New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-26
CoLER REPLIES TO Mack.
IN LETTER HE ANSWERS CHARGES
SUBMITTED TO THE GOVERNOR,
SAYS HIS COURSE IN AwARDINGaBoNDs AT
THE SALE OF AUGUST s. 1895. %WAs
ACCORDING TO LAW.

VET Inc 4elteE is as IolAoMS-
It is with extreme reluctance that request. the
privilege of commenting publicly through l youL
columns upon me eh n w HIact me In anV ordi-
case. dignity propr1ety ana good TASTE wou E
normal purpose of which IS secure the removal
1.1,5 NJ he answered or tried out in the news
papers in advance OF any examination therteoI .!
Mack End his attorney however. to secure at III
cost the "loest gosslPle - tii,71 pben1
on poss Nbe occasions has led me to believe th;ao
allow their remarkable preversions of facts and
law 10 ind Judgement in the public mind without
am no; unm 1ndful Of the extreme fairness not
by the press in regard TO this matter and the
received from emil s ts have Touched me deeply;
dalous and sensations. charges oil thS et Fa to
hear of their final dsp 1slton ana II ls CIG m IL
better sometimes to reIn the mud as soon as II
is thrown rather than TO wait for II 10 0iy
MI Iaes ghs Izs5 as fo Ft 6%s 's may
prior to the bond nd sale az t 81 oonlt
iionai debt limit difculties Of fhs city TO bear
.seeond-That these bonds were awarded e I'M
PronsT5 b 70 mn personal Efforts and those Of
the banking hrm of which an thirty-one
rePaTa1e BIDS submitted highe. com 5ined rate
tssne iesving The other one-thrd undisposed Off
cITY-s CONSTITUTIONAL DEBT lA-aII-
believe the foregoing is fair sta{sen in 0 view
that is contained In Mr. MACK c"'' s'' -
First-TRat Mr. Mack in recent public letter ter
supreme Court by conceding that acted correctly
in rejecting the syndicate 3os ina n no time has
Nr Mack dared charge thai hitu any - Pi IN
sana oecuniary interest. however remote OF IN m
direct in the disposition Of me noHa 7ic4 iT
though the effort is plainly mace +be - pbc mind
once ana for ali desire 10 stats Tor me "a
such may have noted th1s feTmoaliiedIy false as
thar il Is as absola1eE 1t! mali cious
dc cSipf
On m January 1885 the city of Ne1v-York as now
constituted came existence bun oehsa YIN d
debt largely in excess oil Lae 70 enter with
detail into The causes for this the chleI reason ;
81 The counties Of New-York, Kings, Richmond
and part Of Queens which mas pc u Of The
ea9nla de6f Of the city NewYorR The fact
Of mis- excessive Indebtedness has never been con
adicie by eopse9t AUTHORITY Yin t 50pslrs M to-
Soon after assuming the Office OF Cor tr.5bei in ~
became my duty 10 ascertain 2ust w nd as this
debtedness 81 me I nv Of nuuber of
REQUESTED from the Corporation Counsel an opmloh
tn regard thereto. - s.,,d
that in Classifying the various KINDS OF lhaepISi
ness which fell within the purview OF the cons =
tut fadr IF I6 enormous liabilities the fund
for street ana a RIf5 wer 10 be Ultimately borne
BY assessments upon proPeTg I9cd Sg bad been
drawn with peculiar provisions intended to 3bvlate
this very co3stltudoai Glr Ibat Year i'
The result OF Including these liabilities was start
f ling; II of S Of NeYorR had for some years been
iofiis ~ excess Of the constitutional limit In
nIg3eo "a with this the unfortunate regard
10 the indebtedness Of the new CITY was amos mos
new Obligations but if most or all OF the important
p@9ne 10 i eonsoIidaton had been based on invalid
contracts the result would have pSe StpI f1ar9
rersuadng the Corporation Counsel that the ma
billties Of the fund for street and park openings
should be included IN statement q t!lS
debt. An unfortunate controversy broke 49, 9L1 De
tween the two departments OF Law and FINANCE,
but the original opinion was qualified in the manner
which followed no cloud remained upon the acts
OF obligations Of the old city of New-Nork
FUNDS NEEDED FOR OLD CONTRACTS.
As soon as these facts had been established it
prosecution Of the contracts OF the ola cry NO
greater urgency could have existed AS the result
OF the seppage Ct payments on tne eiidT an
Of them had been abandoned by contractor son1F ne
ten & on ~ Ss Est Rv en- Bde case for
eaiedns would have TO be abandoned and hundreds
Of thousands OF dollars worth OF work the foun-
qtos for {he piers would be ruled SO S ss2 &c of
oonds every dollar OF ~hich IeITesn'eo ca tnee
verseiy not dollar of which represented any new
o6gatons BY the sale OF thfe Poas tn of t9 s3
damage liability or liability on contracts, for the
tTeasu9Ty thfTS Was 56sfo6ed % e VI
which when Gepostea IN ths clty Te4SuII wIeF
these bonds depended, therefore upon the validity
issued and the validity of these liabilities depended
upon the constitutional ability OF the former city
Of New-York TO become indebted the times when
new city had nothing 10 do with the issuing Of
these bonds. The city indebted in excess
OF the constitutional limit but that did prevent
1t from changing the form Of a debt originally
validity created by the old city.
OF this elementary legal proposition, which
examined the subject Mr. Mack and his Iearne9
counsel appear 70 be entirely ignorant, for he st
persists in arguing from my public declarations in
Tegard 70 the Indebtedness Of the new city of New
ioIA 'sucH as my letter 10 Governor Black, urging
legal separation OF the county from the city
qepIs), tna{ could not lawfully have issued these
ponq IN behalf u the old city if The new city
indebted in excess of its constitutional limitation
Is this really ignorance or something worse?
REPORTS INTENDED TO DETER BIDDERS
few days prior the date for the opening Of
bids for these bonds l was informed that reports
Were IN circulation calculated deter intending
ndoers from buying on account Of their alleged
3lItaileIly. ] had previously WorYed extremely
marc IN convincing large financial interests and
character. II was my first bond sale. and I
intensely interested in its success. so far from
Sest enoTts 10 DulllIg them so as 10 secure the
best price possible On this point the testimony of
q TINS CITY ana their attorneys VIII be FOL Incoming.
Fortuna tely. moreover. the official 'pOndence
the same fact. on hearing these rumors I immedi-
ately set about through my banking firm to organ
offer al a fair price Cor the bonds. II an eN-
tremely difficult undertaking in view of the large
before the opening of the bids but it succeeded and
"a place Of INC bonds going at about par (a7 had
been predicted there were three syndicate bids
very close and approNimating Jos.
And now TO the award.
The courts having decided that the highest bid
Chat Of Nermilye d Co and Kuhn Loeb & Coz
was invalid by reason OF its conditional character,
the Produce Exchange Trust Company became the
t1ghest Dld for the whole issue There were bids
aggregate bids Of these individual bidders Gnclud-
ing also those submitted at lower rate Than the
al al,9f