The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-26
oTrH Nor 4 nEruprlron.



Some of the small holders of Improvement
bonds issued by the small towns of Richmond
and Queens prior TO consolidation and after
tho charter was passed got Il into their heads
yesterday that the bonds might be repudiated
by the city. and tho Comptroller or .his deputy
was kept busy nearly all day answering quos.
lions as to the intention Of the city in regard TO
recognizing the validity OF the bonds. At o
o'clock last evening Comptroller Golfer issued
the following statement:
II believe the remarks OF tho Corporation
Counsel in regard to the lighting and other con-
tracts in Queens and Richmond counties have
boon misconstrued. These contracts appear to
be in many instances monstrously unjust to the
city Of New York and will doubtless be attacked
in the courts whenever there is any prospect of
success. These contracts, however. In no way
affect the question Of the city registering the
bonds which have been issued by these locali-
ties and sold to purchasers In good faith for full
value. Tho city Of New York does not pro-
pose to enter into any Wholesale plan of repudia-
Ion, and rumors 70 tbst effect are only preju'
On Jan. 8 Mr.. Coler Issued this statement
concerning tho bonds In question:
terest on ali bonds Of Brookiiyhn and Kinss coan.
~ because. from information obtained by tho
clear, that no question Of tho legality OF any
Brooklyn issue is likely to be raised. In reg9Ed
10 inc DOnQ issues OF Long 1SlnnQ CITY ana inc
several towns and villages Of. Richmond and
Queens counties. 1t has been decided to make
no payments until the validity thereof has been
passed on by the Corporation Counsel. This
determination need not necessarily BIO taken to
legality of any particular issue Of bonds, but
only TO indicate the intention Of the present
financial administration not to assume any liza
bility for tho new city. until the legality thereof
can be predicated with reasonable certainty
From this 1t will be seen that there Is a seri-
Gus question in tho minds of the present city Off
cials concerning the validity of these bonds.
Tho legality Of the issues was first questioned
by Comptroller Fitch. who intimated that the
question would be carried to the courts and set
tied there before New York would assume the
responsibility for such debts. He refused to
specify the towns or the issue Of bonds about
which the question was raised. and Comptroller
Coler 10 following his example. The disposition
Of the bonds will depend largely on the report Of
tho expert accountants, who have for several
months been investigating the financial affairs
Of all the cities and towns consolidated with the
complete report on the finances of those towns
10 now In the hands of Comptroller Coler, but he
would not tell what is In 1t.
Tho large holders OF the bonds of Richmond
and Queens are not worrying. The securities
were all passed upon at their instance by emf.
nent lawyers before the purchases. were made.
They say that they arc in no hurry for the inter
est and will wait any reasonable length OF time
for the Comptroller to complete his investiga-
ton before demanding payment. II, however,
when the examination Is completed. he refuses
to pay the interest on any specified issue. the
matter will be carried to the courts ct once.