The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-01-05
Board of Finance Will Issue
Temporary Loan Bonds
in Spite of Mayor
Hoos.
TEXT OF THE COMMITTEES REPORT
Financial Situation Explained in
a Lengthy Communication
Martin ACT Sales
Defended.
TEXT OF The COMMITTEES REPORT

The Finance Board met at noon To-Day
and passed over the Mayors veto reso-
luton authorizing the issue of S2l,oVo Oh
temporary loan bonds. Commissioner
Midlige alone sustained the Mayor
The proceeds of the bonds were to have
been transferred to City Solicitor Smltn
in settlement for property bought IN py
him for the city at Martin act sales IL
has for many years been the custom at
Martin act sales for the Collector 70 puy
for the city such parcels as were not put-
chased by outsiders. In order to stralsnt-
en- out the Martin act accounts IN Lne
books of the Collector and Comptrotie.r
bonds were issued and the money palo ol-
rectly back into the city treasury,
Mayor Hoos had been in office only a
short time when he took exception io
the system and announced that he WouId
approve no more issues OF bonds Tor that
purpose. rr:
The situation was explained TO HIS
Honor by the Collector and Complrolier
and it was believed that his opJectionss ls
$27, 900 was recently authorized the mayor
vetoed the action. After reviewing lne
system he said the city should not puy
in any Martin act property, but shoulu
hold it and then sell it at the absolute
sales which have been conducted from
time to time by Frank Stevens. Inc
great objection to that plan was that the
city must first acquire title before it
could offer a good deed. To get tue
purchase had first to be made at the
The Title Guarantee and Trust Com
pany does the rest and gets all sucn
tracts in shape for the absolute sale
Today when the veto was taken up,
the Finance Committee filed a long and
interesting report, of which the 1olloW-
ing is summary
After reciting the words of the veto.
the committee said that their letter OF
August 2 was a sufficient answer TO tnal
part of the veto which dealt WIN Tue Tue
practice of issuing bonds for the purchase
of property by the city at tax safes. Ior
The reason that il was detrimental TO the
interests of the city that this frultiess
controversy should be carried on. Con-
tinuing the committee sald:-We hao
hoped that by allowing the matter TO pc
dropped and the experience gained dally
in the routine of his office, Of whlcn we
aware, the Executive. would nave peeu
convinced how fallacious and untrust-
worthy was the advice he was accepting
as his guide in municipal hnanclal trans
actions. We submit that If our fscal sys-
tenn is unsafe and the Mayor KNOWS
wherein it is so, it is his duty to point
it out and to suggest the remedy. But
we will not concede that there IS any
merit in any of the obJectlons I.lIa mace py ~
gust or December. When these oplec-
lions are sifted down we flnd that tney
show nothing unsound in the f1scal poncy
itself but bold statement that IN WORK
ing it out some detail is objectlonaDie 10
the Executives adviser. But nc sugges-
tion is offered as to a remedy.
The committee next takes up the threat
made by the Mayor that he would not
sign any more subsequent tax bonds, ana
TO show the results of such an action the
committee give an explanation OF the
financial system of the city, ana aQuS
that unpaid taxes upon lands place the
city in exactly the same position as that
= of an individual who holds mortgage
upon a piece of land. In case OF 1oreclos-
ure and no bidder it is considered good
business f or the mortgage to bid the
nroperty in and then realize what he can
upon it. The unpaid taxes are assets TOR
tax arrearage bonds which have been an
nually issued in anticipation OF the pay
ment of the arrearages.
IN to the question of these subsequent
tax bonds the report enters mlnutely,
showing why they are raised. and stating
that if they were not issued the unpald
taxes whose payment they represent
would be apparent in an increased
amount of arrearage bonds of the year in
which they were respectively levied. by
the. language of the act it makes it COM
pulsory on the Mayors part to sign the
bonds and makes still more futile the III,
advised interference with well tried
Methods
The report did not please Mr.. Midlige.
He reviewed the Mayors action in re,
lation to the Martin act system and called
attention to the fact that when the ap-
propriations for the several boards Were
made His Honor interposed serious OBJ
jectionS to the continuance of the lndlS-
crirninate issue of temporary loan bonds.
Mr. Midlige argued that the Mayors veto
should be upheld Commissioners Brau-
tigam Kellers, Bailey and Simpson
thought otherwise. The Board is to meet
again this evening.