The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1889-04-04
THE MAYOR SAYS
n o!
He Jumps on the Sinking
Fund Bond Replacement
with Both Feet.
MERE cHILD'S PLAY. HE SAYS.
The Adjustment of the Gity's Debt
to Hudson County Is Cordially
Approved, However.

Approved, however.
The Board of Finance held special
meeting this morning at which all the
members were present except Commis-
sioner Nugent. The clerk read several
most important messages from His Honor,
the Mayor Here is one:
have signed the resolution of your hon
orapIe body to issue 1856, 900 of bonds bear
ing three and one-half per cent interest to
pay the arrears due to the county for the
State and county taxes, and the resolution
favor OF Hugh Dugan, Esq, County Col
lector, to complete the transaction,
it being understood that the bonds
are not to be offered for sale, but
are to be taken up by. the county
with the warrants so ordered to be drawn.
1t seems to me that this is proper and
fair settlement of the demands of the
county, and oughtto have been made long
ago when Mr.. Dugan first suggested it.
have also signed the resolution author
izing temporary loans ~ per cent bonds
in anticipation of taxes to the extent of
S435, 900, as the same may be needed The
remainder of the series of resolutions con-
cerning the issuing of bonds and the draw
ing of warrants for the proceeds to be paid
into the Sinking Fund are herewith re-
turned WIN ODJeCUI0uS.
Whatever the condition OF the Sinking
Fund may be it does not seem to me that
this course is a wise method of hiding de-
fects and neglects dating back many
years. It seems to me that the remedy is
worse than the disease. There are certain
temporary loan bonds now in the Sinking
Fund, amounting according to these reso-
lutions to $676, 900, and interest thereon to
an amount not stated, but supposed to be
compromised at $4,000 If the inter
est is to be collected at all by the
Sinking Fund Commissioners, they have
no right to compromise but should de-
mand the full amount To pay these
bonds and the interest so compromised.
these resolutions propose an issue of
$766, 600 of three per cent. bonds, payable
within one year, and it is proposed in fact,
that the Sinking Fund shall take the new
issue in payment.
It is proposed to issue 81, ,OS2, 600 of three
per cent. bonds to return to the Sinking
Fund moneys that have been kept from it
for many years past
The condition of your Sinking Fund that
causes your Board now to adopt this
scheme was suspected by me long before
nv election in 1886 to the Office now have
the honor to hold, but information was de-
MED me when seeking it after that,
and / refrained from writing the
customary message in consequence.
Statements We're freely made that the
/ did not think any good would result to
the finances of the city by following the
matter further. 1t is a source of regret
that my suspicious are now shown to have
been well founded.
BY the present resolutions, ycu create
new bonded debt of 81, ,172,0 900 that must
hereafter be slated in any report of the
funded debt of the city. 1t is worse than
that, because the 1916, 900 of temporary
loan bonds in the sinking fund are taken
into the new issue, so that the apparent
new bonded debt would be $1,S4S, ,OOO
Add to this the $586OO0 given to
the county for arrearage, and the
new debt statement will show an increase
of 50, 49,, 900, most of which is made pay
able on demand. 1t will not do to add
this amount to the permanent debt state
ment for investors to read. They cannot
be expected to examine the causes in de-
tail for the increase. They will see the
bold plain fact, and it will injure the
credit of the city without any compensat-
ing benefit.
The city will be a borrower on. tempo
ary loans from time to time undavoida-
bly,, in anticipation of the collection of
taxes, for current expenses, and it seems
y to me bad policy to frighten capital when
4 we are asking the loan of it. That the
Sinking Fund has been very badly man
aged-.robbed OF its rights, in fact, and
sometimes robbed outright for the benefit
of other funds, as have long
contended-these resolutions plainly show
But it seems to me that the better course
now to pursue will be for your honorable
body to ask the Legislature to authorize
the cancelling of the clause of the Sinking
Fund intended to be provided for by these
resolutions, and hereafter let that fund
become a Sinking Fund in fact, and not
hollow sham. The trouble has come from
the intimate relations of the Sinking Fund
Commissioners with your honorable body,
9fff
The Sinking Fund Commission should
be q separate and Independent body One
of the resolutions declares that all moneys
collected for principal and interest of
arrears Of taxes from 1875 to
asids ass ete 1RelusEe Tsat shall abds b nss set
You may rescind such resolution at any
time, or the next Board may repeal it. It
has no permanent force, and it is high
time that such shams were done away with
in the management of the city finances.
, A more open and dignitied course will
give capital greater confidence and so lift
The credit of the city.
90 For these reasons and many Others not
herein expressed, I am constrained to
withhold my signature from these resolu-
tions.
The Mayor also sent the following
] respectfully call your attention to
provision in the act authorizing the ad-
iustment of arrears of taxes and water
rents and assessments, which authorizes
the enforcement Of the tax levy,
three per cent If the bonds shall
be issued, as proposed by your honor
able body, and the Interest provided for
in the next tax levy, and If all of the other
large items of interest are provided for
that are now in contemplation, it will be-
come impossible for you to arrange a tax
evy with a rate below three per cent.
limit, unless the system of assessing is
yery materially changed
When the message vetoing the Sinking
FEnd scheme had been read, Mr. Harden.
bergh Isaid: That's all very. well, Mr..
President, to give the Board of Finance a
schooling. 1t viii read well
ia Kentucky and Tennessee, but to
the people OF Jersey City when they know