New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-06
THAT KINGS COUNTY DEBT.
CITY AND COUNTY OFFICIALS CONFER.
DIVERSE OPINIONS nr1D-TnE QUESTION MAY

HAVE TO BE DECIDED BY THE COURTS.
The question whether Kings County has exceeded
the lawful Limitation OF debt engrossed much at'e".'on
and aroused great discussion yesterday II 1t Is i'o.
that the limit set by law has been passed TINS s'te "
affairs has existed for years and 1t has been et or
lawyer In New-York to discover the fact co"e'
ence was held in the Office OF Mayor Body yesVe'uaS
which the subject was discussed by the H"SoI Oo
porati)n Counsel jerks. Controller Jackson Oo"".s
Treasurer Adams. and Colonel Meyenbofg' coun'ei ~
the Board OF supervisors. The conference WIS ~
with closed doors, but at its CONCLUSION M''o' '''
made this statement OF the result reached
TINS Is ? county matter. No question has ARISEN ~ "
gard to the city's reatbing its limitation o .,
Every one admits that fave the right 20 iNSu ,,r
millions in excess Of our present debt Inc .,
49,, ,n soyi,os hank .ad today that he was sat'het
that the city could increase its indebtedness an "" -,
from 90 100000 to s3o0ooo0 IL was 'no s"a -.
opinion all present that the county h'i ~" Ut,
limitations. You understand that in condefihS NV '
Indebtedness and the county valuation the TWO must "
taken together authorities propose to ns'sI u"' .o
purchasers OF the county bonds take then' anu "' ~"
cline :. will be made a question Of law at once
The basis OF calculation adopted az ue "eeo''s We"
.rrved nj nv dciucting the sinking Fund ana TAX
certificates from the total city debt ana certica.es
of indebtedness nom the total county dep' ea.I"S "o
net debt Of city and county at Si6,02''oo ien per
cent of the total valuation of city ana county -
S46 500 OCO leaving the narrow margin OF Sl''''''.
Iut II the city can incur debt up TO 10 per cent o
the total valuation of the city, the county "S' oo
several millions beyond the limit
Comfy Treasurer Adams holds that the county Is
still within the limit, and he has directed 'olohc
Meyenborg begin suit against inc Easo hiN'
Savings Institution to compel II TO take ana pay lo'
tbe bonds for 100000 which were bid for on April IS
pids were opened on that day for tax certificates for
s2oo 600 for the erection of the new 18th Regiment
Armorv and $4,000 for the erection of the new
,ob Recjment Al1nory F.. Moran took S2l
600. the East savings Institution Sooooo' f.
Morrison 100000, and Blake brothers S'o'.
600 No one Of the purchasers has paid
for tho bonds. but unless they all do suits Will be
heonn against them. This will make test question
OF the matter and it can be carried to the court OF
Appeas and a final decision can be reached IN regard
10 the Interpretation Of the law in relation 10 lc
limit of indebtedness in counties containing loooOo
Inhabitants.
Clarence F. Brdscye. son of eX-Jndgc LuHeh
Biriseyc, who is member of the firm OF bliu'eye'
CIoyd g. Baylss. is the counsel on whose advice IN"
bonds refused. lie gave legal opinion Ill 'ic
matter on April 80 to Blake Brothers. lie adVlSeu
them that the bonds Of The city OF Brooklyn are
issued within the constitutional limit, the debt being
S4OO0,OOO less than 1t could be, While II 'he
water debt Is excluded further limit Of So.o0OO0o
exists But in regard TO the county debt the opinion
of Mr. Birdseye is the opposite of this. lie says:
The assessed valuation of ths real estate Of the city
of Brooklyn and county Of Kings rs it appeared by the
assessment rolls OF said county the lat assessment
p,ior to the currng OF this indebtedness siGs 05G
19S OF this valuation the city Of Brooklyn contributed
,s02,47o Ten per cent of the total Naiuaeloh !
