The Sunday morning news. [volume] (Jersey City [N.J.]) 1886-1891, 1891-05-31
The real estate consists of pl
bought in under foreclosure.


bought in under foreclosure.
HISTORY OF THE SINKING FUND.
The history OF the sinking fund makes
| interesting reading.
The money was secured by taxation,
| and was to be held sacred for the pay
ment of the bonds. 1t was in the hands
OF commissioners, many different per-
sons having served from time to time.
| The politicians and nlanipulators of
finance soon began to look upon the fund
| with envious eyes. BY various means,
including legislation. the State was made
to send this sacred fund. largely upon
bond ans ana moFsgage upon farms ana
| above shows the result. After the panic
of 1878 interest on mortgages was not
paid, and since then the fund has been in
wretched condition. Efforts were made
to secure reform and new commission
ers were selected, the investments were
regulated by law. and the commissioners,
who were paid 81, 900 year each, aud had
counsel and clerical assistance besides.
were supposed to look after matters more
thoroughly. The result was no better.
Then the final change was made and the
control of the fund was turned over to
the State Treasurer.
Governor Albeit and Treasurer Gray,
early IN the latter's term, made an ex-
animation OF the funds accounts. IL was
found that the interest on most of the
mortgages was being paid with fair de-
gree of promptness, though there were
noticeable exceptions. But the item that
staggered the officials, as it mas all others
who have examined the fund, was that
which put $216, 417.67 as the value of real
estate held by the fund.
TRYING TO LOCATE THE FARMS
"What is this real estatef" asked the
treasurer. He soon found that he must
learn for himself. for the answers to the
inquiry at the State House were not at
all satisfactory. Since that time the
treasurer has found his hands full. There
are twenty-five pieces of real estate,
nearly all farm land. These properties
are not merely lying idle, but they have
cost the state a great deal of money.
What was everybody's business has
seemed to be nobody's. While few
were rented and returned enough income
| to pay for repairs and insurance (they
| nay no taxes) the others were dead loss
| year IN and year out. The impolicy,
under the best circumstances, OF the
State attempting TO own and run farms
| scattered all over the State was seen and
| appreciated by the treasurer and COVER
nor at once, and it was agreed that there
| should be every effort made to dispose Of
| the property, TO realize upon the assets,
| get the fund in manageable shape, SO
| that 1t would return an income instead of
| being @ source of expense; and further
| to restore to taxation the properties which
| by reason of State ownership did not con-
| trib ute TO local burdens. This policy is
n ow being pursued
| In getting at the facts the Treasurer has
had to do deal OF travelling. and has met
| with some surprises. An effort was made
| for instance. to locate the Beardsiey farm
! at Harneyst own, Sussex county. Judge
| Lewis J. Martin met Treasurer Gray at
| Newton and the two started out to find
the farm. Ex-senator Lawrence was en-
49, 1.~teEt IL
| farm was reached. Arrived there, ten
ant was found In possession. He did not
| know his intPrviewcrs, and a few cautious
questions revealed that the farmer was
paying 5000 rent for the farm to man in
a neighboring town, and that the man to
whom the payments were made did really
possess authority from the old Commits
sion TO lease the farm, had received the
money from the tenant as shown by re-
ceipts, but had not turned it over TO the
State. Whether 1t can be recovered from
him remains to be seen, and it is doubtful.
as he is said to have no property Ar.
fragments were, however, made by which
the future income will go to the State and
| the farm itself will be sold, If possible II
had cost the State 49, 81 up to LAST No
| vember. and is probably worth consider
| ably less than this amount. PROCEEDINGS
| win soon be begun against the agent who
did not turn over the moneys paid.
COLLECTING rem FOR THE STATES LAND
A large tract OF woodland in Warren
! county was among the assets. When
search was made no deed could be found.
and IL was finally necessary to get a duptf
| cate. In Somerset county farm held bv
| the fund was occupied by tenant who
! paid nothing These farms In Somerset
1 have cost the State over $4,000, ana are
| probably worth less than tlyo-thirds Of
that sum, and have been continual sources
| OF expense. These have been placed in
| the market and the rentals are being col
lected. The Croweil farm, in RAILWAY.
was another case of marked neglect.
Repairs were made to the building and a
teuant obtained; but there is no reason
| why the property should not soon be dis.
posed of. as it is available.
One of the most remarkable cases en- =
/ countered was that of the Peters prom
erty, SO and "a Astor street, Newark.
/ Que of these buildings was sold under
the Martin act, and a suit has been
| going on over the matter. Although the
counsel OF the old Commissioners had
been notified repeatedly no steps were
taken to protect the property, and an ex-
\ pensfve litigation has resulted A week
| ago yesterday Treasurer Gray made set
! Element with the agent of the Newark
properties, and this was the first Ia sig
/ teen months
Numerous other instances OF the uep-
lect OF the fund have been Developed an
are being remodied as rapidly as possible
by Treasurer Gray. He thinks the reai
estate can be sold and the funds placed in
sound condition within short time and
! certain the heavy drain of expense can
be stopped Interest is being collected
more promptly ana mOrtoaQors have been