The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1902-08-01

whether they had been paid or moi
Neither in Mr.. Hough's Office nor any
where else could l get definite informa
tion. If they have been paid, of .cours
Mr.. Hougll's answer to my criticism
good. But we simply have his word TO
it in the Journal l am unable to veri
fly the point"
SINKING FUND FRAUD.
The reporter then directed Nj
Brooks attention to charges Nos. AM
5, which practically pertain to the sam
matter and which appeared in the Jour
nal' as follows:-
Charge No. At is proposed to
pay temporary loan bonds with
liquor license money, contrary to
law.
Comptroller Hough's reply-"The
city charter, section Il, page 112,
tells very explicitly just how this
liquor license money is to be used.
The charter says that the liquor
license money turned into the
sinking fund shall be used exclus-
lively to satisfy bonds of Jersey
City, And that's exactly what the
Board of Finance intends to do. If
temporary loan bonds are not bonds
of Jersey City, what are they!''
Charge No. 5-Specifies long list
of temporary loan bonds which it
is declared the budget does not pro-
vide for.
Comptroller Hough--.'If Commits
sioner Brock wiz compare that part
of the speech with the schedule
adopted in the tax budget, headed
For payment of bonds falling due
1902 1903. temporary loan bonds due
Dec. 1, 1902, he will find the very
bonds which it is said We're omit
ted"
Comptroller Hough said further:
THAT speech surprised me. 1t
will surprise everybody who reads it
and who is conversant with the
facts. The resolution ordering $780,,
900 of the liquor license money paid
into the citys sinking fund was
passed by the Board of Finance only
a few days ago, and the vote, | be-
lieve, was unanimous. There was
no protest then. There need be
none now. The law has been fol
lowed in every particular and the
budget as adopted is above criti-
cism.'
In reply to these points Mr.. BrocE
said:-
Mr.. hough is quite right in saying
that the Board of Finance can use the
liquor license money to pay off city
but he is not warranted
in saying that the operations which the
Board has gone through in this case are
legal The law authorizes the Board Of
Finance to devote. portion of the liquor
license money to sinking fund purposes
Under the law, l certainly voted, as
Mr.. Hough. says l did. for the resolu
ton making the transfer of 100000.
Now let us see what took place
when that transfer was made.
''There are certain old bonds of the
city outstanding, not provided with speci
fc sinking funds for their redemption
When sums of money from the liquor
license fund are transferred to the Sink
ing Fund Commissioners without desig
nation as to the particular purpose fol
which they are to be used. they apply
at once on these old unprotected bonds
The moment the money goes into the
Sinking Fund it automatically applies
itself on these bonds and it is fraud
to attempt to use it for any other pur'
pose.
when the resolution appropriating
the 100000 was before the Board Of
Finance, l especially asked Mr. Ringle
if it was proposed to direct how the
should be applied. He answered
that it was not. and he answered truth.
fully. The resolution was general one
/ voted for it because | knew under the
law in doing so l was voting for the
reduction of bonds which had no sinking
fund of their own, and | had pleasure il
casting such vote. l say now if this
money is to be diverted to pay temporary
loan bonds or for any other purpose ii
will be illegal. 1t is a misappropriatior
of funds. and the Sinking Fund Com
missioners and their bondsmen can be
to put the $4,000, or any part
of it that they so misuse, back in the
Sinking Fund to the credit of the unse
cured bonds.
NOT PROVIDED FOR.
"As for Mr.. Hough's assertion that the
long list of temporary loan bonds SCI
forth in my report has been provided
for in the budget. say it is an outrage
on arithmetic. These bonds. as showr