Si6,sO5.Gl2 So If the city OF Brooklyn is chuteo TO
10 per cent upon valuation, we understand That IL
claims 10 be, and IS think il is. the county OF hhg'
would be entitled only sl925,2G5 So It's present
debt (incrdins that which was in existence az
the time Section IL of Article Of the CONSTITUTION
u amended went into effect on January l. loo'l' y
A. 324 200 as stated in the Tcasures report for
the fiscal year ending July 81, 1891. We IND 5rstshd
that the county claims that its debt IS toc odded 70 th
city's debt. and thu. both together cannot eeeeu
SAG sos 612 50.
Tho moapnc o. this section Of the Constitution IS not
altogether plain and It NAV that Cont Of ApDes
will hold county. as 1t claims, Is entitled 10 F"e
citys valuation. If so. the tot'i city anu eouns
debt sl well within the Limitation oil slooo'oiz oo
But II IL shall be the Court Of Appeals that Tho
city debt of 10 per cent upon tho valuation
Of its estate county has probably reached It's limit
Of debt allowing for the debt which was IN en-
istence January l. 1885.
Under the Constitution excess Of Indebtedness IS
atsoluty void and IL there mistake made at ths
time it cannot by Legislature or the
county itself therefore unwilling TO dcice tina
the proposed bonds will the county In
aebedness beyond its limit under the Constitution we
Of opinion, Therefore that you cannot safely accept
county tonds without determination by tho Court
Of Appeals upon the right OF the county under the Consa
ton. to issue these bonds.
Mr. Birdseye dictated this statement yesterday in
response to inquiries about the matter:
The only question Is whether the county
has exceeded its limit parties that the city
Il not anywhere its limit. IL Is then, that
Just the county bonds, and not those Of the
city The question IS really between the city and the
county the 10 per cent debt is to be divided
and e 70 this constitution is silent. A. any excess
OF liability is according the Constitution, al scluey void,
and cannot be rewrdicd in except by another
amendment 10 the Constitution or the passage Of measure
BY Legislatures and subsequent ratification by the
people State il is safe for one 10 nrclasa
county bonds long ii be ultimately held by
the Cour, OF Appeals that the county is now or by this
issue will outside OF Of It's proportion Of the 10 cent
limit county wishes 10 borrow any mole money it
probably have 10 have the question sted and carried
to the Appeals in order determine whether
not the county itself has exceeded BY this issue VIII
coed is limit.
The East River Savings Institution check
for $4,000 Of the issue, but had not received it,
bonds my opinion the matter TO Blake Bros.
who had asked me 10 pass on $4,000 worth VIII n
they had purchased. The Fast River people at once
sent over their check, but the County
Treasurer refused it, and paymen, was
stopped 1t. As understand no other money has
been paid in and all the purchasers OF the bonds have
fused TO until this matter has been settled 1t Is
the the question has ever been raised. Ny
opinion f. that the Court OF Appeals Will be very likely 70
hold that the cy' contention correct and that Is that
the two together County and city, entitled 20 10
per debt tho city Is entitled 10 per
upon its property and The county Is entitled 10
deb; equal 10 10 per cent OF TIE balance
OF course It FOR the county officials TO say
whether this question which has aien shall be determined
by the courts II they pres the who bid On
the bonds 10 Is bound u 10 the couts. Otherwise
Will II you aid the city ond county debt tOgethcr
the total amount docs exceed the asttuona limit
OF $fG 500, 62 So but il, out OF amount city
is entitled to Sii000O00. 10 per cent o. the prOpcI
valuation. the county debt certainly exceed IN,
million and odd dollars which constitutes 90 cent Of
the balance II the city continues To Increase In yaiua-
ton a; the rat q about 10000 OC0 ycas th,n
under claim Of the county officials. they ala
s2ocoO0O a year to the county debt. though tn
county towns decrease In value at az. rae. DO.
INCREASE at all"
County Clerk cadlcy holds that the county has not
exceeded the limit ard that the city De counted
rs portion Of the county the city wards b7
law towns OF Kings COUNTY
Colonel MeYenhnrr I'D