New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-04-11
TO REDUCE THE CITffS BURDENS.
A BILL TO CHANGE THE MANAGEMENT OF THE
SINKING FUND so THAT THE TAX
LEVY MAY DE DECREASED

LEVY MAY DE DECREASED
A bill understood to have been prepared by W.
Bourne Cochran and John H. Strahan. with the aid
Of Corporation Counsel Beekman, amending the
statutes governing the management Of the Sinking
Fund, the Inject being reduce citys tax budget
was sent 70 Albany last night. memorial to the
Legislature approving 1t. signed by Mayor Grant
Recorder smy. Controller Myers, Chamberlain
Croker, President Goldman, OF the Tax Department;
President Arnold, of the Board Of Aldermen, and
Chairman Storm, of the Adcrmen's Finance Com
mittee who compose the Sinking Fund Commission
and tho Board Of Estimate, accompanied the bill.
Under existing laws the memorial says :" the
public burdens OF the city, which are provided Cor
either from taxation or from the revenues OF the
Sinking Fund. unnecessarily increase the annual
taxation OF the city in order TO secure Increase
Of the eccumulatons Of the Sinking Fund. These
Accommodations April l, 1850. amounted 70 S44l54,
oS5 90, while the annual revenues of the fund exceed
g. 100000. The outstanding bonds and stocks Of
the city, charge upon this fund amount, to
Ses, 49,, 042 35
The sinking accumulation and the annual revenues
that 20 to form the accumulatOns than sui
fcient provide for the payment Of all bonds and
stocks Of the city, charge upon the fund these
become payable Without therefore In any way, or 10
any extent, affecting the existing security for the pay
men Of all such bonds AMI stocas there IS available
surplus OF the Sinking Fund revenues which can be
applied to the relief OF the annual tax levy of the city
By the provisions Of this bill II the same becomes
law the responsible fnanca! officers Of the city VIII
be enabled to provide this relief when the condition
OF the accumulatous and the annual revenues OF tie
Sinking Fund Will authorize the same To secure Tie
relief indicated is the sole and exclusive object In
tended TO be accomplished By the passage OF THIS till
II seems TO Us that the bill meets the emergencies
Of the st .;iou- and therefore respectfully urge
its passage
Under separate provisions Of the law the two paris
of the Shining Fund collected 20 hqdidate the clS
debt by taxing up the bonds IN one case and In the
other 10 provide the the bonds until they
are taken up. some carrier ponds pear
q higher rate of interest than they could now b9
funded for, and Of tie surplus eccunuIauohs
awe been invested in these Old bonds. The sl.A'
ing Fund Is therefore raking money Tor tAe ueu'
redemption fund as interest OF thc bonds 1t holds.
section IT, of the Consoidai ion Act provides that
the surplus Of the interest raising sinking Fund shall
60 into the redemption fund by transit But INC
interest on the bonds in the Sinking FUNDS invest
meuts Is raised yearly in the tax levy, thus addlhE
to the burden Of taxation every year. The CITY IS
therefore raising double interest On Its old bonds
issued at a high rate.
The new bill amends Section LIZ OF the ConsSnu@
ton Act providing that the interest raising sinking
FUND shall directly furnish the Interest due on the
bonds in the other sinking Fund. This Is expected
10 reduce tho tax levy and avoid return to the pres
ent situation. AS IL To- surplus OF the SINKING una
would De sure 10 uS|ui i'Hb ~
Of the maturity of ali the bonds charseaoie against
It. some having still twenty years to r.n THIS "oulo
result In the collection OF larSe amounts OF taAeS
which would remain useless awaiting the maturity
Of the last OF the bonds for the termination OF Inc
sinking Fund sys. IN. 80, , eo,to- 100
of fbe Console alton Act that the sums n~Ce9s4l
for the redemption Of the oItstand nT cry HeGl may
be takcr from thc sinbn: Fund Instead OF me tdA
ieyv II also gives the Board OF Estimate unt july
! 10 revise the budget OF 1889 In accordance WIN .io
nrnnosed legislation. decreasing the SUNS SCI apar.
Tor Interest and redemption purposes, and reducing
also the rate.