The sun., 1897-06-06
THOSE NEWTOWN BONDS.
ISSUED TO MAKE THE BIG OITY PAY
FOR LOCAL IMPROVEMENTS,

~--~~ 49,
Vow Comes . Question whether Thcy Are
Legal After Ail-There was n Majority
| Vote IN Their Favor, but Not = Majority OF
All the Electors Voting at tho Rioction.
The 100000 worth of bonds which tho people
| OF Newtown, L. L. voted to issue at the spring
election in April, In order to raise money with
which to improve tho roads and highways OF the
town. were to have boon delivered to a firm of
bankers In Wall street, who contracted to take
the entire issue, at $3.50 o'clock yesterday morn
ing. Tho representative Of the bankers was
| ready to complete the transaction, when tenn
porary injunction was served upon Joseph Bor-
| mol. Supervisor Of Ncwtown and also member
ofthe Board of Supervisors of Queens county, re-
straining him from delivering the bonds or re-
ceiving their equivalent in money.
Tho injunction was granted by Supreme Court
Justice Gaynor, in Brooklyn, on Friday night,
and came like thunderbolt to the officials Of
Newtown, with whom the scheme to improve
the roads in and around their town has been
| pet project for years, and became possible for
the first time when the Legislature passed tho
| Greater New York charter The officials were
dumfoundcd over the interference, It being
pretty generally supposed that everybody In
Newtown or having interests there was enthu-
siastio over the now road idea No objections,
save tho negative votes of q very small proper
ton OF the citizens at the spring election,
had ever been made to the project to bond
the town. and 1t was believed that these objec-
tions had been silenced. As matter Of
fact they had, for tho interference comes from
an entirely different source Henry May and
Michael Levy, tho millionaire slaughter house
men, who own property valued at nearly
100000 In Newtown. made tho application for
the injunction through their counsel, Ira Leo
bamberger. They base their action on APPOINT
| OF law which. they say, shows beyond doubt
that tho bonding Of tho town Is illegal. In tho
application for the injunction this point of law
appears alone as tho basis Of tho action. Behind
1t, however, is q story of scared property own.
ers, who fear that the payment OF the $500. 900
| peryisor Bermel that 1t will have TO be almost
entirely borne by the Greater New York.
on April ABOUT week before fSx that 'Goy Goy
tho town Of Newtown was flooded with circu:
good citizens to cast their votes in favor OF the
resolution to bond the town in order to raise
was particularly interesting from the fact that
II called the attention Of the voters to a clause
they could yet $500, 900 worth OF roads for
"; 400 The interesting paragraphs Of the cir
per OF aesoT9 Of the
Therefore, we Of Scwtow;n MS should oS take heed.
the Greater New York is an accomplished fact.
before one head governs the whole territory. II
them. II We trust to luck we will get what an
imPr1rident rp' den people desorveI,nothing.
es viii as as hohns ths % 1bs
hts derived. General taxation for such improve
ments is more easily borne than local assessment
or taxation. Under the charter of the Greater
CITY OF New York, as enacted by the Legislature.
and now before the municipal heads and the
| GoveTnor Tor approval the tax must be borne by
the whole city. and according to their respective
assessed valuations. For example: In round
In the whole territory of the Greater New York
| Is $2,0OO. 100000 assessed valuation of New
town town. Ss,oooOOo; proposed Indebtedness. $780,.
What proportion of the principal debt does
on s bsr pay %sen We her
S2rd or or 12S0 ~ part OF 100000. or in other
The citizens OF Newtown didn't lose any timo
| In grasping the golden chance spread out before
them In Mr. BerInels circular, and tho resolu:
tion went through with rush. That Mr.. Bermel
might DO mistaken in his Interpretation OF the
charter OF the Greater New York didn't occur to
ago. when Messrs. May and Levy. observing
that the bonds issued were charReable on the
the m hs of
charter inyoived and 10 begin action il i was
Newtown. Mr. Bamberger did mot look at the
permanent will DO made before Justice Gaynor
| Messrs. May and Levy cite chapter l7s of the
laws OF 1895 In support OF their claim that the
| bonding OF the town Is illegal This chapter
| provides that a vote OF a majority OF the cleo
tors of Of any any. town Voting at an annual town
| OF Supervisors can authorize that town to bor-
row any money for. or on the faith and credit OF
such town: At the spring election $500 ballots
Auditor, constables. and other offices The bal
lots cast on the resolution providing for the CON
| etructtng and repairing OF the highways num-
bered 2.os1. or these 1850 were cast In favor
Of tho resolution. The plaintiffs admit that
this Is majority of the votes cast the specific
question OF whether or not tho town should be
bonded, but that it Is not q majority of the cleo
tors voting at the town meeting. since $500
votes were cast for officers Of tho town.
| Both Mr. Lovy and Mr.. May admitted yester-
day that It WAS close question of law as to
| whether the act shall be construed to the effect
that the majority applies to the ballots cast on
the specific subject voted upon or to the total
pose or office. If 1t turned out that tho bonds
were Illegally issued. they said, 1t would create
| great financial embarrassment and confusion in
tho affairs OF the town. Mr.. Bamberger do
| clined to talk about the matter at all yesterday
Justice Gaynor's decision will be OF great
interest TO lawyers In general as well as 10 tho
| official OF the small Long Island towns which
have been rushing into debt ever since they
were led to believe that they could get expen-
the Greater New York charter. The decision
will also interest Seth Low, William c. De Witt
BENJAMIN f. Tracy. and other members of the
commission which drew up tho Greater New
meetings within the past few weeks denounced
the small towns which are to be absorbed into
| Greater New York. for their conduct in rushing
into debt IN order TO make the new city pay for
| their local improvements.
| ~ 4, rn . ~ ",