The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-01-25

necessary to its municipal existence a
an offset TO its debt. He thought sucl
= claim of offset was ridiculous. Hi
idea OF a city's debt was the tota
amount that the taxpayers could b
called upon to pay. and that was al
there was to it.
Mr. McDermott's Illustration is hardly ii
Illustrative. a eity's municipal lands atit
buildings are hardly comparable with ths
vital organs of a living being; but they
arc fairly comparable with the building
owned by a bank. or with the factory OF
the machinery OF a manufacturing firm Of
corporation. The building of tho EVEN
ing Journal" its presses and other appur-
tence as a newspaper: the buildings of the
Lorillard Company. the Dixon crucible
Company or the Passaic 81 Company,
together with the machinery and appara-
tbs which they contain. are absolutely es-
sential to the existence of these great
corporations. Deprive them OF these
buildings and apparatus, and their means
of carrying out the purposes for which
they Were Incorporated would cease at
once. In a word. these buildings and so
forth are vital to their performance of
their vital functions as are the City Hall.
the police and fire stations. the schools.
the parks and the water system to the
vitality of a city. Yet all these corpora,
tions-and corporations generally-reckon
their buildings and apparatus and other
things vital to their existence. as a part
of their assets and an offset to their liza
bilities, and constantly make them a
basis for bonded Indebtedness. Financiers.
too. constantly accept them as a basis for
securing such debt.
The investment which a city makes in
new and additional municipal plant-in
a new city hall, in new parks or road
ways. in new fire engines. telegraph sys-
TENS. electric light systems. or what you
will. are not very different from commercial
invetments. such. for instance. as a hotel
proprietor makes when he paints or re-
furnishes or otherwise improves his hos
telry. They are designed to attract pa
tronage to a degree far exceeding their
own cost. And they never fail to do SO.
Mr.. McDermott. in his written speech, told
how the assessed value of property in this
city had increased. in a few years, by
twenty-five per cent: this would be, we
believe. in the nesghborhood of sixteen
million dollars. There is assuredly moth
ing in Mr.. McDermott's own figures as
to our city debt. to show that at this rate
of increase our municipal Investments had
not been magnificently remunerative. In
other words. WE have borrowed some
money. as all progressive businesses are apt
to. do, we ave used it speculatively il
Improvements, and we have reaped a
profit of about sixteen million dollars in
the last ten years.
Mr.. McDermott's speech is so crowded
with facts and figures and deductions that
any comprehensive way in any space
that we can afford. One other aspect of
the subject, we shall say a word upon
and then stop, returning. perhaps, on
another day in some way or other to his
strong condemnation of our sinking fund
system. Mr.. McDermott seems to be
surprised that in spite of the great sums
of money which nave been collected by the
city in late years. the debt has not mater
tally decreased.
He speaks of the great sums received
from license moneys. But he makes no
account apparently of the miles of streets
that have been repaved and the new
fund-improvements which certainly have
tended to the good and the pleasure of
the inhabitants of the city, and as we
believe. though he may not. improved its
credit, too.
He speaks of the collections of tax ar
rearages under the operations of the Mar
tin Act Commission: but he fails to make
allowance for the fact that each year
brings its own delinquency in payments
of taxes. so that if we are enabled just
now to pay up the bonds issued against
the arrearages of 1884. 1856. 1886. we are
compelled to issue new bonds for the
d~elinanencies of 1894. 1885 and 1896. and
wait. for a future time to adjust" and
collect and cancel the shortage of these
years.
There are other obvious reasons why
our city debt has not shown a large re-
duction. We have sold a milliun dollars
of bonds-or thereabouts-fo buy lane for
the new City Hall and erect the build
ing: We have built a couple of police sta
lions out of the money raised on bonds
and VIC have lately established a system
Of raising money for public improvements
In anticipation OF long deferred payment
of assessments. which creates a superficial
appearance Of increase in debt. though
not a real one.
And now there is one other statement in
McDermott's speech which calls for
a word Of comment. He says the city
salary list for the year ending December
l. 1886. is SIZE. 900 higher than tina for 1892.
This Is not as astonishing as it may seem.