The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-08-09
Board Of Finance Accepts
the Offer Of Rollins &
&c. Of Boston.
CITY'S AGREEMENT HAS A STRING
Bonds Must Be Ready Be-
fore August "a or They
Cannot Be Issued.

noon for the purpose of considering g
proposition to ~straighten out the very
serious matter of the issue of the re-
mainder Of the Public School gold bonds,
the Supreme Court having declared the
| previous act under which the Board
worked Unconstitutional, because it was
of a special character. Present at the
meeting were Messrs. r. Simpson. Acting
President; w. F. Midlige, Jacob Ringle,
Corporation Counsel A. T.. McDermott
and Comptroller Hough. Assistant Clerk
M. J.. Kalaaer was Clerk pro tenn He
read the following letter from Messrs. Dill
lon & Hubbard. counsel for E. Fl. Rollins
of Boston, the purchaser of the last is
sue of 500, COO gold bonds
August s, 1898.
The enclosed communication from
Messrs. E. II. Rollins & Sons. to whom
were AWARDED one hundred thousand dot
lars of school bonds under their recent
bid, presents a solution Of the difhcuities
preme Court of this State. which decision
practically holds that a law authorizing
the issue of bonds to erect schools in q
certain class of cities is in contravention
Of the constitutional inhibition of special
legislation for the regulation of the inter
nal affairs Of the municipalities. The act
Chapter ID of the laws of 1898, and it au-
thorizes any city in the State to issue
bonds to an amount not exceeding $lo0,Wv
U lliC DQt QOSG VI u1Ai7 ciio
erecting thereon public school buildings,
and furnishing the same. or for the pur-
pose Of erecting and furnishing public
school buildings on lands owned by such
city; said bonds shall be payable in not
less h ten years, nor more than twenty
years from the date of their issue, and
shall bear interest at not more than 5 per
cent. per annum. payable half yearly;
they shall be signed by the Mayor. coun-
tersigned by the City Treasurer or other
chief financial officer of the said city, n
attested by the City Clerk under the seal
of the city; they shall be sold at public or
private sale for not less than par and ae-
crued interest. said bonds may be regis
tered in coupon as said board may direct:
provided hat no bonds shall be issued In
pursuance of this act after the expiration
Of six months from and after the approval
Thereof.
IN their first communication upon this
subject, It was proposed by the Messrs.
Rollins that the city should reimburse
them for legal expense. informed them
that / could not advise this course, and
they waived this claim in a telegram. and
sent the communication herewith sub
mitted. The price offered by them is on
the same basis as their bid, and | re-
specially advise the acceptance OF their
offer. The statute under which action IS
proposed was approved by the Governor
on the 24th of last February. and, as you
will see by the quotation also used, 1t
will be necessary to have the bonds deliv-
cred to the Messrs. Rollins on or before
the 2sd inst.
Since / received the enclosed commune
cation from Messrs. Rollins, the City
1omptr9lleT mas eSpr a,s5S dquon ~ va apd
a III hasaro tbe 5a5 inst ana I have
therefore drawn a resolution
the offer in such terms that there will not
he any liability nm fhe mart Of the city If
the engrossing cannot be done on time.
Yours. etc.
DILLON & HUBBARD.
NJ. ,at+ar referraa "a Inv the LAWYERS
= = f i
vas %
bostol, aug. T. 1870.
The Honorable Board of Finance, Jer-
sey city. ~. J.
Gentlemen-Referring to our DID OF June
IL last. Tor Sloo.VW re goia school bonus
OF your city ana the FeIusai OF our ~
torneys to approve OF SAD issue OF ponas,
we beg to say that we are ddVisea 9y our
attorneys. Messrs. Dillon & Hubbard that
your city has authority under an act ap-
proved February "a, 1873, to issue Slo0ooU
School bonds; but that the act provides
that the bonds must be issued within SIX
months from and after approval OF the
act that is. he bonds must be issued on
or before August "a. 1898.
Our attorneys advise us that under res
olutions which they can repair your city
can proceed under this act to issue $780,
600 gold bonds. and sell them to us IN
place of the 300, 900 issued under the act
of March 81. 1897. which bonds ave failed
to receive the approval of Messrs. Dillon
& Hubbard. The bonds issued under the
act of February "a, 1888. however, must
have a life of twenty years instead OF
thirty years.
Based on the above information which
we have received from our attorneys. the
substance of which we believe has been
communicated to your Corporation Coun-
sci. Mr.. McDermott, we beg to state that
we will take from your city such new
issue of TWENTY year gold School bonds,
amounting TO 500. 600. issued on the lines
suggested above. the same to be approved
by Messrs. Diilon q Huppard; at u
equivalent to Sl,04a.4o for each $1,000 IN
bonds
"a making our ola 20 your h~o :
Board, on June u, we decided on a 1igure,
$lo6.03: which allowed us a profit OF Sf.ls
by selling the bonds on a S.6o% interest
basis, winch TOR a twenty-nme year pond
was slo7-l6. which would nave been our
list price.
A 5000 interest basis for a twenty year
AZ bond Is $lo5.67, deducting the same mar
gin OF pron5. nancy. Sl,iS, we arp1ve al
our bid as above stated- namely; slo4o4
You fully understand u leehhg as 70
the attitude wnlcn YOUR city mas taken
toward our old OF June -; as expressed 10
your boald ala suus o,1ieia5 W iitooush eait
a MI I a q ne n0SlItDDM VAjI raw