New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-05
BROOKLYN'S GREAT DEBT.
HER EXCESSIVE ISSUE OF BONDS.
RECENT ONES REFUSED BY THE PURCHAsERS-
OFFICIAL OPINIONS.

RECENT ONES REFUSED BY THE PURCHASERS=
OFFICIAL OPINIONS.
serious question confronts the management Of ths
finances Of the Kings County. At recent sale a
100000 OF county bonds. the East River savings
Institution Of NewYork the successful bidder for
100000 OF the bonds and sent check for this amount
in payment. The check was deposited by County
Treasurer Adams. with the National City Bank. but
when it returned to the bank Issuing
1t. payment refused the ground that the issue
Of bonds was Illegal, the county having exceeded the
limit Of bonded indebtedness fixed by law. The East
River Savings Institute asserts that 1t has legal
advice to this effect and sought yesterday to
its check from Treasurer Adams. The latter de-
clined to return 1t until the matter Is settled, and
called in Mayor Boody, who will have conference
with the Corporation Counsel and Treasurer Adams
regarding the matter today.
The constitutional amendment says that no county
containing city OF over 100000 inhabitants or any
such city shall bc allowed to become indebted for any
purpose 10 an amount which including existing
Indebtedness shall exceed ten per centum Of the as
sessed valuation OF the real Of such county or
city subject to taxation appeared by the assess
nent rolls OF the last assessment for state and County
purposes prior to the ncurring OF such indebtedness"
The net city debt is about S42,OOO,OOO, and the
county debt about $4,000 ,OOO The gross city debt In.
clides S2o2j3,l6O 03 which is payable from taxation;
Sl2oooOOo water debt payable from receipts OF waer
cHPOitry ueDt or Ss33,OOO ana certificates
OF S3OOOOOO making total Of $45, ,752, 100 03. The
sum Of 1897 ,37O 81 Is in the sinking Fund leaving
tic net city debt S42 100 Al. The funded debt OF
te county amounts to $5, $40 J0O and certificates Of
Indebtedness cover $632 9O2 "a, making a total Of
$6,475,4 ,4O2 "a
The assessed valuation OF real estate the city in
lo9l was $i46, 6,sO247O. and in the county towns
SlD,2o365S, making total Of S465, ,O5612S for the
entire county Ten Of this is s4e so5sla So
The gross debt OF city and county is S52 563 IT.
and the net debt s4s 267 200 H. the city authori-
ties hold that the water debt being provided for id
other ways than by taxation ought not to be counted
In the net debt, that the city and county are far
within the 10 per cent limit.
County Treasurer Adams said yesterday that tho
city debt was about $40 100000 and the county debt
about S6OOOOOO and that this was not In excess OF
the limit set by law.
Mayor Boody declined to discuss the subject until
ne had consulted with Corporation Counsel Jenks The
latter holds that the city is well within the limit set
by law for the Indebtedness Of large cities.
Deputy Controller Hubert Smith said that the citv
was still $sOtoooo inside the limit of Indebtedness
and that the difficulty existed in relation to the county
alone lie thought that the law capable OF sew
eal interpretations 1t might mean that an issue Of
county bonds was Illegal only when the county had
overstepped the limit only when tho combined in
uebedness OF city and county had 0verpased the limit
II the issue Of bonds recently authorized Is declared
Illegal there will be no money forthcoming complete
the new armOries for the 18th and I4th regiments
which the county is building. None OF the other pur.
chasers of county bonds has declined TO take them
n prominent Republican said This is only an.
other proof OF the reckless Democratic MANAGEMENT
OF the city and country finances and shows the abso-
lute need OF the restriction which is placed upon tho
expenditures OF large cities BY law Under Mayor
Chaplin the city expenditures were dangerously near
the limit OF the onetenth OF the assessed value OF
real estate allowed IL they did exceed It, but the
attention called to the matter In the press prevented
Illegal expenditures. But when the assessors got To
work they added enough millions to the valuation Of
real estate TO keep the budget within bounds. An
OTHER big boost will have to be given the valuations
this year. for the Board Of Estimate will have large
additions TO make to tho tax levy by reason OF the
bills which have become laws which add largely
TO the salaries of city officials. II
halt has TO be called In the reckless expenditure OF
money by the Board OF supervisors 1t will be a good
thing for the taxpayers. Under the present system
the money for current expenses has to be borrowed
for the last half OF the fiscal year and only temporary
Inconvenience will incurred II the sale Of bonds TO
meet the cost of the new arores and other projected
public works IS prevented for the time being. AS
soon as the new assessment Is made the expense
be incurred as the limit will be r,lsed.'
Democratic politicians were unwilling to talk about
sideration at the hands OF the Mayor. the County
Treasurer the Controller and the Corporation Cou-
sci and the counsel OF the Board Of supervisors, who
viii meet and consult in regard TO the matter to-day.
II the ground Is taken that the county incur debt
~ t h , rS "a tb H Ps nt o' wn o uc t tiin rs M
debtedness f. far less than what be incurred,
while If on the other hand the city is 10 be- left out
Of consideration and the county only incur OBJ
legations amounting to 10 per cent OF the valuation
Of the county the present debt is far In
OF what can be legally incurred. Even upon the basis
OF the added valuations OF the city and the towns
aud the added debts OF city and county. the total Is
In excess of what may lawfully be assumed. Ii Is
probable that resort will be had the courts to settle
the matter The question has never been raised be-
fore its present form. The city charter provides
that the city wards shall be regarded towns Of the
county.