The Jersey City news., 1902-05-29
FAKE EXPLODED
New Hospital and High
School Humbug Are
Knocked Out by
the Financiers.
NO BIG BOND ISSUE.
100000 City Loans Not
to Be Made It'll After
This Tax Levy"
EXTRAVACANCE VERSUS
THE MARTIN ACT
Additional 1915, 900 Needed
to Pay Old Debt to East
Jersey Water Go.

The Finance Commissioners prior 70
holding the regular meeting yesterday al
ternoon spent almost two hours Win
Mavor Pagan and Comptroller Hough dis
cussing bond issues for the purpose OF
carrying out the Mayors schemes Tor
which laws were passed at the recent
session OF the legislature. 1t was decid-
ed after much deliberation to abandon the
issuance of bonds for a new City Hospi-
tal. sso0. 900. and new High school. $780,
0OO untii after this years tax Levy haa
heen made IN. That will be after July
l. and then the $S0o,90o worth OF 2onas'
with probably more to satisfy Mayor
Fagan, will be issued and the interest ana
sinking 1und charges viii begin with ,he
tax levy of 1S02-19O3
Mayor Pagan, it is said. was particu-
larly anxious to have the Finance Com
missioners issue the hospital bonds yes
terday. He didn't seem to care what the
taxpayer would say if the commissioners
had decided to let him have his City Hos
pit&l now, until one of the lever heaaed
members of the Finance Board pointed
out to him the dangers of any such action
on their part. He was told that the
charges on $500 600 worth of bonds for the
unexpired portion of the present fscal
wear and all the coming one would ap-
proach s10O 900. and, under this load the
tax rate would get dangerously near three
per cent. The Mayor was inclined
TO be restive, but. in the words
of the slang thrower. his appoin-
tee. General Abernethy, put him WISE
ia allowing the hospital matter to go
over until after the tax levy had peen
made up He declared, however, ne
would prod the Board of Finance as soon
after July as he might think about 1t.
Commissioner Lembeck, chairman OF the
Committee on Finance, notified his coli
leagues that he had had talk with the
officials of the Provident Institution for
Savings. owners of twenty-nine lots south
of and adjoining the present hospital land,
on which it is proposed to build the new
hospital, and that they have agreed to sell
the entire plot for s12,5o0. This price the
Finance Commissioners considered fair
and for the amount they have Is
sued bonds. The opinion was that the
city would get only fourteen lots. but Mr.
I,embeck informed his fellow commission
ers that s12.5O0 would buy twenty-nine
lots. He was directed to close deal
with the Provident people today and ne
expects to do so.
Regarding the new High School bonds,
1t was considered the duty Of the Board
of School Estimate to consider the matter
before the Board of Finance took any ac-
tion.
1t was intended to pass resolution or
dering bonds issued in the sum of sS75-ooo
to liquidate the old standing water debt
of the East Jersey Water Company. This
debt was incurred during the Wanser adj
ministration. 1t was originally s4OO 600,
but the Democratic Finance Board paid
off $25,0 600. AT last weeks meeting of the
Finance Commissioners letter was re-
ceived from the East Jersey Company
saying that if the debt was not paid soon
the rate of interest would be increased
from four to six per cent. After yester-
days meeting one of the commissioners
told News reporter that it is the
purpose of the Board to direct the clerk
to advertise for bidders for this issue of
bonds at next weeks meeting.