The sun., 1894-09-24

ing the int crest on the bonds, shall be securely
invested. and, with the annual sccretion OF In
terest thereon. shall constitute q sinking fund
for the payment and redemption at maturity OF
the bonds issued as hereinafter provided"
IL will be seen here, also. as a guide In con-
struction. that there Ia provision in regard TO
taxation either in the irst, or in snv instance.
There Is no requirement that the excess Of rentals
Of the railroad in this city after paying interest on
the bonds. shall constitute a special fund for
any purpose. The remainder Of setd rentals
not required for the payment Of eaid interest
shall be paid into the sinking fund" Now,
what is our sinking fundr II is fund TO |
which the Croton water rents and thirty odd |
other items Of municipal revenue have been |
from time 10 time devoted for the redemption |
Of the city debt. In the present condition OF
| the fund these revenues amount, as l have |
| stated to about six millions per annum. This |
| fund has existed since the year 1913. IL was |
| reconstructed In the year 1879, when large
| amount OF bonded Indebtedness was charged
| upon the fund, subordinate to the existing liens,
and three classes OF liens were recognized. II
| was then expressly provided that the bonds and
| stock for which the said sinking fund was
then pledged constituted q preferred charge on
the fund. Our sinking fund is not an inex-
| haustible, ever-howing and overfowing treas
| ury. As the appropriated revenues accrue they
are not allowed to accumulate, but they are ap-
piled TO the redemption OF the debt charged
upon the fund, and this gives margin for sddi-
| tional issues II will be seen that the rentals,
over the annual interest on the bonds, are made
| part Of the general assets Of the fund. and
| can be applied generally to any bonds OF the
city. according IN their priority
The bonds OF the sinking fund, as l have
stated are TO be paid from the fund in their or
der OF liens The sinking fund may not be In
| condition to pay the bonds in question or any
considerable portion OF them as they mature
what IL the remedy II is provided by law
| that when the Commissioners OF the sinking
Fund shall certify that the accumulations OF
the sinking fund are not sufficient to meet the
bonds and stocks falling due in the following
calendar year. II shall be the duty Of the Board
OF Estimate and Apportionment tn include In
the taxation Of such year such amounts as may
be certified. not exceeding two millions Of dollars.
viii this be adequate to meet the proposed
loan of ffty millions OF dollars at maturity2
There may be ultimately remedy against the
city, in certain contingencies, b. action; but
when that action Is commenced. the city can set
up as q defence the invalidity OF the whole
scheme, and. as will proceed to show it would
have a good ground OF defence in that regard
CONSTITUTIONAL QUESTIONS.
The Constitution OF the State, by an amend
ment taking effect on the lst Of January, 1878,
provides, among other things, that "the Legis-
laturc shall not pass private or local bill"
.granting to any corporation, association, or In
dividual the right to lay down railroad tracks"
or granting to any private corporation, associ-
alton, or individual any exclusive privilege. i'm
nunity. or franchise whatever" and 1t requires
that the Legislature shall pass general laws pro-
viding for the cases enumerated in this section.
The first act passed In pursuance OF this re-
quirement at the then ensuing session Of the
Legislature. relating to elevated railroads and
grants therefor, was an act further To provide
for the construction and operation OF steam rail-
ways in the counties OF the state" tchapter GOO.
Laws 1879, under which the present elevated
railroads we're constructed This act provides
. for the appointment Of hve Commissioners OF
Rapid Transit by the local authorities Of the