The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-07-15
FINANCIAL TOCSIN.
Mayor Hoos' Gloomy Note
Of Alarm stirs Up
the F1nancierS.
MARTIN ACT CASH EVAP0RATED.
Nearly $500, 900 Increase in
the Gross City Debt-Park
Purchases AssaIled.
NO RAILWAY TAX INCREASE THIS YEAR
Economy in the Budget Enlasaed
to the Point of Ignoring Stall
utes Which Fix Salaries.
NO RAILWAY TAX INCREASE THIS YEAR

Mayor Hoos dropped a bomb in the
camp of the Finance Commissioners last
night. The explosion has not died away
yet and it viii not surprise some officials
if President Brautigam, Commissioners
Kellers, Bailey and Simpson pack up their
belongings and get out and leave His
Honor to paddle his own canoe. The
bombshel was in the form of letter
which is a scathing arraignment of all
the Boards of the city; as harsh an epis-
tie as was ever styled an official docu-
n.ent.
Some weeks ago, the Mayor, It will be
remembered. asked Comptroller Hough
for an accounting of the city's financial
condition. The report. a voluminous one,
reached His Honor a few weeks ago. 1t
forms the basis of the Mayors attack.
The letter to be appreciated must be read
from beginning to end. It is as follows
Desiring that, for the knowledge of
the past and present, and guidance IN
the future, there should be obtained an
exact statement Of the city's financial
condition. | requested certain informa-
tion from the City Comptroller on May Z.
His answer with detailed exhibits are
herewith sent to you.
On December l, 1892, the gross debt of
the city amounted TO $1S.d2o. 220.13- On
December /, 1886, this amount had been
increased TO Sl4,39S, 49, .96. This shows an
increase in the debt of sI77.9lI.23. The
exhibits further show that during the i've
years ending May l, 1887, there were coli
lected of taxes and assessments levied
prior to December l. 1892, and adjusted
under the Martin Act the sum. Of
s.. .254. .es7.s7 The total amount of cash in
parent that at least s2,2os. Sc Of the
money collected under the Martin Act
was not used. as it should have been, to
decrease the city's debt or that If 1t was
so used other debt has been created IN
place of that extinguished; If the amount
the reduction of the city debt, and new
debt avoided the gross debt would nave
been reduced over e, 9po.Goo, instead OF De-
ing increased nearly sSB.090.
While it will be Disappointing to the
public to learn that the sinking funds;
which Were during the late municipal
to represeat an aceuuulation Of over
80 600 geo have IN them but s45. .65o.0l IN
cashit is even more serious to hnS sra ,na. ,ti,,
Act has been diverted from the uses in
tended by the law.
The money has not been used in street
improvements. The amount OF improve
r1ent certificates outstanding December ];
1872. was SIS. 500. On May l, 1897, this had
grown to s652, 26O. 80. The total cost of i'm
Nav Nav /, 1897, was 81. .2s5 926. SO. The amount
collected from assessments for these i'm
being ss9 5sS 81 - and safrs
issued on account of the improveme i
is evident that the s2.254, ,0s7.S7 collected
paying for improvements; It was not
used to reduce the city debt and am
forced to the conclusion that very con-
siderable portion, if not all, of the money
thus collected has been used directly or
Indirectly to pay the ordinary or extra
ordinary expenses of the city government en-.
Act put it in sinking fund. and then
borrow the money on a demand note,
probably never to be, demanded or PAID,
easier, but it is not good policy. What
becomes of the announcements Of reduc,
tions of the city debt. OF payment OF "a az ]
deluded or attempted to delude the people
of this town when the fact Is displayed 1
reduced g. Ooo,O 900 in the past five years
has been increased sS00-ooo.
If 1t is answered that the collections
under the Martin Act were used to pay
with figures. for a dollar of debt must
have been created for every dollar paid
the tax ratcss.ave been figured out by the
evasions of duty. 1t is a fact that your
Board yielding to clamor for large appro-
priations to the different departments
has omitted from the tax levy items
which should have been inserted. This
can lead to but one result; It may de-
Ce1VG the people IOT q liIIlc DQL ~ ID iCelAly
niortgaging the future.
The tax budgets made by your Board
have not been made upon. rules which
will square with honest dealing with the
city's creditors. Reductions in the rate
have been made in way neither praise
worthy nor lawful This should not be
levy ieys.shi should be sum offering every dol
lar necessary to pay the interest on the
city debt and reduce that debt in the
manner required by law. To do this is
dt.fy fn avoid If a trFfip with the CitV'S
credit. 1t may be that the result will be
an unpleasant awakening to those who
Beard can undergo any tenderness on
that score. The duty of fixing the amount
to be raised by taxation for municipal
pnnpose pposacing M Iss peeember br Iss7 @ devolves
upon you. and under the law that power
is almost absolute AS Mayor / have no
members of your Board were appointed
by my immediate predecessor. and am
not in any sense responsible for the tax
levy as you may determine it. The law
to control or review your action. and the
personnel of your Board being not Of my
selection approaen with va sbar5d aldenee sug
The annual tax burdens of taxpayers in
this city are too heavy For years the
burden has steadily increased. The rate
cf taxation has been kept below three
ratabies, not through Inclusion of i'm
RFcV&DentS5 DQI IHdluly by idtSiA5 sdidt-
lions. The rate of taxation for county
purposes has also steadily increased and
the double consequence has been that this
city is forced to pay more than its share
Of the county taxes 1t Is therefore plain
that any attempt to decrease. the tax
rate by Increasing valuations will only re-
suit in an increase of burdens.
Taxpayers care little about the rate;
Their concern is with the amount Of
money they have to pay to support the
government, and they cannot be misled
by d reduced rate obtained by increasing
valuations.
The avenue to reduction of municipal
burdens has been made very difficult by
legislation. When application is made to
the powers at Trenton for the doing Of
Justice. for equal taxation or for power
TO economically obtain a supply of water
we are treated as strangers in a strange
land; but this apparent GOODNESS grows
to fervid warmth when some one con-
ceives It to be his duty to ask for power
the cost Of the city government We have
been authorized to issue bonds for every