcomInend such proposed legislation TO your prompt
and careful attention.
II