The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1902-08-04
CL-EARLY Y
CRIMINAL
The Proposed Course in Pay
ing Off Temporary Loans
Sheer Misappropri-
alton.
SINKING FUND LOOT
Allan L. McDermott's Advice
to City Clerk O'Donnell
Touching the Liquor
License Transfer.
SINKING FUND LOOT

City Clerk O'Donnell having been in
doubt as to the operations of the act Of
1878 referring to the Sinking Funds
powers and the temporary loan bonds
and whether or not any other than fund.-
ed debt bonds were included in the term
Jersey City bonds" he asked former
Corporation Counsel Allan L. McDer-
mott for an opinion on the question at
issue before signing certain warrants.
Mr.. McDermott sent today to the city.
this opinion
August 2, 1902.
'Hon. M. J. O'Donnell, City Clerk Of
Jersey City.
Dear Sir:--You ask my opinion as to
your official duty with reference to a.
warrant drawing the sum of sixty thous-
and dollars from the money received
from liquor licenses, and devoting the
same to the Sinking Fund of 1873
1t has been publicly stated that this
requisition upon the license funds IS
made for the ultimate purpose of meeting
certain temporary loan bonds which were
issued with the express provision, in
each, that they, should be placed in the
next tax levy To pay these temporary
loans from any of the sinking funds of
Jersey City would, in my opinion, render
those who make the payment criminal
ly liable.
In the budget adopted last Wednes-
day, the amount appropriated to pay
bonds due coming year. is S32, 253.2 20. In
the levy of last year the amount appro-
priated for this purpose was $75,374.6 .68,
The $50, ,253.20 is not appropriated to-
pay temporary loan bonds, and the re-:
duction is made notwithstanding the fact
that, since July 1, 1901, the Board of FL
nance has issued over $58, 600 of Tempo
rary loan bonds, to pay current expenses,
and those bonds are in the sinking funds
of Jersey City, each with pledge at
tached that the money for it's redempt-
ton will be inserted in the next tax
levy
FALSEHOODS NAILED.
OF this amount over $4,000 were
issued after the first of January, and
the pledge that they would be redeemed
in the next tax levy is signed by the
issued these temporary loan bonds with
condition that they were to be paid
from money derived from the license
fees would have been illegal, and they
must be paid by the proceeds of taxa
tion. The amount appropriated for sink
ing funds last year was $162, $50. At
least this amount should have been ap-
propriated this year, but the amount is
reduced to $135, 1850.
These reductions answer the claim
that the temporary loan bonds issued
since January l, 1902, have been pro-
vided for in the tax levy. Not only
is the statement unqualifiedly false, but
a further item of 500, 900 which was in
serted in the tax levies of 1897, 1898.
1899 and 1901, in order to keep faith
with the sinking fund of 1890, is wholly
omitted from this levy.
To the charge of this omission, it is
retorted that similar one was made
in 1900 This is like pleading that an
offence is not punishable because it was
committed before.
In published interview had with the
City Comptroller, find the following -
sCharge No. 4. 1t is proposed to pay
temporary loan bonds with liquor license
money, contrary to law"
Comptroller Hough's reply:-"The
city charter, section II, page 112, tells
very explicitly 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 exclusive
" 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?"
1t would be well for the City Comp
troller to search further for his legal adj
vice. THE city charter, section II, page
1922 does not govern the question, as
he would undoubtedly have learned if
he had consulted the Corporation Coun-
sci. But if it were the law today, it
would not authorize the payment of a
temporary loan bond issued under
pledge that it would be inserted in the
next tax levy"
A FINANCIAL CRIME.
Every year Jersey City borrows
money iii anticipation of the collection
of taxes" and issues temporary loan
bonds for these loans. # Mr.. Hough is
correct, these bonds could be paid from
the sinking funds. TO pay temporary