The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-08-06
BOTH RIGHT
AND WRONG,
City Did Not Pay Off $780,
600 Worth of Bonds
Last January.
coPYIsT's ERROR FoI $1,000
Tax Arrearage Bonds for 1854 :
600 Were Paid, However,
and S17o, 900 Refunded
at Lower Interest.
TEN PER CENT SAFETY MARGIN
Short Time Bonds Said to Be
Worth a Premium-Appropri-
ations Not Exceeded.
TEN PER CENT SAFETY MARGIN

dllOHS NUt EACoOuCus
In an interview, published in local
paper yesterday. Allan L. McDermott in
discussing the recent answer of the Board
of Finance to Mayor Hoos, said
'sThe statement of the Sinking Fund,
which is incorporated in the Finance
Boards answer. is a bald misstatement.
say they paid 900 of bonds on the flrst
of last January. l haven't access to the
city's books, but | know that the city
or anyone else was not on the first OF last
January reduced 100000 or any other con-
siderable amount.
things are juggled with, take the state
menf that $700,0OO of bonds were paid last
January and print the truth alongside
that statement.
The bonds paid on January 1, last, were
$1,000 of engine house bonds, No. !, issued
in 1890, maturing 1897 and new armory
bond of $1,000, issued 1885,.
There were maturing at the same time
$434, 900 of tax arrearage bonds issued in
1892 on account of the tax arrears of 1890.
OF that issue, there were retired $264000,
and the remaining $4,000 were reissued
at AZ per cent instead of 5 per cent, the
original rate of interest.
1.-THE report of the Finance Board
shows, it is true, that the city paid
100000 of bonds in January last" said
Clerk Van Saun, of the Sinking Fund
Commission today. There is a mistake
of $69S, 900 in that statement. The $lO0,0OO
has doubtless become confused in the
preparation of the report with the $1,000
of engine house bonds. The engine
house bonds were retired with money
which had been yearly inserted in the
tax levy. Accordingly Mr.. McDermott is
quite right that 900 of bonds were not
paid in January last He is right, how
ever, because of stenographer's error
in the report
s'The fact, however, that the Sinking
Fund has paid 1854 900 of an issue of $4S4.-
900 tax arrearage bonds shows that tax
arrearage bonds are not yalueless or
nearly so, as Mr. McDermott asserts.
when it was found necessary to re-
issue the bonds that could not be
retired upon maturity, they were sold to
outsiders at a decreased percentage of
one-half per cent The new issue will
mature in January, 1899, and it is not at
all improbable that they will in most part
paid, will be accounted for to some ex-
tent by cancellation and adjustment of
taxes. There may be no real loss, how
ever. as shrinkage in collections is provid-
ed for in the one-ninth which is added to
arrearage bonds are worth their face
value, and it will doubtless be made quite
clear to the public in a few days that
they are worth healthy premium A
premium will be offered if the arrearage
bonds Mr.. McDermott takes so little
stock in are placed on the market. The
city is collecting taxes which are, in ar
rears every day."
Mr. McDermotts charge that the appro-
priations of the several Boards are ex-
ceeded yearly, will be answered in good
time a member of the Wanser-Finanee
Board faction said today. Continuing he
said
I'VE did not answer the charge again
letter because we decided to hold that
ammunition in reserve. We will show
Mr.. McDermott that he is wrong in that
as well as in other matters Every one
who is at all familiar with the city S
method of doing business knows that
the appropriation for cleaning streets
and removing ashes and garbage is ex-
ceeded every year. It is supplemented,
however, under proper laws. When the
appropriation is made. no provision is
made for carrying on that work in Janu-
ary and February. If it chances to be
clear in those months, great inroads are
made in the appropriation. Another ac-
count which is exceeded is the claims ac-
count of the Board of Finance. 1t is
almost an utter impossibility to fix a
proper amount for that account. Last
year, judgments and the most unlocked
for expenses were paid out of 1t. Outside
of statutory allowances, all the expenses
of the Board, save the fees of w. D.
Edwards and Edlow w. Harrison in the
equal taxation case, were paid out Of it.
The members consider 1t preferable to
supplement the claims account than issue
temporary loan bonds. For other Boards
to exceed appropriations is almost an inn
possibility, because of the safeguards
that are thrown around such a thing in
the offices of the City Comptroller and
Treasurer.
HE did not answer the charge again
for the reason that if we do it will be
our painful duty to show how the exceed
ing of appropriations under the Wanser
administration compares with that of the
preceding one.
ssThe Board of Finance is still in pos
session Of few facts which will be made
public for the benefit of Mr. McDermott.
If it is possible to convince him that his
understanding Of the clty's finances is
erroneous he will be convinced.
Neither he nor Mayor Hoos will have
his own way in this discussion. There